EAC Secretary General Amb Liberat Mfumukeko addresses the media earlier today- Distinguished Members of the Media;
- My Colleagues from the East African Community;
- Ladies and Gentlemen.
Good Morning
I warmly welcome you to this Press Conference and to the
EAC
Headquarters. This is your home and this Media Centre was set up
purposely to assist you in your work. I highly commend the Journalists
in our region for the wonderful
job they have done so far in articulating the EAC Regional Integration
Issues to the people of East Africa and beyond. In doing so, I wish to
affirm to you that the EAC Secretariat through the Corporate
Communication Department will continue facilitating you
with information and knowledge on regional integration whenever you are
writing a story on it.
As
you are aware, I took over EAC Leadership from my predecessor Amb. Dr.
Richard Sezibera in April this year. I will steer EAC for the next five
years. During
my tenure I commit to engage with you frequently pertinent issues about
the Community. I firmly believe that the media has a big role to play
in this integration journey. As the media, you have a mammoth task of
educating the East Africans the benefits of
integrating and also updating and sensitizing them on the achievements
made so far.
A) KEY ACHIEVEMENTS
Members of the Media
Ladies and Gentlemen
In
April this year EAC attained international recognition as the fastest
growing Regional Economic Bloc in Africa as was reported by the Guardian
Newspaper.
This acclaim is as a result of the major accomplishment EAC has
attained in the recent past. EAC also emerged as the most integrating
Regional Economic Community (REC) in
the Continent according to the
recent Africa Regional Integration Index Report 2016, jointly carried
out by African Union Commission (AUC), African Development Bank (AfDB)
and the United Nations Commission for Africa (UNECA).
According
to the study, which covered eight recognized Regional Economic
Communities (RECs) in Africa, EAC emerged the overall top performing REC
on Regional
Integration.
EAC has registered great strides in the key pillars of integration and let me just highlight a few achievements
- As a result of lot of work done by colleagues in the customs directorate, EAC is now implementing a single customs territory, which means goods are cleared only once at the entry point. This has resulted in the drastic reduction of the period taken to clear and transport goods. It used to take 20 days to clear and transport goods from Mombasa to Kampala, it now takes four days to transport goods to Kampala and about six days from Mombasa to Kigali. This has greatly reduced the cost of doing business by bringing down the transport costs.
Am
happy to inform you also that out of the out of the 15 borders
earmarked to operate as One Stop Border Posts, 11 have now been
completed and 10 of these are
already operational. One stop border posts will reduce the amount of
time spent at the boarder points.
3. In
terms of free movement of labour, some EAC Countries are now issuing
work permits free of charge and also some professionals can practice in
the region without
requirement of further accreditation because their qualifications are
mutually recognized, this include
Engineers; Architects; Accountants; and Veterinary Officers. Process is underway for Lawyers.
4.Ladies
and Gentlemen, you all know that EAC has been working on a process of
laying the foundation for establishment of a monetary union. The dream
is to have
East Africans trade easily using any of their currencies and eventually
have an East African common currency. Towards this we have started the
process of starting four key institutions
to support the monetary union as provided for in the Protocol, namely;
EAC
Monetary Institute; EAC Statistics Bureau; EAC Financial Services
Commission; and EAC Surveillance, Compliance and Enforcement Commission;
is underway.This
is because establishment of a strong Monetary Union will require
a robust institutional framework to ensure compliance and safeguard the
convergence process.
5.I
wish to remind you that EAC is the only block in the continent that has
a dream of walking the whole journey of integration. Our ultimate dream
is to be in
a political federation which is the most unique feature of our
integration process. To prepare ground for this EAC continues to promote
good governance across the region. This is evidenced by the successful
Election Observer Missions in the Republic of Burundi; the United Republic of Tanzania; and the Republic of Uganda. We have also established an
EAC Panel of Eminent Persons to support internal capacity for
preventive diplomacy to support internal capacity for preventive
diplomacy, with the intention of promoting local solutions to local
problems.
a)
The completion of the construction of the
Arusha-Namanga- Athi River Road linking Kenya and Tanzania.
e)
In addition to this, EAC now boasts of a
liberalized air transport services. Each major city pairs in the region is serviced by more than 4 flights every day.
Key Achievements under the Energy Sector in EAC:
Under the Energy Sector, a lot of achievements have been registered and the main one being development of the
Power Master Plan which will be a Blue print for generation and
transmission expansion in the region for the next 25 years. As a result
installed capacity increase from 2691 MW (2008) to 4125 MW (current) and
interconnectivity of power network has been
increased.
Secondly,
there are cross border electricity connections that have already been
realized in the borders of Namanga, LungaLunga and Kikagati-Murongo is
under
implementation.
A number of projects have been planned and feasibility studies already launched for:
a.
Natural Gas Pipeline from Dar es Salaam to Tanga and Mombasa – completed 2011
b.
Scoping for Renewable Energy Resources in the EAC Region – completed 2013
c.
Technical Capacity for Small Hydropower Development – completed 2013
d.
Five Year Implementation Action Plan for the EAC Strategy on Scaling Up – completed 2014
e.
