Press Release

Secretary General institutes expenditure rationalisation reforms in EAC Organs and Institutions

The Secretary General of the East African Community, Amb. Liberat Mfumukeko, has instituted stringent expenditure reforms in the East African Community Organs and Institutions with immediate effect.

Amb. Mfumukeko, who took over the mantle from Amb. Dr. Richard Sezibera as the Chief Executive of the regional organization on 26th April, 2016, noted that the EAC Organs and Institutions had been experiencing liquidity challenges as a result of delays in disbursement of contributions by both the Partner States and Development Partners.

Article 67 of the Treaty for the Establishment of the EAC says that the Secretary General shall be the Accounting Officer of the Community.

In a Financial Management Circular dated 18th May, 2016, aimed at addressing the financial crunch at the Community, Amb. Mfumukeko says the EAC management has introduced cost cutting measures and reforms on the key expenditure items to be implemented immediately in all the Organs and Institutions of the Community.

The Secretary General said the measures and reforms are a product of intense consultations he has had with Executive Staff, Heads of Institutions, Directors, Professional and General Staff of the Community over the past few weeks.

Some of the measures include the following:

Technical Meetings Involving Delegates from Partner States and EAC Staff

The duration of meetings shall be rationalised. Technical meetings shall be conducted for a period not exceeding Four (4) working days. The number of delegates from Partner States facilitated through the EAC Budget shall not exceed two (2) from each Partner State; for each meeting, correspondence shall be sent to Partner States indicating that delegates should be nominated from relevant sectors who can actively contribute to the success of the meetings and that they consult widely with relevant stakeholders in Partner States prior to coming to meetings.

In order to reduce conference costs:

(i) Where possible, the use of free of charge Government-owned facilities should be encouraged;

(ii) The Procurement Unit shall negotiate for corporate conference and accommodation rates in each Partner State.

The EAC delegations to technical meetings shall not be more than three (3) Members of Staff.

Preparation for and facilitation of Policy (Council and Sectoral Council) meetings held outside duty station:

(i) There shall be preparatory meetings involving all staff with agenda items at the Headquarters, to review background papers and brief the EAC representatives to the said meetings;

(ii) Participation in Policy meetings: Directors and Technical Officers shall facilitate the session of Senior Officials only, while Directors, Heads of Institutions and Executives, shall participate in the Coordination Committee (Permanent/Principal Secretaries session) and Ministers/Cabinet Secretary session. The team facilitating the rapporteur is required throughout the duration of the meeting.

For Meetings involving Partner States’ delegates and staff held out of station, but within a radius of less than 150km of two (2) hour's drive from the duty station, the travel days for the staff shall be the actual first and last days of the meeting.

Meeting involving EAC Staff only or with Consultants

Meetings involving staff members only or with consultants, shall be held at EAC premises using conference halls/meeting rooms within the duty station.

Where an assignment/activity/training/retreat require more concentration, justification shall be provided to support taking the staff members outside the duty station. This decision shall be taken by the Secretary General or the officers with sub-delegated authority of the accounting officer i.e. the Deputy Secretary General in charge of Finance and Administration, the Clerk of the East African Legislative Assembly (EALA), the Registrar of the East African Court of Justice (EACJ) and Heads of Institutions.

Enhancing Staff Presence at Duty Station

Members of staff will only be allowed to be away from their respective duty station(s) for not more than 50% of their time. Exceptions shall be considered on individual basis provided that the cumulative number of days for a particular month does not exceed 65% of the time. These ceilings exclude days for participation in EALA and EACJ sittings.

Travel Clearance by the respective Director and DSG, or equivalent authorities in other Organs and Institutions, prior to travelling, is mandatory.

Consultancy Expenses

Prior to budgeting procurement of consultancies, which are not implementing a particular Council directive, a request shall be submitted to Management and considered by a Multi-disciplinary Advisory Committee. This is to save expenditure on short-term studies, trainings, which can be undertaken or facilitated by the EAC Professional Staff.

Video Conferencing

At least 25% of EAC meetings shall use video conferencing facility. EAC shall invest in improving video-conference facility, both at Secretariat and Partner States level, to accommodate as many meetings as possible, at the same time.

