Professional Documents
Culture Documents
28 MEETING OF THE
COUNCIL OF MINISTERS
th
Kampala, Uganda
22nd 29th November, 2013
EAC SECRETARIAT
ARUSHA, TANZANIA
TABLE OF CONTENTS
PREAMBLE 4
2.1
2.2
2.3
2.4
2.5
2.6
2.7
PART III
3.1
3.2
PART IV
4.1
PART V
5.1
5.2
PART VI
6.1
PART VII
7.0
7.1
PART VIII
PART IX
9.1
9.2
PART X
10.1
10.2
10.3
10.4
10.5
PART XI
11.1
12.1
12.2
12.3
LIST OF TABLES
Table I:
Table II:
Table III:
Table IV:
Table V(a):
Page 2
Table V(b):
Table VI:
Page 3
PREAMBLE
The 28th Meeting of the Council of Ministers (the Council) was held in Kampala,
Uganda from 22nd 28th November, 2013.
Pursuant to Article 12(2) and 12(5) of the Treaty for the Establishment of the East
African Community (the Treaty), and the Rules of Procedure for the Council of
Ministers the Bureau for the meetings changes annually by consensus and taking
into account the principle of rotation. According to the criteria on rotation, the
Republic of Rwanda and The United Republic of Tanzania should have been coming
into the bureau. However, the Republic of Rwanda declined the Chairmanship. Upon
consultation the Republic of Kenya took over from the Republic of Uganda as
Chairperson and The United Republic of Tanzania took over from the Republic of
Burundi as Rapporteur. The Meeting was chaired by Mrs. Phyllis Jepkosgei
Kipkingor-Kandie, Cabinet Secretary, Ministry of East African Affairs, Commerce and
Tourism, Republic of Kenya. The Rapporteur was Mr. Mugisha Kyamani, Principal
Legal Officer, Ministry of East African Cooperation, The United Republic of Tanzania.
The outgoing Chairperson, Hon. Shem Bageine, MP, Minister of State, Ministry of
East African Community Affairs, on behalf of the Republic of Uganda, extended a
warm welcome to all delegates attending the Meeting. He also thanked the Partner
States and EAC Organs and Institutions for their support during Ugandas
Chairmanship. He requested the same support to be accorded to the incoming Chair
and assured the Meeting that Uganda will continue to provide the necessary support
to the Chair and the Community in general. He pointed out that Uganda is happy to
have this opportunity to host the 28th Meeting of the Council. The speech of the
outgoing Chairperson is attached hereto as Appendix I.
In her opening remarks, the incoming Chairperson, Mrs. Kandie thanked the
Republic of Uganda for having steered the Community Affairs ably during her term
as Chair of the Council. In this regard she noted significant milestones achieved
during the period and thanked the outgoing Chairperson for a job well done. She
further noted that the Meeting is going to consider a number of important issues to
the Community as set out in the Agenda. She requested the delegates to be timeconscious when conducting the meeting and wished the Meeting fruitful
deliberations. The speech of the incoming Chairperson is attached hereto as
Appendix II.
In his remarks, Amb. Dr. Richard Sezibera, the Secretary General of the East African
Community, warmly welcomed delegates to the Meeting. He regretted the recent
demise of the Late Dr. Flora Mndeme Musonda, Director for Trade, East African
Community Secretariat whom she lauded for her able contribution to the East African
Community. He thanked the Republic of Uganda for the hospitality extended to the
delegates and for ably chairing EAC meetings during her term. He informed the
Meeting that many EAC Meetings are being hosted by the Republic of Uganda
including, and the 15th Summit of the EAC Heads of State where the Heads of State
are expected to sign the Protocol on the Establishment of the EAC Monetary Union.
He thereafter, wished the Meeting fruitful deliberations.
Page 4
The Meeting adopted the Agenda and the Programme and deliberated on the
following matters (a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Page 5
PART I
Page 6
(e) EAC/CM 27/Directive 19: The Council directed the Partner States to expedite
the ratification of the EAC SPS Protocol and deposit the instruments of
ratification with the Secretary General by June 2014;
(f) EAC/CM 27/Directive 23: The Council adopted the decisions of the
5th Meeting of the Sectoral Council on Tourism and Wildlife Management
(EAC/CM 27/Decision 29) and directed the Secretariat to convene a Joint
Meeting of the Sectors at Ministerial level to consider the report of the Task
Force and provide guidance on the introduction of an EAC Tourist Visa;
(g) EAC/CM 27/Directive 24: The Council directed Partner States to adequately
plan and allocate resources to train more hotel assessors;
(h) EAC/CM 27/Decision 45: The Council referred the proposed draft
amendments of the EAC Customs Management Act, 2004 and EAC Customs
Management Regulations, 2010 to the Sectoral Council on Legal and Judicial
Affairs for legal input (i) EAC/CM 27/Directive 28: The Council took note of the progress on the
development of the IUCEA Headquarters (EAC/CM 27/Decision 51)and
directed the Republic of Uganda and the Republic of Burundi to remit
their contributions towards the construction of the IUCEA headquarters
building in order to allow smooth implementation of the construction
works by 31st December 2013;
(ii) EAC/CM 27/Directive 33: The Council directed Partner States to
consider the increment of US$776,050 in their supplementary budgets
where possible;
(iii) EAC/CM 27/Directive 34: The Council directed the Partner States to
consult further on the proposal that the budget of the East African
Community be financed from 1% of the value of imports from outside
the East African Community;
(iv) EAC/CM 27/Directive 66: The Council directed the United Republic of
Tanzania and the Republic of Rwanda to urgently meet to resolve the
issues of mass expulsion of Rwandans by the United Republic of
Tanzania;
Outstanding Decisions/Directives of the 26th Meeting of Council
(a) EAC/CM 26/Directive 10: "The Council directed the United Republic of
Tanzania to ratify and deposit instruments of ratification with the Secretary
General) on Protocols on; Environment and Natural Resources;
Establishment of the East African Kiswahili Commission; and Establishment of
the East African Health Research Commission by 15th December 2012";
(b) Out of the three Protocols, the United Republic of Tanzania has ratified the
Protocol on the Establishment of the East African Kiswahili Commission and
process of ratifying the Protocol on Environment and Natural Resources is
ongoing;
(c) EAC/CM 26/Directive 35: The Council took note of the status of the
investment in fixed deposit of the IUCEA Headquarters construction fund as at
12th October 2012 (EAC/CM 26/Decision 68); and directed IUCEA to adopt
and customize its investment policy to conform to the Community investment
policy;
Page 7
Page 8
with financial implications that are given in the middle of the financial
year; (EAC/CM 28/Directive 02);
(e) reiterated its previous decision directing The United Republic of
Tanzania and the Republic of Rwanda to urgently meet to resolve the
issues regarding the Republic of Rwandas concerns on the Kagera
Region
expulsion
of
Rwandans
by
30th January,
2014
(EAC/CM 28/Decision 04); and
(f) reiterated its previous decision directing the Secretariat to constitute a
Team of Management and Audit Experts to undertake the verification of
Lake Victoria Basin Commission Management systems and operations
and submit report to the Sectoral Council of Ministers Responsible for
Lake
Victoria
Basin
Commission
at
its
next
meeting
(EAC/CM 28/Decision 05).
PART II
2.1
The Council was informed that the 19th Meeting of the Sectoral Council of Ministers
responsible for EAC Affairs and Planning the Sectoral Council was held in
Bujumbura, Burundi from 28th October 1st November 2013. The Sectoral Council
deliberated on the following agenda items (i) Report on the Implementation of Previous Decisions of the Sectoral Council;
(ii) Cumulative Activity Implementation Report for the Period July 2012 June
2013;
(iii) Progress Report on the Status of Implementation of the EAC Common
Market;
(iv) Progress Report on the Internationalisation of the East African Community
(EAC) Passport;
(v) Report of the 2nd EAC Secretary Generals Forum;
(vi) Political Affairs Matters;
(vii) Progress Report on the Elimination of Non-Tariff Barriers; and
(viii) Progress Report on COMESA-EAC-SADC Tripartite Arrangement.
The full Report of the 19th Meeting of the Sectoral Council is part of the Compendium
for this Meeting.
With regard to the status of implementation of the EAC Common Market Protocol,
the Sectoral Council noted that Partner States implementation of the Common
Market Protocol is generally lagging far behind, save for the Free Movement of
Goods. In this regard, Partner States need to expeditiously implement the
commitments and amend their national laws to conform to the Protocol as well as
allocate more resources to the Ministry Department Agencies charged with
implementing the Protocol.
Page 9
With regard to the EAC Election Observation Mission (EAC-EOM) to the 16th 18th September, 2013 Rwanda Parliamentary Elections, the Sectoral Council was
informed that a meeting of the EAC Election observer Team to finalize and adopt the
report took place on 17th October 2013. The Team finalized their report and officially
handed over the Report to the Secretary General. The Report details the process
and the outcome of the Parliamentary Elections with recommendations to the
Electoral Management Body in Rwanda. The overall finding was that the elections
were conducted in accordance with the Rwanda legal framework and the outcome
expressed the will of the people of Rwanda. The Report is hereto attached as
Annex III.
On the EAC Nyerere Centre for Peace Research Draft Strategic Plan and Concept
Paper, the Sectoral Council agreed to revise the documents to remove any reference
to NCPR a centre of excellence or an institution of the Community and instead refer
to it as a functional unit under the department of Political Affairs. The Council further
noted the need to speedily conclude this matter to pave way for resource
mobilisation, especially under the forthcoming EDF11. The Revised Strategic Plan
and the Concept Note for NCPR are attached hereto as Annex IV and V
respectively.
The Council
(a) adopted the decisions of the 19th Meeting of the Sectoral Council of
Ministers
Responsible
for
EAC
Affairs
and
Planning
(EAC/CM 28/Decision 05);
(b) reiterated its earlier directive to the Partner States to expedite the
implementation of the Council directives on the harmonization /
approximation of national laws into EAC context by 31st December
2013 (EAC/CM 28/Decision 06);
(c) took note of the Report of the EAC Election Observation Mission to
Rwanda Parliamentary Elections (EAC/CM 28/Decision 07).
2.1.1 Progress Report on the Internationalization of the EAC Passport
The Council was informed that at its 19th Meeting, while considering the agenda on
the progress report on the Internationalisation of the EAC Passport, the Sectoral
Council noted that the Meeting of the Chiefs of Immigration held on 24 th 25th October 2013 had proceeded as consultative meeting due to the fact that the
Republic of Rwanda was not represented. The Sectoral Council further noted that
the Secretariat had formally submitted the report to the Republic of Rwanda for
consideration and therefore directed the Secretariat to table the progress on the
Internationalisation of the EAC Passport to the 28th Meeting of the Council
(EAC/SCMEACP19/Directive 08).
The Council was informed that the Secretariat has since received comments from
the Republic of Rwanda on the report of Chiefs of Immigration. The Council noted
the need for the Secretariat to circulate the said comments to Partner States for
consideration and comments. Furthermore, the Secretariat should convene a
Meeting of Chiefs of Immigration to consider comments from the Republic of
Rwanda and thereafter submit the Report of the Meeting of Chiefs of Immigration to
Page 10
the 20th Meeting of the Sectoral Council of Ministers Responsible for EAC Affairs and
Planning for consideration.
The Council was informed that the Partner States are at different stages of procuring
the necessary infrastructure for the e-passport. This therefore raises the need to
fast-track the implementation of the new generation East African e-passport in terms
of agreement on timeframes to launch and commence the internationalization of the
same. The Council observed that the internationalization of the new generation East
African e-passport should commence by November 2015 and noted the need for the
Partner States to integrate the budget estimates for the process in their budget
cycles for FY 2014/2015 and 2015/2016.
The Council
(a) decided that the internationalisation of the new-generation EAC epassport shall take effect by November 2015 (EAC/CM 28/Decision 08);
(b) directed the Secretariat to circulate the comments from the Republic of
Rwanda to Partner States for consideration by 15th December 2013
(EAC/CM 28/Decision 10);
(c) directed the Secretariat to convene a meeting of the Chiefs of
Immigration to consider comments from the Republic of Rwanda by
31st January 2014 (EAC/CM 28/Decision 11); and
(d) submitted the Report of the Meeting of Chiefs of Immigration to the
20th Meeting of the Sectoral Council of Ministers Responsible for EAC
Affairs and Planning for consideration (EAC/CM 28/Decision 12).
2.2
The Council was informed that at its 15th Meeting held on 15th November, 2013, the
Sectoral Council on Legal and Judicial Affairs (the Sectoral Council) deliberated on
a Proposal to Repeal the East African Community Trade Negotiations Act, 2007; the
Revised Inter-University Council for East Africa Bill, 2013, repealing The IUCEA Act
2009; the draft Protocol on East African Community Regional Cooperation on Health;
the East African Community Science and Technology Commission Bill, 2013; the
draft East African Community Protocol on Preventing and Combating Corruption; the
draft Protocol on Immunities and Privileges of the East African Community, Its
Organs and Institutions for Legal input on Articles 2, 3 And 11; the draft East African
Community Protocol on Good Governance; the draft Protocol on the Establishment
of the East African Monetary Union; the Revised Comprehensive Technical Paper
Extending Jurisdiction of the East African Court of Justice to include among others,
Crimes Against Humanity; the Report of the East African Judicial Education
Committee; the Report of the Sub Committee on Approximation of National Laws in
the EAC Context; Outstanding dues from the Republic of Rwanda; and the draft
Protocol on the Establishment of the East African Monetary Union (the EAMU
Protocol). The Report of the 15th Meeting of the Sectoral Council is attached hereto
as Annex VI.
