The East African Community Secretariat will have to borrow $3.38 million from its General Reserve Fund to pay salaries and suppliers after member states delayed remitting their share of the budget. The sectoral Council of Ministers responsible for EAC Affairs and planning, in their meeting held from August 21 to 25 in Arusha, directed the Secretariat to present to the Finance and Administration Committee the request for funds for approval. The money will be refunded immediately the remittances are effected by the partner states. The Council’s report says that a number of EAC institutions and organs are unable to meet their financial obligations due to the delays in remittance by the partner states. “Late contributions or no contributions by partner states is a constraint to the smooth operations of the community,” said the ministers. “The Sectoral Council of Legal and Judicial Affairs should have their input in the proposed sanctions to the partner states who do not remit their contributions or delay to do so.” The council also raised concerns that following the deposit of instruments of ratification by South Sudan to join the community, it was supposed to pay $6,715,064 for the 2016/2017 financial year but the amount was not appropriated by the East African Legislative Assembly (EALA) and neither has South Sudan paid. READ: Funding for EAC secretariat drops by $12m According to the provisions of the EAC Treaty, the budget of the community is supposed to be contributed equally by all the partner states. From the 2016/17 budget,...
Cash-strapped EAC raids reserve fund
Posted on: September 4, 2017
Posted on: September 4, 2017