Air Tickets

As meetings are well planned on the EAC Calendar of Activities, Meeting Forms indicating the budget line to be charged shall be issued one month in advance and tickets two weeks prior to the date of the meeting, to avoid high costs that may arise from late bookings.

All air tickets shall be booked and issued based on the most direct route.

Per Diem Rates Applicable under Development Partners' Support to EAC

The Partnership Fund MoU between EAC and Development Partners shall be amended to reflect the application of Travel Policy as contained in the PRAG (EU Per diem Rates), with effect from 1st July, 2016.

During the negotiation of financing agreements with Development Partners, EAC shall be flexible to apply Development Partners’ Travel Policies with a view to attracting more support. Thus there will be No Top Up claim by a staff when implementing an activity funded by Development Partners under these terms.

A Projects Coordination Unit will be established by 1st of July, 2016 to enhance effective communication and reporting to Partner States, EALA and Development Partners. This will also ensure that EAC has a one stop desk and repository for information on all projects. The unit will ensure joint planning and budgeting, timely and coordinated implementation, reporting and auditing of projects.

Dormant Projects Supported by Development Partners

The following shall apply in order to avoid EAC incurring recurrent costs on behalf of Development Partners:

a) The contract of Project Staff will be tied to the life of the specific project except where the project runs for more than five years, the contract of the staff shall be broken into five years and renewable once;

b) In the event a Development Partner withdraws support to a running project, the contracts of the staff under this project shall be terminated, and;

c) Where a project faces delayed disbursements for more than three (3) months without communication for the delay or commitment on further disbursement from the Development Partner, the contracts for staff under this project shall be terminated.

All Staff of EAC Organs and Institutions are under the obligation to enforce the implementation of these new measures.

Founding First Ladies address EALA, Call on EAC to fortify integration

In a memorable occasion for the East African Legislative Assembly, founding First Ladies of the EAC late yesterday delivered motivating addresses at a Special Sitting held in Arusha.

Looking graceful yet resplendent, Kenya’s Mama Ngina Kenyatta and Uganda’s Mama Miria Obote brought back the good old memories of the first EAC and challenged EALA Members to ensure the future of integration is both guaranteed and realised. The United Republic of Tanzania’s Mama Maria Nyerere sent her apologies. Her family was however represented at the occasion of the Special Sitting by Hon. Makongoro Nyerere, who is an elected Member of EALA.

First to take the podium was Mama Miria Obote who was emphatic that the EAC must re-energise itself and strive to be a fully functioning integration bloc. The former First Lady called for prioritisation of economic investment projects including oil refineries, the Standard Gauge Railway, agricultural research, food security and climate change.

The founding First Lady called for creation of employment opportunities especially for the youth in the region.

“This can be achieved through joint or common East African Community investments such as the ongoing projects between Uganda and Tanzania for the proposed pipeline, Uganda, Rwanda, Tanzania and Kenya for the Standard Gauge Railway; Kenya, Ethiopia and the new South Sudan for the Lamu Port. The clear call should be an intensification of efforts across various fields to make our region more integrated”, H.E. Mama Obote said.

She further called for the region to move faster to have an integrated syllabus and curriculum to stabilise the labour market within the EAC.

“For instance, a majority of Ugandans have never learnt proper Swahili. We are now learning proper Swahili in schools and in the public engagement. This is the best way towards integration”, Mama Obote said.

Mama Miria Obote was full of praise for the EALA for recognising the contribution of the founding families.

“We are very grateful for EAC and EALA for recognising the contribution of our founding Fathers, Comrade Mwalimu Julius Nyerere, Mzee Jomo Kenyatta and Comrade Dr. Apolo Milton Obote and we are also thankful to the Almighty God for having kept us alive as former First Ladies of the Independent East African Community, Mama Miria Nyerere, Mama Ngina Kenyatta and I”, Mama Obote said.

She further appreciated the Governments of the United Republic of Tanzania, Kenya and their people who as the original Members of the East African Community, understood the social-political challenges of Uganda.

“They welcomed, sheltered and catered for our people as political refugees. This spirit of togetherness was extended to Rwanda, Burundi, the Democratic Republic of Congo and the new South Sudan. Not only for receiving and hosting refugees but also for walking the extra mile and facilitating peace talks, for example”, H.E. Mama Obote said.