Page 11
(b)
(c)
Page 12
(d)
(e)
The Council recalled that the Heads of State at their 14th Summit directed that the
Council to consider extension of the jurisdiction of the East African Court of Justice
to cover crimes against humanity among others. The Council was informed that at its
15th Meeting, the Sectoral Council on Legal and Judicial Affairs, which had caused
the Secretariat to develop a comprehensive technical paper on the matter, noted
reports by
(a) the Republic of Rwanda and the Republic of Burundi that jurisdiction of the East
African Court of Justice can be extended to cover crimes against humanity and
human rights abuses;
(b) the United Republic of Tanzania and the Republic of Kenya that given the fact
that the Partner States subscribe to the African Court on Human and Peoples
Rights, the International Criminal Court and relevant international conventions
and taking into account the capacity of the East African Court of Justice, it was
not appropriate to extend jurisdiction to cover crimes against humanity and
human rights abuses; and
(c) the Republic of Uganda has not submitted comments on the matter and has
been directed to do so by 30th November, 2013.
The Council noted that Partner States were yet to consult on the Report of the
15th Meeting of the Sectoral Council on the legal and Judicial Affairs due to the fact
that its meeting concluded shortly before the 28th Meeting of the Council. The
Council therefore decided to consider only the items on the Agenda of the
15th Summit. The Council was informed that the matter on the extension of the
Page 13
jurisdiction of the EACJ is still under consideration by the Sectoral Council on Legal
and Judicial Affairs.
The Council
(a) adopted the decisions of the 15th Meeting of the Sectoral Council on
Legal and Judicial Affairs pertaining to the Protocol on the
Establishment
of
the
East
African
Monetary
Union
(EAC/CM 28/Decision 11);
(b) adopted the draft Protocol on the Establishment of the East African
Monetary Union (EAC/CM 28/Decision 12);
(c) recommended to the Summit to approve and sign the EAMU Protocol
(EAC/CM 28/Decision 12);
(d) directed the Secretariat to make a compilation of all documentation used
in the negotiations of the draft Protocol to be used as working
documents in drafting the legal instrument establishing the institutions
to support the Monetary Union (EAC/CM 28/Directive 03);
(e) directed the Secretariat to expedite the preparation of the draft Protocol
to Operationalize Extended Jurisdiction of the East African Court of
Justice to cover trade and investment and matters associated with the
Monetary Union (EAC/CM 28/Directive 04);
(f) directed the Sectoral Council on Legal and Judicial Affairs to expedite
deliberations on the feasibility of extending the Jurisdiction of the Court
to cover crimes against humanity taking into account comments from
Partner States (EAC/CM 28/Directive 05); and
(g)
deferred consideration of other decisions of the 15th Meeting of the
Sectoral Council on Legal and Judicial to the next meeting of the
Council, save those that are on the agenda of the 15 th Summit
(EAC/CM 28/Decision 13).
2.3
Page 14
Page 15
Page 16
Section 10
Section 1
3
Section 1
2
Page 17
The Council
(a) stayed consideration of The East African Legislative Assembly Elections
Act, 2011 pending finalization of the consultations by the Partner States
(EAC/CM 28/Decision 16); and
(b) deferred setting a date for operationalization of The East African
Parliamentary Institute Act, 2011 till the Secretariat tables a report on the
financial implications on its implementation and report to the 29th Meeting
of the Council (EAC/CM 28/Decision 17).
2.4
APPLICATION
BY
THE
EAST
AFRICAN
ORGANIZATION FOR OBSERVER STATUS
COMMUNICATIONS
(b)
Article 7(1) (d) of the Treaty for the Establishment of the East African Community
Article 5 (3) (g)
6
Article 3 (5)
5
Page 18
2.4.2 Application
By its letter Ref 358/EACO/ES/013 dated 9th April 2013, the East African
Communications Organization, a regional public private partnership organization that
brings together national regulators in the communications sectors; operators and
service providers in the telecommunications, broadcasting and postal sectors; and
ICT training institutions in the five EAC Partner States, applied for Observer Status in
the Community. The mission of the East African Communications Organization,
which was established in 2000 and is based in Kigali, Rwanda, is to strengthen and
promote cooperation in the development and provision of postal telecommunications
and broadcasting services in the Community. Its specific objectives7 are to (a) harmonize policy and regulatory frameworks in the region;
(b) promote the development of broadcasting, postal and telecommunication/ICT
service and regulatory matters; and
(c) devise ways and means to achieve fast, reliable, secure, affordable and
efficient communication services within the East African Community. The
focus areas are highlighted in Article 3 of its Constitution8.
A copy of the Application is attached hereto as Annex XIV.
By his letter Ref SGN/5/7 dated 2nd May 2013, the Secretary General circulated this
application to the Partner States for consideration. By her letter Ref PP 299/232/01
dated 15th August 2013 the Republic of Uganda expressed support for this
application.
2.4.3 Proposed Way Forward
The Council was informed that in considering this application, the Council will take
into account (a) the Partner States comments;
(b) both the broad criteria and specific criteria applicable;
(c) compatibility and complementarity of the objectives and activities of the East
African Communications Organization with those of the East Africa
Community taking into account the provisions of Article 99 of the Treaty; and
(d) the East African Communications Organizations willingness to co-operate
with the Community for mutual benefit.
The Council was informed that the application was considered by the Sectoral
Council on TCM at its 10th Meeting held in Kigali on 19th - 23rd August, 2013 and took
note of the application as it was being processed. The Council further noted that the
participation of EACO in EAC communications related activities would add value as
its membership comprises relevant sectors involved in regulatory operational and
technical matters in communications and ICT. The Council therefore supported the
application of EACO as an observer to the EAC working closely with the Sectoral
Council on TCM.
7
8
Page 19
The Council was informed that at its 24th Meeting held on 26th November 2011, the
Council directed the Secretariat to engage a Consultant to undertake a detailed
review of the Institutional Review in the next Financial year 2012/2013 (EAC/CM
24/Directive 38). Accordingly, at its 26th Meeting held on 19th - 26th November, 2012,
the Council, took note of the progress made on the Institutional Review and
approved the Terms of Reference for engagement of the consultant to carry out the
exercise.
2.5.1 Subsequent Developments
The Secretariat engaged the consultants on 21 st January 2013 who submitted the
1st Draft Report to the Secretary General. The Draft Report, presented an analysis
and recommendations based on a functional analysis of the EACs Institutional
framework, covering structures, policy-making, work processes, decision-making,
and institutional inter-actions. It indicates how workloads, job analysis, job
description, staffing, grading, and costs assessment would need to be approached to
finalise the institutional assessment. It does not cover those elements in detail,
however, because they are conditioned by the decisions Partner States need to
make on key strategic options related to structures and functions. The Report was
considered by the Hon. Ministers/Cabinet Secretary and Permanent Secretaries
responsible for East African Community Affairs during the Retreat held on 8th19th
June, 2013.
The Retreat (a) appreciated that the consultancy was still work in progress and noted the
need for the Council to take decisions on key strategic issues raised in the
interim report and recommend that these decisions be taken by Council at its
27th Meeting; and
(b) advised the Council to consider extension of time for the Consultants to
finalize the outstanding work.
The validation workshop on the Institutional Review Report was held on 12th 13th August 2013. The Workshop was attended by representatives from all Partner
States as well as EAC Organs and Institutions. At its 27th Meeting held on
31st August 2013, the Council received the Institutional Review Report and deferred
its consideration, pending consultations by Partner States on the final Report,
(EAC/CM 27/Decision62).
The Council was informed that the Consultant had been requested to develop
another draft Report for consideration by Partner States following a workshop on the
initial draft. The Council further noted that some Partner States are yet to submit
their comments on the draft Report.
Page 20
The Council was informed that in EACJ Ref No. 1 of 2010, Hon. Sitenda Sebalu vs
Secretary General of the East African Community and the Attorney General of
Uganda, the Applicant, among other prayers sought declarations to the effect that
(a) the Secretary General delayed to convene a Meeting of the Council of
Ministers to create the East African Court of Justice as an appellate court;
(b) the Secretary Generals inaction in convening a Meeting of the Council was
an infringement of the fundamental principles of Good Governance as
enshrined in the Treaty for the Establishment of the East African Community;
(c) the Republic of Uganda delayed submission of comments on the draft
Protocol to Operationalize Extended Jurisdiction of the East African Court of
Justice;
(d) inactions of the Secretary General and the Attorney General of Uganda were
an infringement of the Treaty; and that
(e) urgent action should be taken by the East African Community to conclude a
Protocol to operationalize extended jurisdiction of the East African Court of
Justice under Article 27 of the Treaty.
In the Secretary Generals defence, evidence was adduced to show what the
Secretary General, the Council of Ministers and the Partner States had since 2005
been doing regarding the development and conclusion of the draft Protocol. The
Court ruled that (a) the Attorney General of Uganda (Uganda) was guilty of delayed action in
submitting comments on the draft Protocol to Operationalise Extended
Jurisdiction of East African Court of Justice and was therefore in breach of the
Treaty; and that
(b) the Secretary General ought to have done more than preparing the zero
protocol and organizing meetings and consultations; that he ought to have
resorted to Article 29 of the Treaty to bring the Partner States that delayed
submission of comments to the East African Court of Justice.
At its 24th Extraordinary Meeting held on 26th April 2012, the Council was informed
that as the successful party in the case, the Applicant was awarded costs of the suit
to be borne equally by the Respondents. He claimed US$ 14,357,669.00 as costs.
Following arguments made for the Secretary General in Court this exorbitant figure
was rejected and, upon taxation by the Taxing Officer of the Court, the Applicant was
awarded the sum of US$ 105,068.20 whereby the Secretary General was expected
Page 21
to pay US$ 52,534.10 and the Attorney General of Uganda, the other
US$ 52,534.10.
The Council considered a request by the Secretariat to reallocate US$ 52,534.10
unutilized funds under personnel emoluments due to the delays in the recruitment
process to meet the costs which request had been recommended by the Finance
and Administration Committee. The Council however observed that (a)
(b)
(c)
(d)
The Council noted the need for Partner States to discourage this kind of litigation
and therefore (a) deferred the approval of re-allocation of US$ 52,534.10 to settle the costs
related to EACJ Reference No. 1 of 2010 (EAC/EX/CM 24/Decision 20);
(b) directed the Secretariat to explore all the possibilities of an appeal or any
other legal remedies available against the impugned decision of the Court
(EAC/EX/CM 24/Directive 15) and
(c) directed the Secretariat to ensure that in future all litigation with policy and
financial Implications are immediately brought to the attention of the Partner
States (EAC/EX/CM 24/Directive 16).
2.6.1 Subsequent Developments
The Council was informed that for purposes of exploring possibilities of appeal on
10th July 2010, the First Instance Division was moved for leave to file an appeal from
the judgment. It was argued, on behalf of the Secretary General, that
(a) the delay in filing the Appeal was occasioned by hardship;
(b) consultations between the Applicant, the Attorney General of the Republic of
Uganda and the Council of Ministers, the Communitys policy organ, took long
and this delayed the filing of the appeal in the time prescribed by the Rules of
Procedure; and
(c) the appeal had chances of success.
The Council was further informed that on 14th February 2013, the Court found the
delay to appeal inordinate and was not convinced of the success of the intended
appeal. The Court therefore dismissed the application for leave to appeal out of time.
By his letter Ref ORG/2/1 dated 3rd April 2013 the Secretary General informed the
Partner States accordingly and informed them of the need to settle the matter before
it grows in magnitude and involves the Secretariat in further loss and inconvenience.
These developments were brought to the attention of the Council of Ministers at its
27th Meeting under the Report on Implementation of Previous Decisions which report
the Council noted. Subsequently the judgment creditor filed EACJ Ref 8 of 2012 in
which he sought orders for enforcement of the orders on payment of costs.
Page 22
Judgment was delivered on 22nd November 2013 whereby the Secretary General
and the Council of Ministers were cited in contempt of Court and the Secretary
General was ordered to pay the costs within 30 days.
2.6.2 Proposed Way Forward
Furthermore, the Council was informed that taking into account the background to
this matter, the litigation so far had and the future outlook it should be noted that (a) any grounds for appealing against the latest ruling of the First Instance
Division are not strong enough; appealing against the latest ruling on affecting
out of time will be tantamount to unnecessarily continuing with litigation at the
risk of the amount in costs further escalating;
(b) the awarded US$ 52,534.10 costs was not on the high side considering the
fact that this was arrived at from an originally claimed US$ 14,357,669.00
costs;
(c) the 2nd Respondent (i.e. the Attorney General of Uganda) did not consider it
worthwhile to appeal against the Judgment and the taxation of costs and is
proceeding to settle his US$ 52,534.00 costs; and
(d) while this matter is proceeding in Court and settlement is delayed, the East
African Community (through the Summit of Heads of State, the Council of
Ministers, the Sectoral Council on Legal and Judicial Affairs and the East
African Legislative Assembly) is proceeding in terms of Article 38 of The
Treaty to accept the judgment in the Reference and expedite the conclusion
of the draft Protocol.
