EALA Adopts Audited Accounts report
EALA has today debated and adopted the Report of the Committee on Audited Accounts. Debate on the Report which was presented to the House by the Chairperson of the Accounts Committee, Hon Straton Ndikuryayo last week on Thursday, was suspended by the Speaker, Rt. Hon Margaret Nantongo Zziwa to allow Members to study it further.
The Report notes that currently, the EAC Secretary General has a minimal supervisory
role over the EAC Institutions which include inter alia the
Civil Aviation Safety and Security Oversight Agency (CASSOA), Lake
Victoria Fisheries Organisation (LVFO), Lake Victoria Basin Commission
(LVBC) and the Lake Victoria Environment Management
Programme 11 (LVEMP11).
It therefore calls for the amendment and
harmonization of legal instruments to comply with the provisions of
Article 67(3) of the EAC Treaty to allow for more engagement by the
Secretary General. At the same time, there is need to
elevate the Monitoring and Evaluation Unit into a directorate and to
further develop a strategy for monitoring of performance.
The
Accounts Committee further reveals that the EAC has funding gaps owing
to faulty
funding mechanisms and recommends for the need to comply with the
funding obligations in a timely fashion and manner. The EAC Council of
Ministers is further urged to direct the relevant EAC Organs to stop
forthwith, the use of General Reserves unless,
otherwise approved by relevant authority.
Hon
Ndikuryayo’s Report further delved into a number of financial and
administrative
issues including internal controls and accounting systems, review of
ICTs and integrated systems and human resource management and offered
various recommendations.
The Report enumerates other concerns and the shortcomings,
and cites poor assessment of accommodation needs and space and
unsatisfactory finishes in some parts of the recently completed EAC
Headquarters and the non- implementation of Treaty provisions.
On Resumption today, Members called for speedy completion of the institutional review and the full
implementation of the audit Reports.
Hon
Yves Nsabimana said there was need for the Council to allocate EALA
more time to review the Report of the Committee. He urged the House
to request for an audit on investment and value for money issues in
order to assess the feasibility of investments and decision making.
Hon Shy-Rose Bhanji lamented that insufficient funding and understaffing were factors that could hamper progress within the EAC.
The legislator urged the Council to urgently recruit the necessary staff.
She
called for efforts to fight the water hyacinth currently choking East
Africa to enable the waters of Lake Victoria to be useful to the
citizens
of the region.
Hon Pierre Celestin Rwigema disclosed that the procedures of recruitment were lengthy and cumbersome.
“There are gaps currently occasioned by resignations and
natural attrition but they are yet to be filled affecting the overall
performance of the Community”, he noted.
Hon
Susan Nakawukki said it was improper for the institutions to borrow
from the gratuity fund for their own use and to repay back when Partner
States fulfilled their obligations. The legislator cited the Lake
Victoria Basin Commission (LVBC) as one of the institutions borrowing
from the said fund.
Hon Nakawuki urged the Inter-University Council of East Africa to improve its accounting operations and systems.
The legislator indicated that institutional memory was absolutely key.
“Currently, the contracts of the Officers (Clerks) within the
Office of the Clerk shall end at the same time and this may throw the
Assembly into shambles.
We should consider performance based contracts where we can renew
the contracts of those who have performed above expectations as opposed
to the current fixed period of two- five year terms”, Hon Nakawuki stated.
Hon Jeremie Ngendakumana called for more scrutiny of the Organs and Institutions of the EAC. “The financial
audit of any institution is actually the mirror and we must pay due diligence to this fact”, he remarked. He called on the Council of Ministers to elaborate on the position of EADB as an institution.
“I thought we as the Community need to have some ownership by way of finances as well”
The
Counsel to the Community (CTC), Hon Wilbert Kaahwa, however reiterated
that the EADB was an institution of the EAC and that the audit Committee
could in fact, audit the Bank. The CTC clarified that the
EAC did not have any shareholding at the moment but that its Membership
was based on the previous relationship (original EAC).
Also rising in support of the Motion was Hon Christophe Bazivamo, Hon Mike Sebalu, Hon Bernard Mulengani.
The
Chair of the Council of Ministers, Hon Shem Bageine took cognizance of
the recommendations of the Report and said the Council would spare
no efforts to ensure they were implemented expeditiously.
On the Supervisory roles of the Secretary General as the Chief
Accounting Officer, the Minister noted that all Institutions would
henceforth furnish the Office of the Secretary General with periodic
reports.
The Minister was categorical that all Partner States had been directed to submit all outstanding arrears by 31st December 2013 in
order to meet the funding gaps in some of the Institutions.
The Council he remarked had initiated a study for alternative financial mechanism.
Hon Bageine said his Council would further expedite the filling of vacant posts even as the Institutional Review progresses.
On
VAT refunds, the Minister assured the House that it had directed the
EAC Secretariat, Organs and Institutions to liaise with the Ministries
in the Partner States to acquire the tax exemption certificates.
He supported the use of uniform accounting software and maintained the integration system would be finalized by March 2014.
The
Minister also said the Community was aware of future expansion plans
and that the architectural drawings of the EAC Headquarters had taken
the matter into consideration.