Assembly calls on Council of Ministers to fastrack Partner States’ remittances to avert crisis,

wants defaulters sanctioned.

East African Legislative Assembly; June 30^th, 2020: Arusha, Tanzania: The East African Legislative Assembly has once again called for urgent need for remittances of the financial obligations by the Partner States.   The Assembly late yesterday, passed a resolution moved by Hon Abdikadir Aden, urging the Council of Ministers to direct Partner States to immediately and consistently remit their financial contributions to the Community. Consequently, EALA is urging the Council of Ministers to recommend to the Summit of EAC Heads of State to sanction Partner States that are in default of y.   making contributions as required by Articles 132(4) and 146 of the Treaty for the Establishment of the EAC.

In a resolution moved without notice under Article 30(L) of the Rules of Procedure, Hon Aden decried the lack of adequate finances noting that the Community continued to grapple with challenging times. The legislator said the matter of sustainable funding mechanism was critical and that all options should now be explored to ensure the Community is and remains stable.

Hon Aden informed the House that although EAC Financial Rules and Regulations provide that financial contributions from each Partner State shall be considered due on the 1^st day of July in each financial year and remitted within the first six months of the same, Partner States continue to default and some remain in arrears throughout the financial year.

Hon Aden tabled the latest contributions by the EAC Partner States. “I am aware that as of 10^th June, 2020, the status of contributions and total outstanding obligations of the Partner States (Overall outstanding contribution to the EAC main budget, Inter University Council of East Africa -IUCEA and Lake Victoria Fisheries Organization -LVFO) is as follows: Republic of Burundi: USD 15,089,355; Republic of Kenya, USD (1,975); Republic of Rwanda: USD 2,788,429; Republic of South Sudan: USD 27,803,700; United Republic of Tanzania: USD 4,201,845; and Republic of Uganda: USD 1,598,670”, the legislator told the House.

Hon Aden remarked that the activities of the House as well as emoluments had been halted by lack of timely remittances.  “Given the situation we face now due to the Covid 19 pandemic, availability of funds is now more crucial than ever”, he said.

Hon Aden also informed the House that with two days to go to the end of the Financial Year 2019/20, the EAC Council of Members was yet to table the budget estimates for the next Financial Year 2020/2021 as stipulated for under the EAC Budget Act, 2008.  “The Committee on General Purpose needs 30 days to look at the estimated budgets before the Budget speech is read.  We are entering unprecedented times, given that two days to the end of the current Financial Year, there are no budget estimates before the House”, he remarked.

At debate, Hon Dr Abdulla Makame said the operations of the Community were gravely affected by the delayed remittances. “If one Partner State delays or withholds remittances, then there is a subsequent shortfall and repercussions felt.  This is unfortunately becoming the new normal and there are now activities been suspended owing to lack of funds”, he said.  

“Key Bills such as the East African Monetary Institute Bill and the EAC Statistics Bill, passed in recent times by the Assembly, are really on paper, given the Community is not financed”, he added. “A temporary proposal to borrow from the gratuity fund may partially solve the problem, but shall be eroded shortly, further challenging instances where staff complete their contracts, he added.

Hon Paul Musamali said EALA faced serious challenges occasioned by delayed remittances. “The Chair of Council should address the welfare matters urgently,” he said.  “In the long run, to solve all problems, we must embrace a sustainable financing mechanism”, Hon Musamali added.

Hon Florence Jematia, said the Assembly undertook to continue with work despite the hardships faced while Hon Kasamba Mathias appealed to the Council of Ministers to lay on the table a proposal of how the Assembly can pass the budget, given the Financial Year comes to an end on June 30^th, 2020.

Hon Akol said Council of Ministers should in the spirit of comradeship address the delayed remittances especially by Republics of Burundi and South Sudan.

Hon Dr Oburu Oginga termed the Community’s Organs and Institutions as interdependent and said the failure to adopt the sustainable funding mechanism was worrisome. “Other regional economic communities within Africa such as ECOWAS and AU, are already implementing the mechanism”, we should embrace sustainability as well”, the legislators said.

Hon Maryam Ussi on her part, said the work of preparing the budget estimates lies squarely with the Chief Executive Officer of the Community, in this case, the Secretary General.

Hon Gideon Gatpan Thoar, said the Assembly had taken it upon itself to follow up with the requisite authority, given the current inaction, while Hon Ndangiza Fatuma said political will was key to realize the achievements of the Community.  “Let us borrow a leaf from the AU on the matter of sustainable financing mechanism to ensure stability of the Community in a focused manner”, she said.

Hon Jean Marie Muhirwa said Republic of Burundi was committed to paying its dues – but called for measures that enhance unity. The Council, he stressed, needs to meet urgently to discuss and diplomatically unlock the impasse of non-remittances.  “The political will is indeed there, however we have challenges”, the legislator said.

Others who supported the debate are Hon Wanjiku Muhia, Hon Eng Mohammed Mnyaa, and Hon Denis Namaara.

 In response, the Chair of the Council of EAC Ministers, Hon Nshuti Manasseh, reiterated the meeting by Council of Ministers expected next week meet to unlock the impasse on dues owed to EALA Members and staff. “The Council has taken the item seriously and it will meet next week to arrive at consensus on the matter”, the Minister stated.

EAC Secretary General, Hon Amb Liberat Mfumukeko said both issues of the outstanding arrears owed to EALA and that of tabling the budget were on the agenda of the Council of EAC Ministers.

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For more Information, contact: Bobi Odiko, Senior Public Relations Officer;
East African Legislative Assembly; Tel: +255-27-2508240 Cell: +255 787 870945+254-733-718036; Email:   bodiko@eachq.org This e-mail address is being protected from spambots. You need JavaScript enabled to view it   Web: https://www.eala.org Arusha, Tanzania