The Council was informed that it is therefore advisable to pay the US$ 52,534.10
costs before the figure rises on account of delays and subsequent litigation. The
Republic of Uganda informed the Council that it was in the process of paying the
costs as awarded by the Court.
The Council noted that the responsibility of concluding Protocols lies to Partner
States as provided for under Article151 of the Treaty. To that end, concluding a
Protocol to operationalize extended jurisdiction of the East African Court of Justice
will be determined by the Council of Ministers as provide under Article 27(2) of the
Treaty, the Council shall have such other original, appellate, human rights and other
jurisdiction as will be determined by the Council at a suitable time. To this end, the
Partner States shall conclude a Protocol to operationalize the extended jurisdiction.
The Council noted that payment may set a bad precedent and open a Pandoras Box
for future cases with the possibility of financially crippling the Community. The
Community assets and resources have to be safeguarded as observed by the
Council. The Council is of the further view that these assets include Partner States
contributions and accounts of the Community. The Council therefore noted the need
for the Office of the Counsel to the Community to consult the Attorneys General of
the Partner States to team up to defend Community interests.
However, to abide by the fundamental principle of good governance including
adhering to the proper administration of law and justice, and to avoid a situation
where continued failure to pay the costs in this case may lead to further escalation of
Page 23
costs and undue embarrassment to the Community. The Council was therefore of
the view that the Secretary General should comply with the Court order in EACJ
Ref.8 of 2012 and pay the costs as awarded.
The Council directed the Secretariat to settle the US$ 52,534.10 costs as
ordered by the East African Court of Justice (EAC/CM 28/Directive 21).
2.7
At its Meeting held on 24th June 2013 and 19th November 2013 in Kampala, the
Sectoral Council on Co-operation in Defense considered the report of the
Consultative Committee on Co-operation in Defense and the report of the
Consultative Committee on Co-operation in Defence on Regional Security and made
the following decisions and directives 2.7.1 Operations and Training
The Sectoral Council considered the progress report on EAC CPX 2013 preparations
held in Bujumbura, Republic of Burundi from 13th-26th October 2013 and (a) approved Muzinda Military Barracks in the Republic of Burundi as exercise
site for EAC CPX 2013 (EAC/SC/20/2013 Decision 1);
(b) approved the name USHIRIKIANO IMARA for the current and future EAC
PSO exercises (EAC/SC/20/2013 Decision 2;
(c) approved the proposed EAC CPX 2013 timelines (EAC/SC/20/2013 Decision
3);
(d) approved the estimated shared cost budget of US$ 92,980.00 and each
Partner State be urged to contribute US$ 18,596.16 by 30th August 2013
(EAC/SC/20/2013 Decision 4); and
(e) directed EAC Secretariat to constitute a DEWG to develop Staff Officers
Hand Book by the end of August 2013 (EAC/SC/20/2013 Directive2).
2.7.2 Report of the Commandants of EAC
Colleges/Higher Military Training Institutions
Command
and
Staff
The Sectoral Council considered the report of the Commandants meeting held in
Arusha, Tanzania held from 3rd - 5th April 2013 and (a) reiterated its earlier decision urging the Republic of Burundi to expedite the
process of revising their Senior College (CEMCI) syllabus to conform to those
of other Partner States, (EAC/SC/20/2013 Decision 5);
(b) reiterated its earlier decision urging the Republic of Burundi to post Directing
Staff to Senior Command and Staff Colleges of EAC Partner States as was
agreed (EAC/SC/20/2013 Decision 6);
(c) reiterated its earlier decision urging the Republic of Burundi of the need to use
English language as a medium of instructions at the CEMCI,
(EAC/SC/20/2013 Decision 7);
(d) formally included the Rwanda Senior Command and Staff College in the EAC
exchange programme for Directing Staff and students, (EAC/SC/20/2013
Decision 8); and
Page 24
(e) established a separate Forum for EAC Officer Cadet Training Schools to meet
once a year (EAC/SC/20/2013 Decision 9).
2.7.3
The Sectoral Council received the developed templates for EAC PSO Campaign
Plan, Operation Plan, Orders and Umpiring Criteria and; adopted the templates for
EAC PSO to be incorporated in the existing EAC PSO SOP (EAC/SC/20/2013
Decision 10).
2.7.4
The Sectoral Council considered the report on EAC Military Games and Cultural
Events 2013 and
(a) commended Republic of Kenya for the progress made in preparations for the
EAC Military Games and Cultural Event 2013 (EAC/SC/20/2013 Decision 12).
(b) That in all future events Hosting Partner State to always compose a Theme
Song for the EAC Military Games and Cultural Events (EAC/SC/20/2013
Decision 13).
2.7.5
The Sectoral Council on Cooperation in Defense considered the report of the Chief
Executive Officers (CEOs) of Defense Technical Facilities offered for Joint Utilization
and made the following decisions and directives
The Sectoral Council
(a) directed the Republic of Rwanda to make a formal offer for joint utilization of
Horizon Group Ltd. and E-ICT (EAC/SC/20/2013 Decision 14);
(b) directed EAC Secretariat to coordinate the evaluation of the additional
facilities offered by Kenya for joint utilization (EAC/SC/20/2013 Directive 5);
(c) encouraged Partner States to utilize the joint offered facilities
(EAC/SC/20/2013 Decision 15); and
(d) directed EAC Secretariat to coordinate dissemination of Information for
offered facilities for joint utilization (EAC/SC/20/2013 Directive 6).
2.7.6
Page 25
(b) directed EAC Secretariat to submit these two positions to the EAC Institution
Review for Consideration (EAC/SC/20/2013 Directive 7);
(c) decided that the designation of the person in charges Secure Communication
System for CDFs be named the Call Manager System Administrator
(EAC/SC/20/2013 Decision 18);
(d) decided that Host nation provides and funds the seconded military officers
(EAC/SC/20/2013 Decision 19);
(e) approved the procurement of two compatible mobile units (EAC/SC/20/2013
Decision20); and
(f) directed EAC Secretariat to come up with a proposal on the use of the Call
Manager System Administrator on ICT related duties in the EAC Secretariat
(EAC/SC/20/2013 Directive 8).
2.7.7 Regional Security
The Sectoral Council on Cooperation in Defence adopted the report of the
Consultative Committee on Cooperation in Defence on Regional Security and made
the following decisions (a) Border control needs to be strengthened to address the threat of transnational
terrorism, criminals and drugs smugglers (EAC/SC/21/2013/Decision 1);
(b) Military Intelligence Chiefs to reassess the national and regional counter
terrorism capacities with the view to strengthen the fight against terrorism at
national and within EAC (EAC/SC/21/2013/Decision 2);
(c) In the spirit of EAC, a mechanism to deal with illegal immigrants be developed
(EAC/SC/21/2013/Decision 3);
(d) Appropriate legal and political measures including sanctions to curtail
activities of politico-military leaders of negative armed groups in the region be
adopted (EAC/SC/21/2013/Decision 4);
(e) The EAC Partner States continue supporting the effort of the ICGLR/SADC
Member States and international community on the on-going peace initiatives
aimed at stabilizing Eastern DRC (EAC/SC/21/2013/Decision 5);
(f) Welcomed the development of MoU between ICGLR and MONUSCO and
urged EAC Partner States to support IB operations tempo in order to
eliminate negative forces operating in Eastern DRC to include FDLR, ADF
and FNL (EAC/SC/21/2013/Decision 6); and
(g) Encouraged EAC Partner States to support the on-going Political Process
(Kampala Dialogue) which should be concluded for long term peace and
stability (EAC/SC/21/2013/Decision 7).
The Council adopted the decisions of the Sectoral Council on Co-operation in
Defence (EAC/CM 28/Decision 22).
Page 26
PLANNING
Page 27
Page 28
MAC had reviewed the Report of the Financial Sector Assessment Program (FSAP)
on the EAC region that was conducted jointly by the IMF and World Bank. The report
covered the macroeconomic environment, financial system and banking sector
analysis, banking supervision and crisis management, payment systems and capital
markets. The Sectoral Council further noted the status of Implementation of previous
decisions on Economic Affairs, Bank supervision and Financial Stability, Accounting
and Finance, Human Resources, Information Technology, Legal, Currency and
Banking, Payments and Settlement Systems and Financial Markets.
The Sectoral Council
(a) directed the Central Banks to (i) develop a framework for compliance with capital account convertibility by
May, 2014;
(ii) monitor and analyse the impact of short term capital movements on the
EAC Partner States by May, 2014;
(iii) formulate a harmonized Financial Literacy program relating to financial
markets development and instruments by May 2014;
(iv) harmonize the cheques standards by December 2014;
(v) set the timelines for the various studies and report progress to the next
meeting of the SCFEA;
(b) directed the EAC Secretariat to convene a regional stakeholder validation
workshop on the draft study report on the assessment of the Pension Sector
within the EAC Region towards the end of November 2013;
(c) directed the Republics of Burundi, Rwanda, Uganda and the United Republic
of Tanzania to develop proposals for benchmark bonds by May, 2014; and
(d) directed the United Republic of Tanzania to remove nine (9) of the remaining
thirteen (13) restrictions on the Capital Account by December 2013.
3.1.2.3 Progress Report by the Committee on Fiscal Affairs
The Sectoral Council noted that progress was being made on fiscal policy matters
specifically under public financial management that impact on Fiscal Policy, the
progress report on Tax Harmonisation, harmonisation of tax procedures in the EAC,
EAC Fiscal convergence matters in relation to transition to EAMU, Harmonisation of
Government Finance Statistics and the study on harmonisation of fiscal policies in
the context of EAMU.
On tax harmonisation, the Sectoral Council noted that the process of tax
harmonisation was on-going with focus on Excise Tax, Income tax and Value Added
Tax had. The Sectoral Council reviewed and approved the draft terms of reference
for the studies to develop a regional policy on excise tax and value added tax and
the terms of reference for the study to develop a regional policy on income tax.
The Sectoral Council also noted the progress made on developing the Code of
Conduct against Harmful Tax Competition and the Model EAC Tax Convention for
the Avoidance of Double Taxation and the Prevention of Fiscal Evasion. The
Sectoral Council further noted that only the Republic of Rwanda had undertaken
procedures required by her law to bring into force the Double Taxation Agreement
(DTA) for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion
Page 29
with Respect to Taxes on Income while the other Partner States are in the process of
also doing so. On harmonisation of Tax Procedures, the Sectoral Council noted that
the proposed areas for alignment are: taxpayer registration; tax filing and payment;
audit procedure; enforcement and recovery; and tax dispute resolution mechanisms.
The Sectoral Council
(a) approved the Terms of Reference of the study to develop (i) regional excise tax and value added tax policies; and
(ii) regional income tax policy;
(b) directed the Secretariat to establish a database on domestic taxes legislation
by December 2013 and periodically update the Committee on Fiscal Affairs on
the reforms undertaken in the respective taxes;
(c) took note of the progress made on conclusion of the Draft Model DTA and the
Code of Conduct against Harmful Tax Competition;
(d) directed the CFA to develop commentaries for the draft Model DTA by June
2014;
(e) directed the Partner States to bring into force the EAC DTA by April, 2014;
(f) recommended to Council to direct Partner States not to favour non-EAC
Partner States over EAC Partner States in their DTAs;
(g) took note of the progress made on Harmonisation of Tax Procedures;
(h) adopted the areas of procedures to be aligned and direct the EAC Secretariat
to facilitate the drafting of the aligned procedures in the areas identified;
(i) approved that the method of harmonization in the medium term should be a
set of aligned tax procedures implemented through Directives issued by the
Council of Ministers; and
(j) directed the Secretariat and the Partner States to Implement the Roadmap
within the recommended timelines.
3.1.2.4 Report of the EAC Public-Private Partnership (PPP) Diagnostic Study
The Sectoral Council noted that PPPs are an important mechanism in tackling Africa
Infrastructure deficit while simultaneously improving the quality of infrastructure
services and PPPs have a potential in addressing the sizeable deficit in
Infrastructure in the EAC. The Sectoral Council further noted that
(a) a diagnostic study which sought to examine the potential role of regional
institutions in developing PPP markets, which encompasses both upstream
and downstream aspects of the PPP project preparation cycle had been
undertaken;
(b) the Multi-Sectoral Council meeting on the documentation for the 2nd EAC
Heads of State Summit Retreat on Infrastructure Development and
Financing held in Kigali, Rwanda from 12th15th November, 2012 among
others considered the report of the diagnostic study and, among others (i) directed the Secretariat to forward to the Partner States the Diagnostic
Study Report and the recommendations of the Regional Committee
held in Kigali, Rwanda on the 12th November 2012 for review and
comments; and
Page 30
Page 31
3.2
INFRASTRUCTURE
3.2.1 Introduction
The Council was informed that the 10th Meeting of the Sectoral Council on TCM was
held in Kigali, Rwanda from 19th - 23rd August 2013, in accordance with the EAC
Calendar of Activities for the period July December, 2013. The Sectoral Council
among other matters considered the progress of implementation of the previous
decisions of the Summit and Council of Ministers and the operational decisions on
various projects and programmes under transport and works, civil aviation and
airports, maritime transport and ports, communications and meteorology. The
Sectoral Council further considered the activities and reports of the EAC Civil
Aviation Safety and Security Oversight Agency (CASSOA) and the relevant
infrastructure issues under the Lake Victoria Basin Commission (LVBC).
