EAC slashes office budget by Sh1.35bn after donor pressure
Under the austerity measures announced in June 2016, no more than two representatives per country are allowed to travel on the EAC budget to attend technical meetings. FILE PHOTO | NMG
The slashing of budget signals continuation of the belt-tightening measures launched two years ago amid donor pressure.
That huge drop has contributed immensely in lowering the cost of regional integration, to Sh9.98 billion for next financial year, down from Sh11.01 billion in the current fiscal year.
The East African Community (EAC) is seeking to cut the cost of running its secretariat by Sh1.35 billion from July 1, signalling continuation of the belt-tightening measures launched two years ago amid donor pressure.
The Sh9.98 billion ($99,770,716) budget for 2018/2019 tabled in the East African Legislative Assembly (Eala) on Tuesday reduces the Secretariat’s budget to Sh4.67 billion, down from the current financial year’s Sh6.02 billion.
That huge drop has contributed immensely in lowering the cost of regional integration, to Sh9.98 billion for next financial year, down from Sh11.01 billion in the current fiscal year.
“The EAC is further expected to streamline its operational systems to achieve the desired level of efficiency, accountability, and value for money,” said Dr Ali Kirunda Kivenjija, Uganda’s Deputy Prime Minister who chairs the region’s council of ministers.
The bloc has been on a penny-pinching mission in the last two years after key donors questioned its spending record. Donors foot at least 60 per cent of EAC’s annual integration bill.
Under the austerity measures announced in June 2016 by Secretary-General Liberat Mfumukeko, no more than two representatives per country are allowed to travel on the EAC budget to attend technical meetings.
No more than three staff are allowed to attend such meetings, which are not allowed to drag beyond four days.
The changes also decreed that at least 25 per cent of the EAC meetings must be held via video conferencing, with the remaining being held in the free-of-charge government-owned facilities.
Where technical meetings must be held in commercial buildings, the payment must be in line with the “corporate” conferencing and accommodation rates negotiated by the bloc in each partner state.
Dr Kivenjija said the spending priority for the next financial year will focus on enhanced movement of goods, services and labour in the region.
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