EALA ADOPTS REPORT OF THE AUDITED ACCOUNTS FOR THE FINANCIAL YEAR ENDED JUNE 2014

EALA has today debated and adopted the Report of the Committee on the Audited Accounts of the EAC for the Year ended 30th June 2014.

During debate, Members called for improvement on the financial performance of the Community, review of procurement procedures and adherence to the set regulations.  They further want the absorption of funds by the Community enhanced and reimbursement of all unclaimed Value Added Tax (VAT) followed.

The report presented to the House by the Chair of the Accounts Committee, Hon Jeremie Ngendakumana, covers the Committees findings arising from the report of the Audit Commission and is divided into seven main parts.  It includes the audit findings on the financial statements of the EAC Secretariat and its Organs and Institutions.  They include the Lake Victoria Basin Commission, the Lake Victoria Fisheries Organisation and the Inter-University Council for East Africa (IUCEA).  The Audited Financial Statements of the Civil Aviation Safety and Security Oversight Agency (CASSOA) are also presented.

Hon Jeremie Ngendakumana presents the Report of the Accounts Committee to the House.

The recommendations state that all planned activities should ideally be carried out within the agreed timeframe and to avoid further delays in the implementation of planned activities.  The Report further wants follow-up on disbursement of donor funds and calls on the EAC to comply with all requirements concerning funds in time and at all times.

On planning, the Committee is of the view that EAC experienced a slow start in implementing the planned activities during the year especially in the first quarter due to limited financial resources as the percentages of remittances by Partner States were low.  As a result, a number of activities were not implemented in good time.

On Information, Communication and Technology (ICT) matters, the Committee urges the Council of Ministers to ensure the ICT Strategy is implemented at the EAC.  It further wants the Assembly to direct the Council to hire additional staff in the ICT Sector to ensure financial information security of the Assembly.    It also wants due diligence to be undertaken and that EAC adheres to all laid procurement Procedures. 

Hon Shyrose Bhanji takes the floor during debate on the Accounts Report.

In his contribution, Hon Yves Nsabimana called for recruitment of staff to enable effective implementation of tasks.  He further called for the implementation of the decisions and directives of the Council of Ministers.  Hon Nsabimana also cited the operationalization of the Protocols as an area that can be better co-ordinated and said it was time for the EAC to inculcate a system that effectively ensures Protocols are enforced.

Hon Pierre Celestin Rwigema said the Community generally was stable but added that deficiencies could be enhanced by better management of the institutions.

Hon Abubakar Zein said all Organs and Institutions should have mechanisms for compliance to decisions once arrived at.

Others who supported the report were Hon Isabelle Ndahayo who said the EAC needs to bolster its Monitoring and Evaluation component, Hon Adam Kimbisa, Hon Martin Ngoga, Hon Valerie Nyirahabineza, Hon Emmanuel Nengo. Hon Straton Ndikuryayo, Hon Mariam Ussi and Hon Susan Nakawuki also gave a nod to the Report.

Hon Shyrose Bhanji said the report had revealed understaffing as a chronic problem. She cited lack of project reporting as inadequate.  “We also need to abide by the Financial Rules and Regulations”, Hon Bhanji said.

On the pending assent of 22 Bills, Hon Bhanji said the Assembly had employed efforts in passage of the Bills.  “The Council needs to tell us what is the problem”, she said.

Also supporting the Report was Hon Peter Mathuki who said social security of staff was necessary as a statutory deduction.  He remarked that issue of staff privileges need to be harmonized in all institutions across the Partner States.

In his response, the Chair of the Council of Ministers, Hon Shem Bageine reiterated the Institutional Review would be deliberated on and final submissions presented to the Summit when it sits possibly early next year.

“I assure the House, the next Council and subsequent Summit shall take a decision on the matter”, he said.

“It is an important review which will include elevating the status of the Secretariat and political presence in Arusha to finalise matters”, he added.

The Committee further wants the Council of Ministers to address issues of tax exemption within all Partner States.  This is in line with Article 4 Section 1, Sub-section (d) of the EAC Headquarters Agreement with the United Republic of Tanzania which provides for exemption of all taxes.

Under the projects and programmes, the Committee urges the Council to implement the project activities in order to achieve the set goals within the planned period of the project. The projects should also achieve the goals within the planned period of the project.

All unrecovered imprests should also be recovered from the institutions of the Community while it also suggests that the Secretary General be given powers to sanction all staff who contravene staff rules.  

The House also received the Annual Report of activities for the period 2013/2014 that was tabled by the Minister for EAC Affairs, Hon Valentine Rugwabiza.