The full report of the 10th Meeting of the TCM Sectoral Council is part of the
compendium documentation for this meeting.
3.2.2 Previous Decisions of the Summit and Council
The detailed matrix on the implementation of previous decisions and directives of the
Summit and Council under TCM is reported under Part I of this Background Paper.
3.2.3 Operational Decisions of the 10th Meeting of the Sectoral Council on
TCM
Several operational decisions under the subsectors over-sighted by the TCM were
made at its 10th Meeting.
3.2.3.1 Policy related decisions of the 10th TCM Sectoral Council
The following policy related recommendations and decisions were made 3.2.3.1.1 Roads
The Sectoral Council considered the activities under roads sub sector and among
others recommended to Council that on the launch of the reconstruction and
rehabilitation works for Arusha Voi Road and the official launch of the completed
Namanga border post to decide respectively that (a) The official launch of the works for the upgrading, reconstruction and
rehabilitation of the Arusha Holili/Taveta Voi Road and the official opening
of the completed Holili / Taveta OSBP, be done at a site in Kenya to be
determined by the Projects Steering Committee in consultation with the
respective Partner States in April, 2014 during the Extra Ordinary Summit;
and
(b) The official opening of the completed Namanga OSBP be held in April 2014
on the Tanzanian side at a site to be determined by the Projects Steering
Committee in consultation with the respective Partner States
Page 32
The Sectoral Council noted that at its 21st Meeting, held on 30th November 2010, the
Council received the above Strategy and its Action Plan and referred the same to the
Joint Meeting of the Sectoral Councils on Cooperation in Defense, Inter State
Security Foreign Policy Co-ordination for adoption and to include the Sectoral
Council on TCM. The ESA/IOC Regional Strategy and Action Plan to combat piracy
in the Indian Ocean, was developed collectively by the EAC,IGAD,COMESA and
IOC and had earlier been adopted in October 2010 in Mauritius by Ministers
responsible for maritime security.
The 4th Joint Meeting of the Sectoral Councils on Cooperation in Defense, Inter State
Security and Foreign Policy Co-ordination in compliance with the decision of the
21st Meeting of the Council to include the Sectoral Council on Transport,
Communications and Meteorology (TCM) had (a) directed the Secretariat to submit the Strategy and its Action Plan to Partner
States for comments before the 10th Sectoral Council TCM Meeting;
(b) directed the Secretariat to ensure that the Strategy and its Action Plan is on
the agenda of the 10th Meeting of the Sectoral Council on TCM; and
(c) directed Partner States to include members of the Sectoral Councils on
Cooperation in Defense, Inter State Security and Foreign Policy Co-ordination
in the 10thMeeting of the Sectoral Council on TCM;
Pursuant to the foregoing, the Sectoral Council considered the East and Southern
Africa (ESA)/Indian Ocean (IO) Maritime Security Strategy and Action Plan and
recommended to Council to adopt Strategy and its Action Plan for Implementation.
2)
Page 33
The Council was informed that draft Meteorological Data Policy was considered by
the 9th Meeting of the Sectoral Council on TCM and referred it to the Council for
approval. The Meteorological Data Policy will guide the region on matters regarding
observations, sharing and archiving of meteorological data. The Data Policy was
considered by the Council at its 25th Meeting held on 27th29th August 2012. The
Council approved the Meteorological Data Policy vide decision (EAC/CM
25/Decision 19). The Meteorological Data Policy was signed during the 10 th Meeting
of the Sectoral Council on TCM.
3)
The Council was further informed that at its 20th Meeting, held on 19th26th March
2010, the Council directed the EAC Secretariat to update the EAC Five Year
Meteorological Development Plan and Investment Strategy (20062010) (taking into
account the needs of Rwanda and Burundi) and refocus it to address Sectoral needs
rather than Meteorological infrastructure in order to attract donor support
(EAC/CM 20/Decision 20).
Page 34
The Draft Protocol was considered and approved for signature by the 14 th Summit of
EAC Heads of State on 30th November 2012. During the 10th Meeting of the Sectoral
Council on TCM, the approved Protocol was signed by the Ministers.
2)
Page 35
The Sectoral Council (a) took note i) of the Projects prioritized by the Heads of State at their 2 nd Retreat on
Infrastructure Development and Financing;
ii) that the Heads of State institutionalized the holding of the Retreat on
Infrastructure Development and Financing biennially; and
iii) that the 3rd Retreat on Infrastructure Development and Financing at the
Heads of State level will be held in November, 2014.
(b) directed Partner States to set aside necessary resources to implement the
Priority Projects in (a) (i) above;
(c) directed the Secretariat to i) assist Partner States to mobilize resources to implement the Priority
Projects;
ii) develop a draft ten years Investment Strategy for the priority projects with
clear time frames as directed by the Summit and share with Partner States
by end of October, 2013;
iii) bring up for consideration the draft Investment Strategy in (c) (ii) above for
consideration at the 4th Extraordinary TCM in November, 2013;
iv) fast track the finalization of the Regional PPP Framework and the EAC
Development Fund Legal Framework;
v) follow up on the recommendations of the Infrastructure Match-Making
Conference held in Kampala, Uganda in July, 2013 and in particular the
establishment of vi) a monitoring platform at EAC level for overseeing the implementation of
regional infrastructure projects; and
vii) an EAC Regional Infrastructure Guarantee Fund or Credit Enhancement
Programme;
viii) commence the preparations for the 3rd Retreat of the Heads of State to
ensure early finalization of the required documentation early enough; and
ix) Report the priority projects to the Tripartite for inclusion in the
development of the Tripartite Infrastructure Master Plan.
The Council noted that in view of the fact that the 3 rd Heads of State Retreat on
Infrastructure Development and Financing is due in November, 2014, all the
directives of the Heads of States during their 2 nd Retreat should be fully
implemented. The Council called on Partner States and the Secretariat to ensure
that directives of the Heads of States at their 2 nd Retreat are prioritised for
implementation.
The Council directed the Secretariat to finalise the development of the 10 year
investment programme for the prioritised projects in order to give the Partner States
a framework upon which to plan their infrastructure investments in line with the
Heads of States directive. The Secretariat was directed to share a draft with the
Partner States by end of January 2014.
The Council
(a) adopted the decisions of the 10th Meeting of the Sectoral Council on
TCM (EAC/CM 28/Decision 27);
Page 36
(b) approved the East and Southern Africa (ESA)/Indian Ocean (IO) Maritime
Security
Strategy
and
Action
Plan
for
Implementation,
(EAC/CM 28/Decision 28);
(c) directed the Secretariat to convene a Multi-Sectoral Working Group of
Experts by February 2014 to develop a comprehensive strategy for
Partner
States
to
address
maritime
safety
matters
(EAC/CM 28/Directive 11);
(d) referred to the Pre-Budget Consultations of Ministers of Finance and the
Sectoral Council on Trade, Industry, Finance and Investment the
proposed recommendations of the 10th Meeting of Sectoral Council on
TCM to
i) amend the description of code HS 8528.71.00 for digital broadcast
receivers in Legal Notice EAC/30/2012 to read digital broadcast
receiving equipment for television; and
ii) zero rate duty on all broadcast ICT products to the Sectoral Council
on Trade, Industry, Finance and Investment for consideration
(EAC/CM 28/Decision 29);
(e) referred the Draft Protocol on co-operation in Meteorological Services to
the 16th Meeting of the Sectoral Council on Legal and Judicial Affairs,
(EAC/CM 28/Decision 30);
(f) adopted the Five Year Development Plan and Investment Strategy (2013
2018) (EAC/CM 28/Decision 31); and
(g) directed the Secretariat to expedite the conclusion of the 10 years
Investment Strategy on the priority projects and share the draft with
Partner States by end of January, 2014 (EAC/CM 28/Directive 13).
PART IV
4.1
SOCIAL SECTORS
The Sectoral Council took note that the seven strategies were developed as directed
by the Council to provide the general direction in the implementation of the
harmonization process and adopted the following seven Draft Harmonization
Strategies which include
Page 37
(i)
(ii)
(iii)
(iv)
(v)
The Sectoral Council took note of the adjudication process and the observations
made by the adjudicators as well as the topic chosen for 2013 Essay writing
Competition. It congratulated all the 2012 EAC secondary school essay winners;
Directed the EAC Secretariat to increase the funding of the essay writing competition
to cater for
i) Publicity of the event;
ii) Transport for the selected teams; and
iii) Participation of Head teachers of winning schools in EAC tour.
It urged the chair of the Council and the Secretary General to prevail over the
allocation of required funds for the essay writing competition. It also urged Partner
States to sensitize their students to participate in essay writing competitions and for
the ministries responsible for EAC Affairs to widely disseminate EAC publications.
The SCESTCS directed the EAC Secretariat to explore scientific topics from year 2014
to be included among domains of secondary schools competitions.
Page 38
(3)
The Sectoral Council took note of the progress made on the operationalization of the
East African Science and Technology Commission, (EASTECO), and forward to the
Council of Ministers for consideration. It directed the EAC Secretariat to implement
the directive of the 26th Meeting of the Council and submit the basic requirements of
offer to host attached hereto as Annex XVIII to the Council for deliberation and
adoption. The Sectoral Council requested the Council to ensure that there is budget
allocation for operationalization of EASTECO in the EAC budget for FY 2014/15.
(4)
The Sectoral Council took note of the negotiations on the Headquarters Agreement
between EAC Secretariat and the Republic of Rwanda. It directed the EAC
Secretariat to ensure that the conclusion of this Agreement should await the
approval of the criteria as stipulated in the offer to host EAC Organs and Institutions.
The Sectoral Council directed EAC Secretariat to forward the Headquarters
Agreement to the Sectoral Council of Legal and Judicial Affairs before it is signed.
The Council noted that pursuant to Article 138 of the Treaty conclusion of
Headquarters Agreement is an affair between the Secretary General and the host
Partner State. Therefore there is no need for the Council to refer the draft
Headquarters Agreement to the Sectoral Council on Legal and Judicial Affairs.
(5)
The Sectoral Council took note of the progress on reviewed criteria and scoring grids
for Technical Vocational Education and Training (TVET), Tertiary Education
Institutions and Universities, Research and ICT, Culture, Language and Tourism
Institutions and Curriculum/Assessment Institutions be adopted as the standard
scoring grids for verification of Centres of Excellence in their respective categories. It
directed the EAC Secretariat to circulate the reviewed criteria, scoring grids and
guidelines to the respective Sectoral Councils and Partner States for input. It further
directed the EAC Secretariat to source for funds and convene an Experts Meeting to
develop the benchmarks; quality assurance strategy, monitoring and evaluation
framework for operationalization of the EAC Centres of Excellence.
(6)
The Sectoral Council considered and adopted the draft concept paper on the
sustainability of the EAC designated Centres of Excellence. It recommended to the
Council of Ministers to allocate required resources for the operationalization and
sustainability of the designated Centres of Excellence. The Sectoral Council directed
the EAC Secretariat in collaboration with Chief Executive Officers to mobilise the
required resources for the operationalization and sustainability of the designated
Centres of Excellence. It also directed the EAC Secretariat to develop benchmark
Page 39
The Sectoral Council took note of the activities implemented by the Inter-University
Council for East Africa (IUCEA).and directed IUCEA to
(i) expedite the finalization of the study to establish the University students fee
unit costs prevailing in the Partner States and present the report to the
28th Meeting of the Council; and
(ii) expedite harmonization of Teacher Education degree programmes and
present the to the 29th Council of Ministers.
(8)
The Sectoral Council directed that (i) Partner States integrate the six strategic objectives into their National HIV and
AIDS operational plans;
(ii) EAC Secretariat to develop a framework within which Partner States report;
and
(iii) Partner States to report the progress on implementation biannually.
(9)
The Sectoral
(i) implement the directive of the Sectoral Council on Legal and Judicial Affairs to
prepare draft regulations and identify the outstanding legal issues on the
Annex on Mutual Recognition of Academic and Professional Qualifications
and circulate to Partner States for comments;
(ii) develop procedures on how MRAs shall be negotiated and be deposited with
the EAC Secretariat to be formally adopted as instruments of the Community.
Page 40
The Sectoral Council urged Partner States to update the list of competent authorities
for the statutorily regulated professions.