Oil Products Pipeline from Kigali to Bujumbura – under procurement
f.
Oil Products Pipeline from Mbarara-Mwanza-Isaka-Dar es Salaam – under procurement
I
also wish to inform you that in June this year, we launched the East
Africa Centre for Renewable Energy and Energy Efficiency which is
domiciled in Uganda.
I
could go on and on listing the achievements. This serves to demonstrate
to you that the notion that there is nothing that happens in Arusha is
wrong, there
is also an impression that EAC is about travelling and earning
allowances, again this is far from the truth. Alot is happening, of
course there is travelling but for work which is very regulated and
monitored now. I also need to say that our court is now
very busy with most East Africans seeking justice from this court on
various matters while our Assembly has been very active playing an
oversight role for the East Africans.
B. PRIORITY AREAS FOR THE NEXT 5 YEARS
Members of the Media,
Ladies and Gentlemen
As
the new Secretary General, I would like to take this opportunity to
share with you my Vision and priorities for the Community in the next 5
years. For my
tenure in office I will focus on fewer priorities that will deliver
quick results. I want to focus on areas that will touch on the lives of
East Africans and address the basic needs such as food, health,
education and improved incomes. I will therefore ensure
that a big percentage of the EAC resources are directed to sectors such
as Agriculture, Health, Education, and Employment creation. To achieve
this I will strive to establish strategic partnerships with the
development partners, the private sector and also
the civil society organisations and of course the members of the fourth
Estate. In line with this we have listed a few priorities as follows:-
i)
Consolidation
of the Single Customs Territory (SCT) to cover all imports and
intra-EAC traded goods including agricultural and other widely consumed
products
ii)
Further liberalization of free movement of skilled labour across the Partner States
iii)
Enhancement
of regional industrial development through investment in key priority
sectors, skills development, technological advancement and innovation to
stimulate
economic development
iv)
Improvement
of agricultural productivity, value addition and facilitation of
movement of agricultural goods to enhance food security in the region;
and
v) Promotion of regional peace, security and good governance.
Under the above priorities, activities would be identified annually that will have very clear targets and results.
C. PROGRESS MADE SINCE ASSUMING THE OFFICE OF THE SECRETARY GENERAL
Members of the Media,
Ladies and Gentlemen
a) Instituting Cost Reduction Reforms in the EAC Organs and Institutions
Since
taking over the office in May this year, I instituted several reforms
in the EAC Organs and Institutions aimed at cost reduction in the EAC
projects and
programmes. The reforms target savings to the tune of US$ 6 million in the Financial Year 2016/2017 alone.
The
implementation of these reforms are going on very well and already some
positive results are being received, for example, for the first three
months of implementation
(May to August 2016), the first estimates point to savings of US $588,768
in travel expenditures alone. We shall calculate again for the months
September to October. The reforms focus on cutting any wastage,
containing and reducing travel where all
EAC Staff must spend 50 percent of their time in Arusha and also hold
25% of the meetings via video conference facility. We have also reduced
the number of days for our meetings to a maximum of four. Dear friends
it is no longer business as usual.
b)
EAC passed the rigorous EU Fiduciary Risk Assessment
The
European Union, through a consultancy firm, Moore Stephens LLP based in
London, undertook a Fiduciary Risk Assessment (FRA) on the EAC
Secretariat’s operations
in 5 Pillars, namely, Internal
Control System; Accounting Systems; Independent External Audit;
Procurement; and Sub-Delegation. The firm checked on our procedures and
processes
on the mentioned pillars.
According
to the findings, the EAC Secretariat has met the internationally
acceptable standards and successfully undergone the assessment as
required by the
European Union. The conclusion was that EAC applies appropriate rules
and procedures in all material aspects for providing financing from
European Union funds through procurement and in accordance with the
criteria set by the European Commission. This milestone
shall now enable the EAC Secretariat to directly access funding from
the European Union through contribution agreement i.e. EAC will be
allowed to use its own procedures during implementation. It is important
to note that EAC has gone through the same assessment
twice in the past without success in 2006, and also in 2008. Passing of
the assessment in 2016 June is a great testimony that our procedures
and systems have greatly improved and now development partners have
confidence in our systems and processes. A similar
assessment was conducted by USAID with similar results.
c) Project Coordination Mechanism Launched
EAC
has more than 45 different projects and sub sectors that we are
involved in (from road construction, energy, culture, citizen
sensitization, immigration
etc.)
To
eliminate duplication, poor reporting and enhance coordination with
development partners who contribute more than 50% of the EAC budget we
established the
Project coordination unit to enhance how funds are managed and other
funding from Development Partners.
A
multi – disciplinary team has been appointed initially to serve on an
interim basis as the EAC Projects Coordination Unit. This Unit is now
functional and
monitoring all EAC donor funded projects and has already created a
database for all these projects and can produce a single report for all
projects.
The
Unit serves as a one-stop desk for information on EAC projects both
internally and externally and we are working on full time staffing
modalities to be considered
in the near future.
d) Strengthening Relations with Bilateral and Development Partners
In
order to unlock the potential bilateral partner resources that can be
availed to the EAC, the SG has held high level diplomatic missions in
East Africa and
Abroad.
