Report uncovers misuse of funds at EAC

A report on the East African Community (EAC) financial statements has uncovered rampant misuse of funds in the regional organisation and its affiliates.

The anomalies singled out include poor accountability for imprests by the staff and what it termed “unnecessary expenditure of resources”.

It was found out that the Arusha-based secretariat spent about $ 3.4 million during the 2012/2013 financial year on procurement of air tickets alone, an expenditure seen as unjustifiable.

The report, which was tabled before the East African Legislative Assembly (Eala) on Thursday, called on the EAC Council of Ministers — the policy organ of the community — to urgently intervene to curb misuse of the tax payers' money.

"The EAC management should tighten loopholes and rid anomalies in accountabilities for imprest advances," the chairperson of Eala's Accounts Committee, Jeremie Ngendakumana, said during the report presentation.

The report reviewed the EAC financial statements for the year ended June 30, 2013. It is expected to be debated by Eala next week. The regional parliament is currently holding sessions in Arusha.

CONSTRUCTION WORK

The construction works under the EAC were not spared either.

The report found out that "inadequate descriptions" in the Bill of Quantities. It was proposed EAC should have a building policy and procurement manual for the same.

At the East African Court of Justice (EACJ), one of the key organs of the community, a total of $116,000 was paid out as daily subsistence allowance (DSA) during a meeting held outside Arusha.

It is the view of the Eala committee members that the said strategic plan meeting of the court should have been held "in an alternative place that does not require the payment of DSA".

At Eala itself, the committee notes that there were irregular payment of per diems amounting to $ 9,084 to facilitate attendance of funeral committees. The report recommends guidelines on death-related expenditures.

Under the projects, the HIV/Aids project, is reported to have “poorly utilised” budgeted funds, only managing to spend 47 per cent of total funds earmarked for the programme.

INSTITUTIONAL REVIEW

The legislators partly attributed the financial mess at EAC to delays in finalisation of an institutional review of the regional body, which has a dozen organs and institutions under it.

The delay in completion of the review is unnecessary, they observed, noting that it had led to increased expenditure as well as implementing EAC projects and programmes.

The EAC institutional review, aimed to streamline its activities more efficiently and effectively, has been on cards for the last three to four years but not implemented.

"EAC has several unfilled staff positions and to bridge the gap, the management has often been forced to offer short term renewable contracts which has several disadvantages to both the staff and the organisation", the report reads in part.

The Parliamentary Accounts Committee is recommending the filling of the various vacant positions to enable the community to perform according to its expectations.