(10)
The Sectoral
Council took note of the three signed MRAs of the EAC Engineers, EAC
Architects and the EAC Accountants. It directed the Secretariat to establish a clear
mechanism on how signed MRAs deposited with the EAC Secretariat shall be
formally adopted as instruments of the Community; and report to the 12 th Meeting of
the Sectoral Council. The Sectoral Council recommended to the Council to urge
Partner States to harmonise their statutory regulatory authorities.
(11)
The Sectoral Council directed the Secretariat to convene a meeting on African Union
Plan of Action to develop a regional reporting framework and an annual report. It
urged Partner States to assign Focal officers in Ministries responsible for Education
to deal with matters on COMEDAF/AU matters.
(12)
The Sectoral Council took note and commended the Republic of Rwanda for
successfully hosting of the 1st Edition of the EAC Arts and Culture Festival 2013. It
also took note of the Festival documentary film and Festival report. It further took note
of the offer made by the Republic of Kenya to host of the 2 nd Edition of the EAC Arts
and Culture Festival. The Sectoral Council commended Partner States for the
commitment and support of their respective contingents to attend the Festival in
Kigali Rwanda; and the EAC Secretariat for the good Co-ordination of the Regional
Steering Committee activities which facilitated the successful hosting of the Festival.
The Sectoral Council directed the Secretariat to expedite the dissemination of the
Festival Documentary film and Report; and urged Partner States to prioritize culture
and sports in their national programmes.
(13)
The Sectoral Council took note that the preparatory activities in the implementation
of the Council decisions to hold the 1st Edition of the EAC Sports tournament in the
year 2014 will not be carried out due to lack of budget allocation in the EAC budget
FY 2013/2014.
The Sectoral Council directed the EAC Secretariat to
(a) source the required funds to facilitate the preparatory activities of the
1st Edition of the EAC Sports Tournament; and
Page 41
(b) to mainstream all regional culture festivals and sports tournaments organized
by the private sector into EAC program activities for show casing the
Community.
(14)
The Sectoral Council took note of the progress made on the operationalization of the
East African Kiswahili Commission. It congratulated the Republic of Uganda for
ratifying the Protocol for the Establishment of the Kiswahili Commission and urged
Partner States which have not yet ratified the Protocol to do so by 31st December
2013. It requested the Council to ensure that there is budget allocation for
operationalization of the Kiswahili Commission in the EAC budget for FY 2014/15.
(15)
The Sectoral Council noted with appreciation that the Republic of Uganda
successfully hosted 12th Edition of the EAC Secondary Schools Games and Sports
Competition organized by the Federation of East African Secondary School Sports
Association (FEASSSA) which were held in Lira town from the 25th August 2nd September 2013. The Sectoral Council commended all Partner States for their
active participation in the games and congratulated the Republic of Kenya for
winning 19 gold medals and the Republic of Uganda for winning 13 gold medals.
The Sectoral Council took note of East African outstanding performance in the world
athletic championships 2013; congratulated the Republics of Kenya and Uganda for
the outstanding Performance in the 2013 World Athletics championships. It
commended the Republic of Uganda for the successful hosting of the 12th Edition of
the East African secondary school games and sports competition and urged EAC
Partner States to invest more in the development of Sporting talents in the region.
The Council noted the need for the Community to standardise the Headquarters
Agreements. The Council was informed that the Secretariat is in the process of
formulating a model Headquarters Agreement which will guide all other headquarters
agreements to be negotiated.
The Council
(a) adopted decisions of the 11th Meeting of the Sectoral Council on
Education,
Science
and
Technology,
Culture
and
Sports
(EAC/CM 28/Decision 32); and
(b) adopted the proposed amendment to the criteria and administrative
procedures for the seating of the EAC Organs and Institutions by
incorporating
the
Basic
Requirements
of
offer
to
Host
(EAC/CM 28/Directive 14).
Page 42
PART V
5.1
POLITICAL AFFAIRS
Page 43
meeting that comments on model structure will be submitted during the session of
Permanent Secretaries.
Burundi convened a high-level national consultation workshop covering a wide range
of stakeholders including government departments, civil society organizations and
the media.
5.1.3 Analysis of the Comments
The meeting noted that despite the fact that consultations took place, the people
consulted did not have a deeper understanding of the implications of the model
structure proposed. The level of consultations on the model is too technical for
ordinary people to make objective comments. As such it requires selected target
groups that will be able to understand it and make valuable comments. Further to
that, the methodology for national consultations with stakeholders was not
harmonized and therefore, the results are not comparable.
The Partner States comments indicate that there is need for more elaboration on the
scope of competences at federal, constituent, and the concurrent power levels,
implications on international obligations, debts and assets; rationale and historical
context, establishment and membership, election and tenure of presidency;
composition, election and tenure of legislators. There is need for elaborating on the
proposed federal institutions with their functions in detailed legal instrument
(Treaty/Constitution). Based on the summary of findings above, there is need for
development of a legal instrument (Treaty/Constitution) that will elaborate on the key
issues pertaining to the federation. In addition, Partner States should implement fully,
the stages of integration preceding the political federation in order to realize tangible
benefits (quick wins) and build confidence among the people for the federation.
Further, there is need to strengthen the pillars of political federation by reinforcing
peace and security, good governance and foreign policy coordination in the Partner
States. Detailed comments from the Partner States are attached hereto as
Annex XIX.
The Republic of Rwanda and Uganda noted the importance of strengthening the
pillars of a political federation by reinforcing peace and security, good governance
and foreign policy coordination as well as effectively implementing the Customs
Union, Common Market and Monetary Union in order to lay the foundation for a
political federation.
The Republic of Kenya, Uganda and Rwanda are of the view that in order to
elaborate and improve on the model, the Council should constitute a regional team
of experts to develop a draft federal constitution/Treaty that would be used as the
basis for further consultations and sensitization on the political federation.
The United Republic of Tanzania informed the Council that she has submitted her
comments on EAC Model of the Structure, Roadmap and Action plan of the EAC
Political Federation.
Page 44
Page 45
PART VI
6.1
The Council was informed that the meeting of the Sectoral Council on Trade,
Industry, Finance and Investment (SCTIFI) Ref. EAC/SR/167/2013 was held on
14th 19th November 2013 and considered progress reports on -
Page 46
(d)
(e)
(f)
(g)
The SCTIFI also considered a request by the Republic of Rwanda to stay application
of the CET on imported sugar.
6.1.1 SCTIFI Decisions with Policy and Financial Implications
The SCTIFI made the following decisions that have financial and policy implications 6.1.1.1 Draft EAC NTBs Bill
Pursuant to the Council directive during its 22nd Meeting of April 2011, that the
Secretariat sources for funds to develop a legally binding enforcement mechanism
on the elimination of NTBs, the EAC with the support of Trade Mark East Africa
contracted a consultant who prepared a draft Bill on a legally binding enforcement
mechanism on the elimination of NTBs. The Draft Bill was subjected to national
stakeholders workshops in May and June 2013 and the comments were
incorporated in the Draft Bill. The Draft EAC NTBs Bill is hereto attached as
Annex XX. The SCTIFI recommended to the Council to refer the draft Bill to the
Sectoral Council on Legal and Judicial Affairs for legal input.
6.1.1.2 The EAC Export Promotion Strategy 2013 - 2016
The formulation of a draft EAC Export Promotion Strategy 2013 2016 has been
undertaken in accordance with Article 5 of the EAC Treaty that seeks to widen and
deepen cooperation among Partner States with a specific emphasis on the
importance of export trade and in line with the 4th EAC Development Strategy.
The draft Strategic Plan has brought in four crucial pillars that include: production,
marketing, business environment and institutional capacity building. The production
pillar envisages; building regional structures to encourage adoption of technology,
availing affordable finance to facilitate export diversification and development. The
marketing pillar emphasizes on the; need to finalize strategic partner negotiations,
enable exporting firms to meet high value export markets and EAC Trade Promotion
Organization (TPO) market penetration cooperation in strategic sectors and markets.
The third pillar is business environment where; infrastructure development is top of
the agenda, increasing competitiveness through reduction in cost of power,
elimination of NTBs, harmonizing and strengthening institutional regulatory
Page 47
framework to reduce cost of doing business within the EAC. The fourth pillar is
meant to address institutional capacity where export promotion agencies in Partner
States are to be strengthened to effectively execute export promotion activities. The
EAC Export Promotion Strategy 20132016 is hereto attached as Annex XXI.
The SCTIFI
(a) adopted the draft EAC Export Promotion Strategy 2013 - 2016; and
(b) directed the Secretariat to incorporate the required financing for the activities
Page 48
The Secretariat prepared a draft concept paper on a regional centre for adaptation
and transfer of manufacturing and industrial technologies, which was considered by
the Committee on Industrialization. The SCTIFI considered the draft concept note
and noted that a feasibility study should be carried out. The study should determine
viability of such a centre; assess possible locations for centre; explore options of
upgrading existing technology Centre to perform the functions anticipated to be
carried out by CATMIT; assess funding modalities, and management structure for
the centre among others. The Concept Note of the CATMIT is attached as
Annex XXIII.
The SCTIFI (a) took note of the draft concept note on the EAC Centre for Adaptation and
Pharmaceutical
Manufacturing
Plan
of
Action
The SCTIFI was informed that the Sectoral Council on Health had approved a plan
for pharmaceutical manufacturing at its 6th Ordinary meeting in April, 2011 and
directed the Secretariat to prepare TORS for a Steering Committee (EACRPMPOA
SC) to oversee the implementation of the Action Plan. The aim of EACRPMPOA is to
address the challenges of inadequate local production of quality pharmaceuticals
and over reliance on importation of finished pharmaceutical products from outside
the region, which hamper the development of pharmaceutical industry.
The SCTIFI was informed that at the level the Secretariat, the issues on
pharmaceutical manufacturing was being handled as part of industrialization
programme given that pharmaceutical manufacturing has been identified as strategic
region industry in the EAC industrialization policy and strategy. The Secretariat
therefore plans to undertake investment opportunity identification in the sector and
subsequently prepare an investment promotion strategy for the sector. The
Secretariat has further prioritized the following activities to address challenges in the
development of pharmaceutical industry
(a) implementation of local purchase preference scheme by national procurement
(b)
(c)
(d)
(e)
(f)
agencies;
regional pooled procurement of raw materials for the sector;
development of quality infrastructure for the manufacture of the products;
development of an inventory of essential medicines to be produced locally;
undertaking investment promotion for the sector; and
Strengthening of pharmaceutical regulation and value chain among other
initiatives.
The SCTIFI noted that the issue of pharmaceutical is a cross-cutting matter that
should be addressed jointly between industry and health, and as such a joint working
mechanism should be put in place so as to have a common approach to the
development of pharmaceutical sector. The SCTIFI directed the Secretariat to
Page 49
constitute a Joint Working Group between health and industry to jointly formulate
and discuss strategies for the development of pharmaceutical industry.
6.1.1.6 Strengthening Capacity of the Industrial Development Department at
the Secretariat
The SCTIFI recalled that during its meeting held on 2nd November 2012 in Arusha, it
had recommended to the Council to approve the establishment of a Directorate of
Industrialization within the on-going comprehensive institutional review process. The
Council during its meeting held in Nairobi, Kenya on 19 th 26th November 2012,
adopted the decisions of SCTIFI and directed that (a) the Secretariat prepares and submits the proposal to review and strengthen
Page 50
assessment and collection of revenue at the first point of entry and revenues
are remitted to the destination Partner States subject to the fulfilment of key
pre-conditions to be developed by the High Level Task Force (HLTF).
Following the Summit decision, the Council established the High Level Task Force
(HLTF) to develop implementation modalities and adopted the Terms of Reference
(ToRs) of the High Level Task Force. The Sectoral Council noted that HLTF had
developed a draft framework which consists of three pillars namely Free Circulation
of Goods, Revenue Management, Legal and Institution Framework. The key
components of the SCT framework are summarized hereunder (1)
(a)
The scope of free circulation of goods in the framework covers treatment of imported
goods in the EAC, intra-EAC transfer of goods, export of goods from Partner States
to markets outside the EAC, Port and Border Operations and Trade facilitation.
The main principles underlying this pillar are (a) Goods imported into the Customs Union, shall be entered only once at the
country of destination and released at the first port of entry to the destination
Partner State;
(b) A single regional bond system shall apply to enable movement of goods
within the territory;
(c) Transit regime shall only apply to goods originating from foreign country and
destined to a foreign country through the Partner States or a Partner State;
(d) Goods in transit shall be entered only once at the first point of entry;
(e) Locally produced goods for transfer from one Partner State to another shall be
entered only once in the destination Partner State and the information shall be
transferred to the originating Partner State;
(f) Where the facilities have been established, One Stop Border Post (OSBP)
model shall apply in accordance with the EAC OSBP Act.
(b)
Partner States have agreed to adopt a destination principle where assessment and
collection of revenue is at the first point of entry and revenues are remitted to the
destination Partner States subject to the fulfilment of key pre-conditions. The HLTF
noted that with the advancement and level of utilisation of Information technology in
customs clearance processes, it was found feasible for payment of duties to be
made at the point of destination prior or upon arrival of goods at the first point of
Page 51
entry where examination will be undertaken based on the level of risk. This would
remove the difficulties that will accrue in the transfer and remittance of funds
between Partner States.
