East African Legislative Assembly
PRESS RELEASE
FASTRACK ALTERNATIVE SUSTAINABLE FUNDING MECHANISMS NOW, EALA URGES PARTNER STATES
East African Legislative Assembly, Zanzibar, Tanzania: 13 October, 2016:
Given
the recent financial crunch the Community has undergone, the Assembly
is now urging the Summit of EAC Heads of State to direct the Council of
Ministers to implement
its directive on alternative sustainable funding mechanisms within a
timeframe that it (the Summit) shall determine.
This
follows a Resolution passed by the Assembly urging the Summit to
fastrack implementation of the directive on Alternative sustainable
funding mechanisms
and/or invoke Articles 143 of the EAC against defaulting Partner States
in as far as the financial obligation to the Community is concerned.
The
landmark Resolution was moved by Hon Judith Pareno and seconded by Hon
Dr Odette Nyiramilimo. The Assembly further urged the Secretary General
of the Community
to transmit the Resolution to the Chair of the Summit for inclusion in
to the agenda of the November 2016 Summit or at the earliest opportunity
when it meets.
The
Resolution avers that the consistent default of financial contributions
by Partner States has led to the depletion of the EAC general reserves
to tune of
about USD.6.5 Million to facilitate the activities of the Community.
The
Resolution was presented to the House on Wednesday afternoon. However,
the Chairperson of the EAC Council of Ministers and Deputy Minister of
Foreign Affairs
and EAC in the United Republic of Tanzania, Hon Dr Susan Kolimba,
tabled a Motion for adjournment of debate under Rule 30 (C) of the Rules
of Procedure. In her explanation, the Minister had sought for
adjournment till November 2016 stating that the Council
of Ministers was seized of the matter and it was under consideration.
The
Motion however did not sail through the House, prompting the Speaker,
Rt Hon Daniel F. Kidega to rule that the substantive Motion be debated
to its conclusive
end.The Resolution notes with deep concern that all activities
of the Community have come to a standstill or have been disrupted since
August, 2016. Activities of not only EALA but other EAC Organs and
Institutions have also been affected. Specifically,
for EALA are the planned activities of the General Purpose Committee,
the Committee on Communications, Trade and Investments, the Regional
Affairs and Conflict Resolutions Committee, the Legal, Rules and
Privileges Committee and the Select Committee against
Genocide and Genocide Denial.
“Other
activities include the delayed payment of salaries and payment of EAC
suppliers. These have also disrupted all other activities including the
ongoing
plenary. This is after the Secretary General informed the August House
in the 1st Meeting of the 5th Session that he had made substantial savings – are the savings being realized through none implementation of activities?
the Resolution says in part.
As at the period of the 34th Ordinary Council Meeting held in August 2016, the total outstanding amount due to the Community by the EAC Partner States
according to the Resolution (and a report presented at that meeting) was USD 45,316,812.
According
to a table reproduced within the Resolution, the United Republic of
Tanzania and the Republic of Burundi owed the Community arrears to the
tune of
USD 356,492 and USD 5,606,800 respectively. This is in addition to the
contribution due for the Financial Year 2016/17 pegged at USD 8,378,108
per Partner State.
Republic
of Uganda has paid 26.37% of the current contribution due which equates
to USD 2,209,712 while Republic of Kenya has paid USD 330,306 out of
the USD
8,378,108, which amounts to 3.94%.
Table: Partner States Budgetary Contributions for FY2016/17 to East African Community
|
PARTNER STATE
|
ARREARS (FY'15/16)
|
CONTRIBUTION DUE FY'16/17
|
CONTRIBUTION PAID FY'16/17
|
TOTAL OUTSTANDING
|
|
|
Republic of Kenya
|
-
|
8,378,108
|
330,306
|
3.94%
|
8,047,801
|
|
United Republic of Tanzania
|
356,492
|
8,378,108
|
-
|
0.00%
|
8,734,599
|
|
Republic of Uganda
|
-
|
8,378,108
|
2,209,712
|
26.37%
|
6,168,396
|
|
Republic of Rwanda
|
-
|
8,378,108
|
-
|
0.00%
|
8,378,108
|
|
Republic of Burundi
|
5,609,800
|
8,378,108
|
-
|
0.00%
|
13,987,908
|
|
TOTAL
|
5,966,292
|
41,890,540
|
2,540,018
|
6.06%
|
45,316,812
|
Yesterday,
however, Deputy Prime Minister and Minister of EAC Affairs, Republic of
Uganda tabled the updated document showing improved liquidity position
at
the EAC.
The
document dated October 12, 2016, indicates arrears by Burundi to have
decreased to USD 2.,810,750 besides the contribution due this year of
USD 8,378,108.
The Republic of Kenya has paid 28.28% which amounts to USD 2,369,509
while United Republic of Tanzania has chipped in USD 558,287 which is
about 6.66% of the total amount. The Republic of Rwanda is yet to meet
its quota for this Financial Year.