Mama Ngina Kenyatta informed the Sitting that EAC’s founding fathers had “walked and worked tirelessly” in anticipation of unity of the region.

“In 1967, all three of us were witness to the establishment of a Community that spoke to that shared sentiment. The East African Community was built on the understanding that our nations and our peoples were stronger together. I request you to keep the hope of the founding fathers alive and to ensure that unity in the region is achieved”, Mama Ngina said.

“It is a credit to your hard work and persistence—and the hard work and persistence of your respective Governments—that today, that Community is more vibrant and active than ever”, the former First Lady added.

The first lady informed the August House that the region was on the verge of realising the dream of integration. She challenged EALA and the current EAC to strive to ensure disunity and mistrust was removed in a bid to strengthen integration.

Hon Miria Obote was accompanied by her son, Hon. James Akena while H.E. Mama Ngina Kenyatta’s entourage consisted of her family members including Mrs Wambui, Kristina Pratt, Selina Renee Pratt, Members of the Parliament of Kenya, women leaders from Central Kenya and representatives of the Mount Kenya University.

Welcoming the founding First ladies of Independence, Speaker of EALA, Rt. Hon Daniel Fred Kidega, lauded them for their contribution to the integration process.

“We are happy that you still show leadership in your own rights and continue to be involved in numerous humanitarian causes throughout the EAC region much akin to your active and prolific years when you worked for political and social justice and advocated for a wide range of human rights issues”, the Speaker said.

“Today, we celebrate you. You are walking encyclopedias in your own rights and repositories of information, who despite ageing gracefully, still credit, follow developments of this great region, and are supportive of the EAC unto this day. Late last year for example, Mama Ngina Kenyatta met with the EALA Kenya Chapter in Gatundu, Kenya, while in August 2014, a group of EALA Women Members paid a courtesy call on Mama Maria Nyerere in Dar Es Salaam. Mama Obote on her part, is still involved in the political spheres in Uganda and continues to follow developments at the EAC closely from Uganda House in Kampala”, the Speaker added.

The Speaker remarked that the integration process was on course and that it was stronger.

“Indeed, in retrospect, the collapse of the Community in 1977 was a sad and catastrophic affair, a great loss in opportunities and setback for the region. But today, I stand here convinced that the steps we have taken as a Community since its re-establishment are fundamentally underpinned on the Treaty for the Establishment of the EAC and we are on course for full integration of the region”.

The Assembly at its Sitting 5th Meeting of the 4th Session on March 16th, 2016, passed a Resolution recognising the role you all continue to play in galvanising East Africa in the integration process and in the service of East Africans as “informal Institutional Memory”. The Resolution was moved by Hon. Mumbi Ngaru.

EAC tables US$ 100 Million budget to EALA

The EAC today presented Budget estimates for the Financial Year 2016/2017 totaling $101,374,589 to the East African Legislative Assembly sitting in Arusha. Deputy Minister for Foreign Affairs and East African Co-operation, Hon Dr Susan Kolimba presented the Budget speech to an attentive House on behalf of the substantive Minister and Chair of the EAC Council of Ministers, Hon Dr. Augustine Mahiga.

The 2016/2017 Budget is a drop down from US$110,660,098 Million presented to the House in the previous Financial Year. The Budget prioritizes the full implementation of the EAC Single Customs Territory, enhanced implementation of the EAC Common Market Protocol especially additional commitments and interconnectivity of border immigration systems and procedures across Partner States and enhancement of productivity and value addition in key productive sectors.

The budget also takes cognisance of development of cross-border infrastructure and harmonisation of laws, policies and standards in respective sub-sectors, implementation of a liberalised EAC airspace, enhanced implementation a One Area Network in telecommunications and the implementation of EAC Peace and Security initiatives.

According to the Minister, other key specific priorities are strengthening of the legal and judicial systems, enhancement of Information, Communication and Education to promote popular participation of the citizenry in the EAC integration process and promotion of education, science and technology for creative and productive human resources.

The Chair of Council termed the establishment of a policy framework and institutional structures for establishment of the EAC Political Federation as another key priority area in the coming financial year.