The following principles shall apply under revenue management (a) Declaration process will be initiated in the destination Partner State;
(b) Taxes will be paid in the destination Partner State;
(c) Goods will be released upon confirmation that taxes have been paid or
appropriate customs procedures have been fulfilled and destination Partner
State will notify the first point of entry Partner State online;
(d) Effective information and communication systems.
(c)
The current structure at the EAC Secretariat for the management of the Customs
Union constitutes the Directorate of Customs and Trade which is facing shortage of
human resources capacity. To effectively support the implementation of SCT it is
imperative to fill the human resource gaps and to review both the current legal and
institutional framework of the Directorate of Customs and Trade.
(2)
SCT Roadmap
The roadmap on the implementation of SCT is an integral part of the Framework and
it identifies key activities and timelines to be undertaken until the SCT is fully
operational in July 2014.
The Roadmap for implementation of the SCT is as indicated below S/N
1.
2.
3.
4.
5.
6.
ISSUES
Adoption of Draft SCT Framework by the Council
Declaration of the Commencement of the SCT by
the Summit
Commencement of the final phase of SCT
Development of Customs Business Flows
Development of Enforcement and Compliance
procedures
Develop solutions for interconnecting customs
TIMELINES
November 2013
30th November 2013
January 2014
Jan- March 2014
Jan- March 2014
Jan- March 2014
Page 52
S/N
7.
8.
9.
10.
11.
12.
13.
14.
ISSUES
systems and Cargo tracking system
Develop a regional Bond management system.
Review of the capacity of the Directorate of
Customs
Review existing laws to cater for ICT, Regional
bond and working relationships
Develop Capacity Building and Change
Management Interventions
Considerations of the TWGs reports by SCTIFI
Considerations of the proposal CMA amendment by
SCTIFI and Legal and Judicial Affairs Sectoral
Councils
Submission of the proposed EAC CMA
amendments to EALA
Full operationalization of the SCT
TIMELINES
Jan- March 2014
Jan- March 2014
Jan- March 2014
Jan-March 2014
April 2014
April 2014
May 2014
June 30th 2014
The Sectoral Council considered and adopted the Draft Framework on the
operationalization of SCT and commended the HLTF for finalizing the work as
directed by SCTIFI in June 2013. The Framework for the operationalization of the
SCT is hereto attached as Annex XXIV.
The SCTIFI (a) adopted the draft framework on the operationalization of the SCT and the
roadmap therein;
(b) recommended to the Council to sign the framework and recommend to the
Summit to declare 1st January 2014 as the commencement of the final phase
of the Single Customs Territory;
(c) recommended to Council to fill the human resource gaps of the Directorate of
Customs and Trade with additional staff and structures to enable it implement
the SCT;
(d) directed the Secretariat to finalise all operational requirements for the smooth
implementation of SCT by June 2014; and
(e) commended the HLTF for a job well done.
The Council noted that the 1.5% levy imposed on imports by the Republic of Kenya
for railway development was inconsistent with the EAC Customs Union Protocol as it
is a charge of equivalent effect for which Partner States agreed to remove.
The Council
(a) adopted the decisions of the Sectoral Council on Trade, Industry,
Finance and Investment (EAC/CM 28/Decision 33);
(b) referred the draft EAC NTB Bill to the 16th Meeting of the Sectoral
Council
on
Legal
and
Judicial
Affairs
for
legal
input
(EAC/CM 28/Decision 34);
(c) referred the draft EAC Anti-Counterfeit Bill to the 16th Meeting of the
Sectoral Council on Legal and Judicial Affairs for legal input
(EAC/CM 28/Decision 35);
Report of the 28th Meeting of the Council, November 2013
Page 53
PART VII
7.0
The Council was informed that the East African Community Budget Act, 2008
Section 3(1) requires the Secretary General to prepare the budget of the Community
and submit it to the Council for consideration not later than the 15 th October in each
financial year. Further to this, Section 4(1) demands the Council of Ministers to
submit and lay the EAC-Budget for the next financial year before the Assembly not
later than the 30th April in each financial year. These requirements pose challenges
to the Community considering the current arrangement where the Council considers
the budget in March or April.
With regard to trying to address the mentioned deadlines by the Act, the EAC has
shortened the budgeting cycle and prepared its Budget Proposal for the Financial
Year 2014/2015. The proposal is based on the key priorities arising from the prebudget conference and considered and approved by the 27 th Meeting of the Council
held in Arusha in August 2013. This new development will also allow the Partner
States to have time for consultations on the proposed activities and cost. Thereafter,
an Extra-Ordinary Council Meeting scheduled for February 2014 will consider the
Budget for the Financial Year 2014/2014 for adoption and subsequent transmission
to EALA for debate and approval within the Budget Act (2008) deadlines. The
Council observed that there is no adequate information on the proposal to amend
Section 3(1) and therefore there is need for the Secretariat to prepare a concept
paper pointing out challenges encountered in the implementation of the said section.
The proposal will therefore be referred to the relevant Sectoral Council for
consideration.
The Council directed the Secretariat to prepare a detailed concept paper on the
challenges encountered in implementing Section 3(1) of the Budget Act and
submit it to the 29th Meeting of the Council for consideration
(EAC/CM 28/Directive 22).
Page 54
The total budget for Financial Year 2014/2015 amounting to US$ 134,316,019 is
allocated to the Organs and Institutions namely EAC-Secretariat, EALA, EACJ and
LVBC, LVFO and IUCEA and is indicated in Table 1 below Table I: Total Budget Proposal
ORGAN/INSTITUTION
EAC-Secretariat
East African Legislative Assembly
East African Court of Justice
Lake Victoria Basin Commission
FY 2013/2014
(in USD)
69,787,824
13,866,032
4,279,489
30,376,272
FY 2014/2015
(in USD)
70,360,950
14,743,451
4,338,579
30,285,140
CHANGE (in
USD)
573,126
877,419
59,090
(91,132)
3,203,041
9,692,784
2,593,110
8,091,348
(609,931)
(1,601,437)
-19.0%
-16.5%
1,894,400
2,009,041
1,894,400
2,009,041
0.0%
0.0%
131,205,442
134,316,019
3,110,577
2.4%
FY 2013/2014
(in USD)
FY 2014/2015
(in USD)
CHANGE (in
USD)
38,073,491
45,296,736
7,223,245
115,023
19.0%
2.4%
4,856,360
88,069,741
205,850
131,205,442
4,971,382
83,842,050
205,850
134,316,019
(4,227,691)
(0)
3,110,576
-4.8%
0.0%
2.4%
%-CHANGE
0.8%
6.3%
1.4%
-0.3%
EXPECTED REVENUE
SOURCE OF REVENUE
Partner States - MEAC
Other Ministries (Higher Education &
Fisheries Department)
Development Partners
Other Income
Total
%-CHANGE
Category
Partner States
(in USD)
25,191,162
19,558,513
5,724,294
50,473,969
Development
Partners (in
USD)
7,639,023
5,608,606
70,594,421
83,842,050
Total Budget
(in USD)
32,830,186
25,167,118
76,318,715
134,316,019
24%
19%
57%
1.0
Page 55
Table III:
Priority Description
Total Allocation
1,569,920
41,594,213
1.2%
31.0%
22,374,695
16.7%
2,609,075
1.9%
848,500
0.6%
333,850
0.2%
4,786,362
885,000
3.6%
0.7%
5,215,105
3.9%
592,175
1,839,020
0.4%
1.4%
51,668,103
134,316,019
38.5%
100%
The Council took note of the above progress (EAC/CM 28/Decision 41).
7.1 REPORT OF FINANCE AND ADMINISTRATION COMMITTEE MEETINGS
7.1.1 Finance Matters
7.1.1.1 Status of Partner States Budgetary Contributions
(I)
The Council noted the status of the Partner States Budgetary contributions towards
EAC Organs and LVBC as at 18th November 2013 is as shown in Table IV below Table IV:
PARTNER STATE
CONTRIBUTION DUE
2013/14
TOTAL
OUTSTANDING
Republic of Kenya
United Republic of Tanzania
7,614,698.30
7,614,698.30
4,298,558.88
3,703,337.93
56.45%
48.63%
3,316,139.42
3,911,360.37
Republic of Uganda
7,614,698.30
4,072,867.31
53.49%
3,541,830.99
Republic of Rwanda
Republic of Burundi
Total
7,614,698.30
7,614,698.30
38,073,491.50
3,807,149.00
1,578,918.13
17,460,831.25
50.00%
20.74%
45.86%
3,807,549.30
6,035,780.17
20,612,660.25
Page 56
Republic of Kenya
United Republic of Tanzania
Republic of Uganda
Republic of Rwanda
Republic of Burundi
Total
CONTRIBUTION DUE
2013/14
3,713,799.10
3,713,799.10
3,713,799.10
3,713,799.10
3,713,799.10
18,568,995.50
TOTAL
OUTSTANDING
2,096,469.68
1,806,171.77
1,207,732.07
1,856,801.93
770,061.33
7,737,236.78
1,617,329.42
1,907,627.33
2,506,067.03
1,856,997.17
2,943,737.77
10,831,758.72
56.45%
48.63%
32.52%
50.00%
20.74%
41.67%
Republic of Kenya
United Republic of Tanzania
Republic of Uganda
Republic of Rwanda
Republic of Burundi
Total
CONTRIBUTION DUE
2013/14
765,953.00
765,953.00
765,953.00
765,953.00
765,953.00
3,829,765.00
432,386.67
372,514.14
249,088.86
382,956.37
158,821.40
1,595,767.45
56.45%
48.63%
32.52%
50.00%
20.74%
41.67%
TOTAL
OUTSTANDING
333,566.33
393,438.86
516,864.14
382,996.63
607,131.60
2,233,997.55
Republic of Kenya
United Republic of Tanzania
Republic of Uganda
Republic of Rwanda
Republic of Burundi
Total
CONTRIBUTION DUE
2013/14
2,623,708.70
2,623,708.70
2,623,708.70
2,623,708.70
2,623,708.70
13,118,543.50
1,481,104.82
1,276,016.40
2,449,791.31
1,311,785.39
544,029.60
7,062,727.51
56.45%
48.63%
93.37%
50.00%
20.74%
53.84%
TOTAL
OUTSTANDING
1,142,603.88
1,347,692.30
173,917.39
1,311,923.31
2,079,679.10
6,055,815.99
Republic of Kenya
United Republic of Tanzania
Republic of Uganda
Republic of Rwanda
Republic of Burundi
Total
CONTRIBUTION DUE
2013/14
511,237.50
511,237.50
511,237.50
511,237.50
511,237.50
2,556,187.50
288,597.71
248,635.62
166,255.07
255,605.31
106,005.80
1,065,099.51
56.45%
48.63%
32.52%
50.00%
20.74%
41.67%
TOTAL
OUTSTANDING
222,639.79
262,601.88
344,982.43
255,632.19
405,231.70
1,491,087.99
The Council took note of the Status of Partner States contributions towards
the EAC Organs and LVBC budget for the Financial Year 2013/14 as at
18th November 2013 (EAC/CM 28/Decision 42).
Page 57
(II)
(a)
The Council was informed that the Republic of Rwanda and the Republic of Uganda
were the only Partner States that had so far made contributions for the IUCEA
budget for the Financial Year 2013/14. The status of the Partner States contributions
as at 18th November 2013 is as shown in Table V(a) below Table V(a): Status of Partner States
18th November, 2013
PARTNER STATE
Republic of Kenya
United Republic of Tanzania
Republic of Uganda
Republic of Rwanda
Republic of Burundi
Total
CONTRIBUTION
DUE 2013/14
809,242
809,242
809,242
809,242
809,242
4,046,209
Contributions
to
CONTRIBUTION
PAID 2013/14
0%
0%
79,157
10%
401,394
50%
0%
480,551
12%
IUCEA
as
at
OUTSTANDING
FOR 2013/14
809,242
809,242
730,085
407,848
809,242
3,565,658
The Council noted the Secretariats request to have the funds remitted earlier during
the financial year so as to facilitate implementation of the planned activities for the
first half of the year. The proposal was to have at least 30% of the total amount
budgeted for all Organs and Institutions remitted by 30 September each financial
year. However, the Council discussed the proposal and noted that the earlier
decision by the Council to have the funds remitted in full by 31st December was
sufficient.
The Council reiterated its previous directive directing Partner States to remit
their full contribution for the Financial Year 2013/14 by 31 st December 2013
(EAC/CM 28/Decision 43).
(b)
The Council was informed that as previously reported to the Council of Ministers
Partner States owed the Inter-University Council for East Africa (IUCEA) at different
levels: arrears before the IUCEA revitalization (1980-2000), after IUCEA
revitalization (2000-2012) as well as arrears accumulated due to non-remittance for
the FY 2012/13.