Table: Partner States Budgetary Contributions for FY2016/17 to East African Community as at 12th October 2016
|
PARTNER STATE
|
ARREARS (FY'15/16)
|
CONTRIBUTION DUE FY'16/17
|
CONTRIBUTION PAID FY'16/17
|
TOTAL OUTSTANDING
|
|
|
Republic of Kenya
|
-
|
8,378,108
|
2,369,509
|
28.28%
|
6,008,598
|
|
United Republic of Tanzania
|
-
|
8,378,108
|
558,287
|
6.66%
|
7,819,820
|
|
Republic of Uganda
|
-
|
8,378,108
|
2,209,712
|
26.37%
|
6,168,396
|
|
Republic of Rwanda
|
-
|
8,378,108
|
-
|
0.00%
|
8,378,108
|
|
Republic of Burundi
|
2,810,750
|
8,378,108
|
-
|
0.00%
|
11,188,858
|
|
TOTAL
|
2,810,750
|
41,890,538
|
5,137,508
|
12.26%
|
39,563,780
|
The Council of Ministers however has a decision that all Partner States should clear all outstanding balances by December 2016.
According to Hon Pareno, the Assembly has on several occasions posed priority
questions as to the dire financial status of the Community.
“In
both January and March, 2016, Hon. Dora Byamukama posed questions on
the financial status of the Community and the Chairperson of Council of
Ministers
in responding to these questions was quick to assure the Assembly that
the Partner States would meet the set deadlines for their contributions,” she noted.
At
debate time, Hon Nancy Abisai said the Community was undergoing a rough
patch and added there was need for further commitment by Partner
States,
“As
politicians, we have a duty to bring to the attention of the Community
when things are not working. It is good for the EAC (Organs and
Institutions)
to pronounce itself on the matter. We need to be sure that the
activities of the Assembly shall be held”, she said.
Hon
Susan Nakawuki remarked that it is not the intention of EALA to have a
Partner States suspended since none had been in arrears for 18 months
and said invoking
Article 146 of the Treaty may be inappropriate.
The
legislator said that Committees had failed to achieve their work
targets due to funding gaps. She maintained that it was impossible for
the Community to
grow at zero per cent increase per year given the progress and dynamism
of the Community.
Hon
Jeremie Ngendakumana said an important portion of the budget was funded
by Development Partners and said the Community was at risk of collapse
should they
withhold their portion.
“The contribution by the Partner States should therefore be timely and be considered as a priority”,
he said. This should be within the regulations as pertained by the
Financial Rules and Regulations (Regulation 23) of the Community, he
added. Hon Ngendakumana termed the Motion a wake-up call and said it is
necessary for the Partner States to be fully paid
up six months from the date due.
Hon
Bernard Mulengani said as an oversight body, EALA needed to point out
areas that are not handled well and improvements made. He said the
issue of gratuity
should be clarified and that sanction of the same was improper. The
same matter on utilization of the gratuity was alluded to by Hon AbuBakr
Ogle.
The
Secretary General, Amb Liberat Mfumukeko confirmed the gratuity account
was intact and that EAC account has received close to USD 5 Million
dollars over
the last two weeks.
The
Secretary General assured the August House that the EAC had regularly
written letters and visited the Partner States to request for remission
of funds.
“I thank the Partner States for responding affirmatively to our requests despite challenges Partner States are facing”,
he said.
Amb
Mfumukeko said his administration had also actively re-engaged with the
Development Partners and told the House that three agencies had in fact
deposited
funds into the EAC Accounts.
“I
have been to Brussels and to Nairobi in a bid to assure the partners
that the reform agenda is back. We have also signed a few agreements
that is duly
supportive of the integration agenda”, Mr Mfumukeko said.
Hon
Peter Mathuki reiterated it was the responsibility of the Assembly to
oversight the Community and this entailed in ensuring its programs are
undertaken.
“The
Secretary General has given a commitment that there shall be funds to
undertake the activities of the EALA and the Community. This is
fundamental,”
he said.
On his part, Hon Martin Ngoga, affirmed the EAC was a leading regional economic bloc according to a number of analysts.
“We have been exemplary and must do so even when it comes to sustainability. There needs to be seriousness in managing the affairs and it should be looked at from a bigger dimension. Currently, the state of affairs is sad, we have a big agenda which we cannot implement”, Hon Ngoga said.
Others
who rose in support were Hon Yves Nsabimana, Hon Valerie Nyirahabineza,
Hon Dora Byamukama and Hon Sarah Bonaya. Others were Hon Mukasa Mbidde
and Hon
Emmanuel Nengo.
The
Second Deputy Prime Minister and Minister for EAC, Rt Hon Kirunda
Kivejinja assured the House the Council of Ministers was committed to
ensuring the obligations
of the Partner States are met.
Hakuna maoni:
Chapisha Maoni