One
of these high level missions include negotiation with the EU in
Brussels and where the future cooperation between EAC and EU was
discussed and a grant totaling
Euro 85 Million was committed to our work.
These
funds will support the following key priorities i.e. Peace and
Security, Regional Integration, Natural Resources, Institutional
Strengthening and Partner
States will access Euro 40 Million for Trade facilitation.
The
EAC SG has also held strategic discussions with all Development
Partners contributing to the EAC Partnership Fund, USAID, Trade Mark
East Africa (TMEA),
KfW, Aga Khan Foundation and United Nations, with the aim of cementing
the relationship between EAC and the Development/bilateral Partners.
Further bilateral discussions have been held with Ambassadors from Germany, USA, Belgium, France, Brazil and Ireland.
During
all these high level discussions, the Development Partners reaffirmed
their strong commitment to supporting EAC, financial and technically to
achieve
its overarching mandate and ambition.
e)
Implementation of Quality Management System
The
Secretariat has continued to rollout Quality Management System based on
ISO 9001:2008 . I am happy to report now that EAC is ISO certified..
this is also
confirmation that our processes meet the international recognised
standards.
f) Joining of the Republic of South Sudan
In
terms of geographical growth, EAC has now reached a mark of serving a
population of over 160 million people with the joining of South Sudan
who is now a full
member of East African Community having deposited the instruments for
ratification with the Secretary General in September this year. This
means that South Sudan will now be integrated into the activities,
programmes and projects of EAC and will commence contributing
to the EAC budget.
D. FACTS ABOUT EAC
COMMUNITY FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2014/2015
Members of the Media,
Ladies and Gentlemen
I would like to take this opportunity to inform you that the
East African
Community Financial Statements for the Financial Year 2014/2015 were
audited by the EAC Audit Commission made up of the Auditors General of
the EAC Partner States. An unqualified (clean) audit opinion was issued,
meaning that the Financial Statements presented
fairly, in all material respects, the financial position, performance
and cash flows in accordance with the accounting reporting framework
used (International Public Sector Accounting Standards) and comply with
the provisions of the Treaty for Establishment
of the East African Community. The report was tabled to the East
African Legislative Assembly for debate at the First Meeting of the Fifth Session of the Third Assembly that
was held from Monday, August 22nd 2016 to Friday, September 2nd 2016, in Arusha, Tanzania.
As
is the practice in the audit processes, the Audit Commission issued to
the EAC Secretary General a Management Letter highlighting areas that
require improvement,
without alluding to fraud. The management of the Community appreciated
the recommendations of the Audit Commission and the East African
Legislative Assembly on the Accounts and is implementing them.
While
the EAC appreciates the role of the Media and welcomes interaction with
many journalists, the Management was taken aback by some of the
commentaries and
headlines that seemed to sensationalize clearly out of context certain
aspects of the Accounts.
The Citizen newspaper, dated 4th September, 2016, led with a top headline
("Revealed: Billions swindled at EAC”). The Management of
the Community wishes to clarify that the thrust of the Article gave the
wrong impression to the readers of a clandestine and wilful pilferage of
the Community finances. Clearly, the main
issues even reading from the Article were of an administrative nature,
and their cost implications unavoidable as matters of overtime payment
for eligible categories of staff, compensation for untaken leave at
separation with the employer are employees' non-negotiable
legal entitlements. The payment for goods and services
delivered/provided to the Community again are liabilities that must be
settled.
I
wish to reiterate that a number of issues were raised which have to be
addressed by the management, some of the issues concern procurement and
travel where
reforms have already been instituted to address them. I wish to state
categorically that there were no billions lost, actually there is no
evidence of any money lost. We are committed to improve our practices to
ensure that we are within the rules and ensure
efficiency and cutting costs. Already we have changed a lot on the way
we are doing our business now.
One
of the areas where we are committed to ensure 100% compliance is in the
procurement of goods and services. I know you are aware of some issues
in the procurement
of EAC insurances and others. I wish to clarify that the process was
stopped to ensure compliance in our internal processes. There are many
procurements that were put on hold to ensure that all provisions of the
procurement manual are complied to. I can confirm
that now this is going on very well and I want to assure you that the
audits of especially 16/17 will be very impressive. Some of the issues
that were raised by the audit of 14/15 had been raised in the previous
years and a time had to come to put a stop on
some things.
Implementation
of reforms is not smooth, its painful, not always acceptable to
everyone but its time to face reality or perish, act or be acted on.
E. CONCLUSION
In
conclusion, I want to exude the confidence that I have and assure you
that EAC will achieve its mandate as per the treaty, there is strong
resolve and willingness
to improve in the way we do business, once again I pledge to work with
you, the Media, in order to intensify our reach out to the people of
East Africa and to deepen our relations and also to practice the Open
Door Policy with you.
I
thank you for your kind attention. I have another commitment shortly
after this Press Conference, and therefore, I invite a few questions, in
case you have
any.
Thank you and GOD bless you all, God bless EAC!
EAC Secretariat,
Arusha, Tanzania.
10th October 2016
Hakuna maoni :
Chapisha Maoni