The Council was also informed that status of arrears before 30 th June 2012 and
unremitted funds for the Financial Year 2012/13 were as presented in Table V(b)
below -
Page 58
Republic of Burundi
Republic of Kenya
Republic of Rwanda
United Republic of Tanzania
Republic of Uganda
Arrears
Unremitted
Amount Paid Outstanding
before 30th funds for FY as at 30th
for 2012/13
June 2012
2012/2013
June 2013
1,039,996
303,180
1,343,846
4,483,202
153,465
4,329,737
3,609,041
42,646
3,651,687
2,591,494
692,254
3,283,748
Total
11,723,734
1,038,750
153,465
12,608,348
The Lake Victoria Fisheries Organization has continued to operate with borrowings
from the Staff Gratuity Account and other sources as Partner States have not fully
paid their outstanding contributions for the FY 2012/2013, and no funds remitted for
the current financial year (FY 2013/2014). The status of country contributions was as
summarized in Table VI below
Table VI:
No
Contributions
due
(2013/2014)
159,407.17
270,050.00
429,457.17
Republic of Kenya
United Republic of
Tanzania
346,333.82
270,050.00
Republic of Uganda
389,482.56
270,050.00
Total
895,223.55
810,150.00
State/Country
Total
Contributions
due (2012-2014
Contributions
received
Balance due
(2012-2014)
0.0
429,457.17
616,383.82
17,812.95
598,570.81
659,532.56
111,462.45
548,070.11
1,705,373.55
129,275.40
1,576,098.15
Page 59
The borrowings have resulted into failure by the Institution to pay service gratuity to
Staff whose employment contracts with the organization ended as detailed in
Table VII below
Table VII:
No.
1
2
3
4
5
6
Position
Senior Fisheries Management Officer
Finance and Administrative Officer
Deputy Executive Secretary
Secretary to the ES
Senior Scientist
Executive Secretary
The Council was informed that following the directive of the 24 th Council of Ministers
(EAC/CM24/Directive 52), LVFO budgets had been partially streamlined in the EAC
budget framework, as the FY 2013/2014 budgets went through the approval process
of EAC and LVFO now had a Budget Code (Vote No. 06) under the EAC
Appropriation Act 2013. However, contributions were still through the Ministries
Responsible for Fisheries; a method of contribution that had continued to pose
operational challenges for the Institution. In order to mitigate these challenges, LVFO
was requesting for direct contributions through the Ministries responsible for EAC
Affairs to the Secretary General as is the case for other institutions of EAC.
The Council noted the need for the Secretariat to borrow resources from the General
Reserve Fund to pay gratuity to LVFO staff whose contracts have expired and have
not yet been paid.
The Council
(a) took note of the status of the three Partner States contributions as at
20th November 2013 (EAC/CM 28/Decision 44);
(b) directed the Secretariat to borrow resources from the General Reserve
Fund to pay gratuity to LVFO staff whose contracts have expired and
have not yet been paid (EAC/CM 28/Directive 24);
(c) directed the Republic of Kenya, the United Republic of Tanzania and the
Republic of Uganda to clear their outstanding contributions for financial
year 2013/2014 (EAC/CM 28/Directive 25); and
(d) directed LVFO to refund the money it has borrowed from the EAC
General Reserve Fund immediately upon receipt of contributions from
the Republic of Kenya, The United Republic of Tanzania and the
Republic of Uganda (EAC/CM 28/Directive 26).
(IV)
(a)
The Council was informed that the Evaluation Committee for bids for the
Construction of the IUCEA Headquarters constituting members from each of the
Page 60
EAC Partner States, IUCEA staff, the Consultant Symbion (U) Ltd and Technical
team from the Uganda Ministry of Works and Transport, carried out the evaluation
from 10th October 2013 to 19th October 2013. The Bid Evaluation Report from the
Evaluation Committee was submitted to the Project Implementation Team (PIT), a
committee of the Executive Committee for the Headquarters project. The PIT
approved the Bid Evaluation Report and will submit it to the Executive Committee
scheduled for the first week of December 2013, for approval to proceed with
negotiations with the Best Evaluated Bidder, ready for signing a construction
contract. The site mobilization for construction is expected to start at the end of
December 2013, and by January 2014, the construction scheduled to take 9 months
will have started.
(b)
The Council was informed that the status of contributions of the Partner States
towards the construction of IUCEA Headquarters as at 18 th November, 2013 was as
shown on Table VIII below.
Table VIII:
Partner State
Republic of Kenya
United Republic of Tanzania
Republic of Uganda
Republic of Rwanda
Republic of Burundi
Total
Agreed
Amount
500,000
500,000
500,000
500,000
500,000
2,500,000
Paid
500,000
500,000
500,000
1,500,000
Unpaid
500,000
500,000
1,000,000
The Council directed the Republic of Uganda and the Republic of Burundi to
expedite the process of remitting their contributions towards the construction
of IUCEA Headquarters amounting to US$ 1,000,000 (EAC/CM 28/Directive 27).
7.1.1.2 Status of the General Reserve
(a)
EAC Secretariat
The Council was informed that as at 30th September, 2013, the amount in the
General Reserve Account of the EAC Secretariat still stood at US$ 3,596,777 as
reported to the 26th Meeting of Council. Following the closure of the Financial Year
2012/2013, an amount of US$ 1,674,084 (EAC Secretariat US$ 550,709; EALA
US$ 570,456; EACJ US$ 552,919) was reported un-spent and had been deposited
into the General Reserve Account, increasing the account balance to
US$ 5,270,861.
The Council took note of the status of the General Reserves as at
18th November 2013 (EAC/CM 28/Decision 45).
Page 61
(b)
LVBC Secretariat
The Council was informed that following the Council directive for Lake Victoria Basin
Commission (LVBC) to present the status of unutilized funds since its establishment,
the Secretariat had since complied with the directive. Details of the cumulative
Reserve Funds for the last seven (7) financial years were as presented in Tables IX
(a) and (b) below
Table IX(a): Comparison of Budget and Audited Accounts
PARTICULARS:
2005/06
Budget
Asset Purchase
(Cash-flow
Statement)
Expenses
(Income &
Expenditure
Report)
297,354
Surplus/(Deficit)
371,922
673,176
3,900
2006/07
888,933
62,396
790,774
35,763
2007/08
1,046,263
2008/09
2009/10
2010/11
2011/12
Total
1,657,325
1,919,105
2,097,385
2,313,205
10,595,392
59,025
107,393
68,925
126,875
507,225
1,524,619
1,874,959
1,958,610
1,971,682
9,762,185
73,681
(63,247)
69,850
214,648
325,982
78,711
1,344,187
(376,635)
Reserves b/f.
Reserves c/f.
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
Total
371,922
407,685
31,050
104,731
41,484
111,334
111,334
371,922
35,763
(376,635)
73,681
(63,247)
69,850
214,648
214,648
371,922
407,685
31,050
104,731
41,484
111,334
325,982
325,982
The Council was further informed that like for the other institutions hosted outside
Arusha, the LVBC unused fund was deposited on LVBC account in Kisumu (KCB
Bank) as a sub-account to the main LVBC Account. The Council however observed
the need to deposit the unused fund into the EAC General Reserve Fund.
The Council
(a) took note of the amount in the LVBC Reserve Fund as at 30 th June 2013,
(EAC/CM 28/Decision 46);
(b) directed LVBC to remit unused funds to the EAC Secretariat at the end
of every audit to be deposited into the EAC Reserve Fund,
(EAC/CM 28/Directive 28);
(c) directed LVBC to close the existing sub account for the reserve funds
and transfer the funds in the sub-account to the general reserve account
operated by the EAC Secretariat (EAC/CM 28/Directive 29).
7.1.1.3 Status of Investment in Fixed Deposits
(a)
EAC Secretariat
The Council was informed that the status of investment in the EAC Secretariat Fixed
Deposits as at 18th November 2013 was as presented in Table X below -
Page 62
Table X:
Bank
Invested
EXIM Bank
EXIM Bank
TOTAL
Fixed
Deposit
Reference
EB/97/007047
EB/97/007048
Amount
Invested
(US$)
1,000,000
1,100,000
2,100,000
Interest
rate
4.80%
4.80%
27 March 2013
th
27 March 2013
Interest to be
Earned (US$)
nd
22 March 2014
nd
22 March 2014
48,000
52,800
100,800
The Council took note of the Status of Investment in Fixed Deposits as at 18th
November 2013 (EAC/CM 28/Decision 47).
(b)
In order to ensure competitiveness in investing the funds not committed, the IUCEA
Executive Committee in September 2012 approved opening of an investment
account with a safe and secure commercial bank. The Secretariat shortlisted
ECOBANK Uganda Limited and wrote to the Bank of Uganda to carry out due
diligence on ECOBANK which would guide management in implementing the
Executive Committees decision. ECOBANK Uganda was recognized as a secure
bank by the Bank of Uganda. On the basis of the recommendation by the Bank of
Uganda, IUCEA opened an investment account in ECOBANK and invested the
construction funds in a Fixed Deposit Account.
Regarding the Stanbic bank account where the investment of US$ 100,646.94
accumulated an interest of US$ 641.62 after 273 days, IUCEA retired the total
investment amounting to US$ 101,288.56 on 12th July 2013, to cater for costs for the
headquarters consultancy contract. The investment of US$ 387,408 at Ecobank
(contributions from Republic of Rwanda) matured to US$ 389.914 and was retired on
8th October 2013 to run operational activities of IUCEA. As a result, the status of
investments of IUCEA funds as at 18th November 2013 was as presented in Table XI
below Table XI:
Bank
Stanbic
Ecobank
Status of IUCEAs
18th November 2013
Currency
USD
USD
Interest
Rate
p.a.
0.25
3.75
investments
Investment
period
Amount
invested
91 days
364 days
70,683.2
500,000
Total
Stanbic
UGX
91 days
Stanbic
UGX
9.5
91 days
Stanbic
UGX
11
364 days
Total
122,035,
981
341,386,
875
769,457,
747
in
Fixed
Deposits
Expected
Replacement
interest to
date
maturity
243.51 14/10/2013
15,937.50 9/7/2013
16,181.01
6,149,900
(eqv $2,459)
5,629,683
(eqv $2,252)
71,944,299.34
(eqv $27,355)
83,723,882
(eqv $33,488)
as
at
Maturity
date
14/1/2014
8/7/2014
14/10/2013
14/1/2014
29/10/2013
28/1/2014
14/1/2013
14/1/2014
Page 63
The Council considered the status of IUCEA Headquarter Fund and noted that
(a) The 26th Meeting of the Council directed IUCEA to adopt and customize its
investment policy to conform with the EAC Investment Policy, but
unfortunately this directive had not been implemented;
(b) Management of IUCEA had invested the Headquarters Funds amounting
US$ 271,734.03 in Stanbic Bank (U) with expected returns of US$ 1,226.57.
The Council was of the view that the returns were not worth the amount
invested. This was supported by the fact the management of IUCEA had
invested with Ecobank (U) US$ 500,000 and US$ 387,408 with expected
returns of US$ 15,937.50 and US$ 2,477 respectively. Based on this fact, it
would be prudent for the Management of IUCEA to consider withdrawing the
funds from Stanbic Bank and reinvest it with another bank with higher returns;
and
(c) Article 132 (6) of the Treaty requires that the budget and accounts of the
Community be kept and maintained in United States Dollars. However, the
management of IUCEA in disregard of the requirement of the Treaty, decided
to invest Community funds amounting to UGX 1,220,801,020 in local currency
over a period of about Twelve (12) months. This puts Community funds under
risk of inflation and unpredictable exchange rates. The Council was of the
view that the funds invested in local currency with Stanbic (U) be withdrawn
after maturity and be converted into United States Dollars before considering
re-investment. Further, the Council observed that the said funds were
invested on condition of automatic renewal which was done. However, there
was no explanation as to why the interest rate had been reduced from 18.5%,
17%, 16%, and 15%, to 11%.
In this regard, IUCEA informed the Council about the plan to withdraw the funds
invested in Uganda Shillings in the Stanbic Bank, Uganda, through an approval of
the Executive Committee scheduled for the first week of December 2013. IUCEA
would invest in selected banks in the region that offer higher and better interest
rates. The IUCEA management further commented that she was in the process of
customizing its investment policy in line with the EAC Investment Policy. A Draft
Policy will be available by end of January 2014, ready for submission for approval by
the Executive Committee in March 2014.
The Council
(a)
(b)
(c)
(d)
Page 64
No.
Country
1
2
Republic of Kenya
United Republic of
Tanzania
Republic of Uganda
Total
Partner States
Obligations
600,000.00
Contributions to
st
Date (1 July 2013)
570,907.00
600,000.00
185,013.00
414,987.00
600,000.00
440, 159.98
159,840.02
1,800,000.00
1,196,079.98
603,920.02
The Council observed that there was need for detailed information on Operation
Save Nile Perch Programme. The brief should cover the objectives of the
programme, status of implementation, achievements registered and challenges
encountered and requested that this information be presented to the 28th Meeting of
the Council.