The Budget is allocated to the Organs and Institutions of the EAC as follows; East African Community Secretariat (US$57, 872, 785), East African Legislative Assembly (US$16,034,324) and the East African Court of Justice (US$4,286,477).

The Inter-University Council for East Africa shall receive (US$4,553,890), Lake Victoria Basin Commission (US$11,214,708) while US$ 2,131,422 is earmarked for the Lake Victoria Fisheries Organization. On their part, the East African Science and Technology Commission shall receive (US$ 1,161,438), East African Kiswahili Commission (US$ 1,134,542) and the East African Health Research Commission (US$ 1,397,438). The East African Competition Authority is to benefit from US$587,565 in the Financial Year.

The 2016/2017 Budget is to be financed by Partner State contributions (US$47,565,377) compared to US$ 47 566,973 in the current Financial Year; Development Partners support (US$46,717,601) which is a significant drop from US$ 58,555,635 of the previous year. The Member Universities will inject US$ 431, 923, General Reserves US$ 6,354, 248 and miscellaneous revenue US$ 305,440.

The EAC Political Federation is yet a key priority area on the agenda in the coming Financial Year as the mode of the regional Constitution making process commences. The same applies to strengthening of regional and international relations through mobilisation of Partner States’ diplomatic missions and the East African diaspora for effective participation in EAC integration processes and building of multilateral/international networks in pursuit of EAC objectives.

The Minister highlighted a number of achievements registered in the Financial Year 2015/2016, notably, the upscaling of the Single Customs Territory (SCT) through finalisation of operational instruments of the business manuals, deployment of SCT Monitoring and Evaluation tools and deployment of staff in some Partner States. The Minister remarked that 10 out of the 15 One Stop Border Posts were already operational.

The chair of the Council of Ministers further stated that the EAC Elimination of Non-Tariff Barriers Bill (NTB), 2015 passed by EALA was undergoing assent and would spur business and enhance the free movement aspects. The Minister told the House that National Monitoring Committees on NTBs and the EAC Regional Forum on NTBs had continued to spearhead the elimination of NTBs affecting Intra-EAC trade.

According to the Minister, the Council of Ministers further appointed Commissioners to the EAC Competition Authority. “The Authority is set to commence operations in the financial year 2016/17 and it will act as a one stop centre in the enforcement of provisions of the EAC Competition Act. The Secretariat has finalized preparations for the operationalization of the East African Competition Authority”, the Minister said.

In order to strengthen the Monetary Union, the Minister said draft Bills for the establishment of the East African Monetary Institute and the East African Statistics Bureau were been developed and negotiated by the Partner States. The Minister informed the House that in a bid to harmonise tax regimes, the EAC Secretariat had continued with efforts for closed co-ordination of fiscal policies with focus on critical areas for harmonisation.

“So far, domestic Tax Harmonization Policy has been drafted by the Secretariat and is being peer reviewed by the International Monetary Fund (IMF) before submission to the relevant Organs of the Community for consideration” the Minister said.

Under Infrastructure development, the Minister informed the House of on-going construction works especially on the Northern Corridor. The Minister said the Arusha-Holili/Taveta-Voi road project and the second multinational road projects in the region had commenced.

“In addition, the Secretariat signed a grant agreement amounting to US$ 2.68 million in November 2014 with the AfDB through the NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) for the feasibility studies and detailed designs of two key links for the Republics of Rwanda and Burundi to the Central Corridor. These are the 250km long Nyakanazi – Kasulu – Manyovu road in Tanzania linking to the 78km long Rumonge –Bujumbura road in Burundi, and the 92km long Lusahunga – Rusumo road in Tanzania linking to the 70km long Kayonza – Kigali road in Rwanda”, the Minister said.

Hon Dr Kolimba further remarked that progress with regards to the construction of the Mombasa-Nairobi Standard Gauge railway stood at approximately 70% as at March 2016.

On Industrialisation and SMEs Development, the Chair of Council said that the EAC had developed a draft Industrialisation Bill and that it was awaiting legal scrubbing and input before it is presented to the Sectoral Council on Legal and Judicial Affairs for consideration.

Within the Energy Sector, the Minister informed an attentive House that implementation of power projects under the East African Power Master Plan had resulted in the addition of 425 MW over the last two years raising the region’s installed capacity from 4,468 MW to 4,893 MW against a peak demand for 3,326 MW for the inter-connected system last year.

In the Tourism and wildlife sector, the Minister informed the House that a regional strategy to combat poaching and illegal trade in wildlife and wildlife projects was been developed by the Secretariat.

“In the next financial year, 2016/17 the priorities for the Tourism and Wildlife sector will include, among others, developing guidelines for smooth cross border tour operations, implementation of the regional strategy to combat poaching and the illegal trade in wildlife and wildlife products, finalizing the development of a tourism legal framework, training of more hotel assessors from Partner States and transferring training program of hotel assessors to training colleges in hospitality in Partner States”, the Minister remarked.

On health matters, the Minister informed the House of progress in promotion of integration of health sector and interventions to address challenges facing the sector in line with Article 118 of the Treaty.

“Mr. Speaker, in order to strengthen human resource for health and ensure right skills and knowledge is provided by the various public and private sector universities and other institutions of higher learning in the fields of medicine, medical laboratory sciences, nursing, pharmacy, dentistry and other health professions, regular joint inspections have been conducted by EAC Secretariat in collaboration with the EAC Partner States’ National Health Professional Boards and Council using regional guidelines and checklists developed for the inspection and mutual reciprocal recognition”, the Minister said.

On the Common Market, the Chair of Council remarked that the region was keen to ensure implementation of the Protocol. “Mr. Speaker, this August House may be pleased to note that during the 17th Ordinary Sitting of the Summit of EAC Heads of State, the new International East African Electronic Passport was launched. The East African e-Passport represents; the ordinary; official/service and diplomatic Passports. The introduction of the new e-Passport is a milestone that will see our Partner States join global initiatives where over 100 countries are implementing the electronic passports”, the Minister said.

“The Partner States are expected to issue the new international EA e- passport in to their citizens in January 2017 and make necessary arrangements with relevant authorities to implement the passport”, he added.

The Minister remarked that consultations with stakeholders in the employment subsector such as the East African Trade Union Confederation (EATUC) and Employers’ Associations have been undertaken on the process of harmonization of the work/residence permit fees pursuant to Regulation 6(9) of the East African Common Market (Free Movement of Workers) Regulations Annex II and regulation 6(5) of the East African Community Common Market (Right of Residence) Regulations.

On matters of political affairs, the Minister informed the House of steps been taken to lay ground for political integration. The 31st Meeting of the EAC Council of Ministers in May 2015, the Minister said, established a Sub-Committee of Ministers Responsible for EAC Affairs to consider the concept note, Terms of Reference (ToRs); Roadmap for the Constitution Making Process, and; to determine the Model of the EAC Political Federation for consideration. The Sub-Committee met in February 2016 and made a report to the Council on the basis of which the Council reported to the 17th Ordinary Meeting of the Summit. The report was to the effect that the Partner States had generated convergence on a Confederation as the Model of the East African Federation.

The Minister said that the Community was keen to ensure regional peace and security initiatives are realized. The sector players have a critical role in ensuring the facilitation of the enjoyment of freedoms and rights guaranteed by the Treaty. The sub-sector continued regular consultations towards joint action against Terrorism, Small arms and Light weapons trafficking, human and narcotics trafficking, theft of motor vehicles and other cross border crimes. To this extent a training manual and operating procedures on public order management with a human rights perspective at the 14th Eastern Africa Police Chiefs Cooperation Organization – Annual General Meeting (EAPPCCO- AGM) was launched, the Minister informed the House.

“The next financial year will be dedicated to conclusion of another three harmonized Standing Operating Procedures remains an omnipresent threat to the enjoyment of these freedoms and rights. Attention will be paid to transnational crimes that feed terrorism and terror infrastructure”, he said.

In a bid to improve financial management and reporting, the Minister remarked that the Secretariat has rolled over the Sun systems to all EAC institutions which were prior to, using different financial management systems. The Budget Management System (BMS) which was developed and installed was as well rolled out to all EAC Institutions, making it easy to prepare Annual Operational Plans, MTEF budget and monitor its execution. As a result of these improvements, budgets and financial reports are timely, well prepared and submitted, the Minister said.

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