The Council
(a) re-iterated its directive to the Republic of Kenya, the Republic of Uganda
and the United Republic of Tanzania to fulfill their pledges towards
Operation Save Nile Perch Programme, (EAC/CM 28/Decision 50); and
(b) directed LVFO to commence the Operation Save the Nile Perch
programme as it awaits the remittance of the outstanding contributions
from the concerned Partner States, (EAC/CM 28/Directive 32);
(c) directed LVFO to submit a brief on the Operation Save Nile Perch
Programme to the 29th Meeting of the Council, (EAC/CM 28/Directive 33).
7.1.1.5 Requests for Budget Re-allocation
(I)
The Council was informed that the EAC Secretariat signed a three year Financing
Agreement on 4th February 2011 with the World Bank with a total budget of
US$ 16,000,000. The main objective of the first phase of the Financial Sector
Development and Regionalization Project (FSDRP) is to establish the foundation for
financial sector integration among the EAC Partner States. The Project became
Report of the 28th Meeting of the Council, November 2013
Page 65
effective on 20th June 2011 and is now in its third year of operations. The Council
was also informed that the Project had obtained approval of a budget re-allocation of
US$ 1,376,157, from its Steering and Executive Committees, which had instructed
the request be presented to the Council for approval.
(II)
The budget of US$ 4,515,150 was approved by the Council of Ministers and EALA
during the last Financial Year. During execution of planned activities the Project
Administration Team has realized the need for adjustment, in order to ensure
improved absorption and to address difficulties relating to funding of delayed
activities. These difficulties arose firstly, because some activities were not completed
during the last financial year and secondly because commencement of some
activities has been delayed due to protracted procurement negotiations.
The Project Administration Team plans to postpone some activities in the current
budget with justifications, in order to provide the additional resources for the activities
that need funding. Other activities have been dropped from the FSDRP activity
schedule on account of funding already being available from Partner States, or other
donor for the same activities.
The details of the re-allocation are presented in Tables XIII (a) and (b) below
Table XIII(a): Priority Activities Seeking Re-allocation
Activity
No.
Description
1.2.7(b)
Development and
implementation of
insurance
certification
programme
Support to PANEAC Financial
Services
Providers Council
2.4.1
2.5.1
1.2.14
Current
Budget
0.00
Additional
funds
required
45,000
New
Activity
Budget
45.000
0.00
42,000
42,000
Support to
taskforce at EAC
Secretariat to
develop EAC
Securities Legal
and Regulatory
framework
0.00
200,000
200,000
Assessment of
0.00
119,307
119307
Justification
Page 66
Activity
No.
Description
Current
Budget
Additional
funds
required
New
Activity
Budget
pension industry
from perspective
of EAC
Regionalization
2.5.2
3.2.1(a)
3.2.1(b )
3.2.1(d)
3.2.1(e )
4.3.1
4.3.2
Justification
Support to task
force at EAC
Secretariat to
develop EAC
Pension system
legal and
regulatory
framework
Assessment of
IOSCO principle
38
0.00
40,800
40,800
0.00
90,000
90,000
Assessment of
IOSCO new 8
principles
Regional
stakeholders
validation
workshop on the
assessment of
IOSCO principle
38
Regional
stakeholders
validation
workshop on
assessment of
IOSCO new 8
principles
Support to task
force for
demutualization of
Uganda stock
exchange
Study on
demutualization of
Uganda stock
exchange
0.00
150,000
150,000
0.00
36,000
36,000
-do-
0.00
36,000
36,000
-do-
0.00
15,000
15,000
0.00
116,100
116,100
Page 67
Activity
No.
4.3.7(a)
4.3.9
Description
TA for
establishing
capital market
authority in
Burundi to enable
integration with
regional markets
Technical
assistance for
automation of
Rwanda stock
exchange
Current
Budget
Additional
funds
required
New
Activity
Budget
40,900
34,100
75,000
0.00
99,750
99,750
4.1.5
Hiring a
consultant to
support Capital
Market
Infrastructure
TWG
0.00
148,000
148,000
4.2.1
Support to Capital
Markets
Infrastructure
TWG meetings
and Country
Consultation
workshops
Pension Advisor
0.00
110,000
110,000
0.00
44,100
44,100
EAC Resident
Advisor-Securities
90,000
50,000
140,000
6.2.1
6.2.11
1,376,157
Justification
1,376,157
Page 68
1.1.7 (c)
1.1.8
1.2.6
2.6.6
3.1.1
3.1.2
3.2.3
3.2.5
3.2.6
3.2.7
Description
Dissemination of financial
literacy in partner states
among business
associations, general
public, universities and
donors
Media strategy for
regionalization awareness
campaign in the EAC
Partner States
Implementation of
securities certification
program
Study on assessment of
provision of Motor third
party liability insurance
from the perspective of
EAC regionalization
Provide support to task
force at the EAC
Secretariat for compliance
with Basel Core Principles
Assessment of compliance
with Basel Core Principles
Implementation of multiyear action plans to comply
with IOSCO Principles (KY,
TZ, UG, RW, BU)
Preparation for signing of
MOU for mutual recognition
Preparation for signing the
IOSCO MOU on
cooperation and exchange
of information (UG)
Preparation for signing the
IOSCO MOU on
cooperation and exchange
of information (RW)
Development of legal and
regulatory framework for
capital market in Burundi
4.3.7 (b)
6.1.1
Amount
Justification
Postponed awaiting the results of the study
on the financial education under 1.1.6
267,500
Postponed awaiting the results of the study
on the financial education under 1.1.6
217,500
91,800
70,300
This activity has been dropped as Partner
States are receiving support from the IMF
for this activity
61,600
144,500
237,500
-do51,300
-do-
50,000
Postponed until the Republic of Rwanda
confirms the date of activity
50,000
This activity will be delayed until institutional
review of Burundi (4.3.7(a))is completed
97,600
Staff salaries
TOTAL
36,557
1,376,157
The Council
(a) approved
the
re-allocation
request
of
US$ 1,376,157
(EAC/CM 28/Decision 51); and
(b) directed the Secretariat that in future such requests for reallocation and
re-prioritization of activities of the FSDRP I Project be presented to the
Report of the 28th Meeting of the Council, November 2013
Page 69
The Council was informed that the EAC Regional Project on Aflatoxin Control and
Improved Nutrition is part of the overall implementation of the EAC Food Security
Action Plan (2011-2015) as approved by the 9th Extra-Ordinary Summit of the Heads
of State held in Dar es Salaam, Tanzania in April 2011.
The Council was also informed that the 3rd Amendment of the Assistance Agreement
for Comprehensive Regional Development (AA-CRD) between the United States of
America and the East African Community was signed on 29th September 2011and
Implementation Letter No. 8 that assigned on 11th January 2011 providing EAC an
amount of US$ 730,000 to implement the Regional Project on Aflatoxins Control
and Improved Nutrition. Subsequently, the 24th Ordinary Meeting of the EAC
Council of Ministers that was held from 21st - 26th November 2011 in Bujumbura,
Burundi approved the first work plan and budget for the implementation of the said
EAC-USAID Regional Project on Aflatoxin Control and Improved Nutrition (Ref:
EAC/CM 24/Decision 59 of 27th November 2011).
(IV)
Justification for the Budget Reallocation for the EAC Aflatoxin Project
The Council was further informed that the effects and impact of Aflatoxin cut across
the areas of agriculture, human and animal health, industry and trade thereby
demanding interventions and mitigation measures that take a holistic and integrated
approach. However, the EAC project on Aflatoxin had been implemented in a
piecemeal manner by the Health, Agriculture and Trade departments without proper
coordination mechanisms and synergy. In this regard, the 27 th Council of Ministers
held on 31st August 2013 (EAC/CM 27/ Decision 20 Directive 21) adopted the
decision of the Sectoral Council on Agriculture and Food Security to establish a
Multi-Sectoral Advisory and Project Steering Committee Composed of experts from
Agriculture, Health, Trade and Industry sectors of Aflatoxin at National and Regional
levels.
The Council was informed that the EAC teams implementing the Project (Agriculture,
Health and Trade) and USAID/EA had agreed on the reorganization of the project
implementation approach and budget re-allocation in order to foster synergy and
complementarity in line with the above Decision of the Council of Ministers. In the
new implementation arrangement, a consultancy firm would be hired by USAID/EA
to develop the Policy and the implementation framework. Details of the proposed reallocation are presented in Tables XIVA and XIVB below -
Page 70
Original
Budget (US$)
63,840
Amount
Balance
reallocated
63,840
0
52,050
52,050
53,900
53,900
59,450
59,450
74,700
74,700
50,200
50,200
32,750
32,750
132,450
70,260
62,190
519,340
457,150
62,190
Original
amount
0
Amount
reallocated
33,200
New
Budget
33,200
52,650
52,650
42,950
42,950
53,400
53,400
42,950
42,950
42,950
42,950
Page 71
42,950
42,950
27,150
0
23,050
16,700
50,200
16,700
69,850
69,850
36,500
36,500
27,150
457,150
484,300
The MTEF for reallocation under Aflatoxin is attached hereto as Annex XXV.
(V)
The Council was informed that the Population Health-Environment (PHE) Project
was an EAC Project funded by USAID. The overall objective of the Project is to
increase the Communitys capacity to improve the health status and food security of
EAC citizens and reduce poverty using practices that protect the environment and
are sustainable and efficient.
(i) Specific Objectives include (a) improving the health status of local populations in both urban and rural
communities;
(b) increasing household income and food security;
(c) improving natural resource management;
(d) increasing use of modern contraceptives;
(e) reducing poverty.
(ii) Intervention Areas and Approaches for EAC Regional Integrated PHE
Project
The major areas of intervention are
(a) Food security with focus on food and feed safety, nutrition and dietetics
through the implementation of the EAC Food Security Action Plan (20112016);
(b) Climate Change with focus on human health (such as diseases, extreme
temperatures) and biodiversity (adaptability of species, ecosystems)
through the implementation of the East African Community Climate
Change Master Plan (2011-2031);
(c) Disaster Mitigation with focus on creating and implementing EAC regional
policies related to disaster mitigation through integrated approaches
involving natural resource management, disaster mitigation, capacity
building, and infectious disease control frameworks and laws;
(d) Public Health and Sanitation with focus integrated cross-border diseases
prevention and control through One Health approach and Ecosystem
Interventions, Reproductive, Maternal, Perinatal, Child and Adolescent
Health and Family Planning and Nutrition & HIV/AIDS through
simultaneous delivery of HIV prevention education, condom access, and
care and treatment of persons with HIV/AIDS among other interventions;
and
Page 72
Original
Budget
(USD)
92,600
Reallocated Balance
amount
92,600
15,000
7,400
7,600
107,600
100,000
7,600
Original
Budget
(US$)
0
Reallocated
New
amount
Budget
36,180
36,180
67,400
67,400
100,000
100,000
Page 73
The MTEF for reallocation under PHE Project is attached hereto as Annex XXVI.
The Council approved re-allocation of funds amounting to (a) US$ 457,150 for the East African Community Regional Aflatoxin Project
(USAID Funded) (EAC/CM 28/Decision 52); and
(b) US$ 100,000 for the East African Community Aflatoxin Project on
Population,
Health
and
Environment
(USAID
Funded)
(EAC/CM 28/Decision 53);
7.1.1.6 Requests for Supplementary Budget for the EAC Secretariat
(i)
The Council was informed that the support of the United States of America (USG) to
EAC cuts across six EAC sectors, namely; Customs and Trade, Energy, Agriculture,
Environment, Health and EAC Institutions. The current agreement supports the EAC
in the implementation of medium term Development Strategy (2011-2016) as well as
realization of the mission and vision statements of deepening political and economic
integration while improving the well-being of citizens. The Sixth Amendment of the
Comprehensive Agreement between EAC and United States of America was signed
on 12th November 2013 providing EAC a total amount of US$ 2,206,000 as follows:
EAC Secretariat US$ 1,470,000 and LVBC US$ 772,387. The MoU is attached
hereto as Annex XXVII.
(ii)
The Council was also informed that USAID/EA provided USD 540,000 under
Institution Strengthening to cater for salaries and allowance for USAID supported
staff as well as administrative costs for the office of the Liaison. Details of that
supplementary budget are presented in Table XVIA below -
Page 74
Amount
(US$)
54,361
51,431
25,634
25,634
Salaries and allowances for Senior Project Accountant (P2) and Accounts
Assistant (G5)
57,992
22,582
15,600
Total
8,354
261,588
The MTEF for the supplementary budget for salaries for USAID supported staff is
attached hereto as Annex XXVIII.
(iii)
The Council was informed that the US Government financial year runs from October
to September while EAC financial year runs from July to June every year. The
unsynchronized financial years between EAC and US Government (USG) poses
difficulties for the EAC to comply with the requirements of the EAC Medium Term
expenditures Framework (MTEF). The most significant consideration for the
supplementary request from USG side is when the USG funds became available for
obligation (November 2013) and when EAC teams are able to access the funds (July
2014). We are therefore requesting the supplementary Budget to be able to spend
from January 2014. Details of the supplementary budget for USAID funded activities
are presented in Table 8B below
Table XVIB: Supplementary Budget requested for USAID funded activities at
EAC Secretariat
EAC Sector
Activity description
Agriculture
Trade
Budget
(USD)
74,800
58,900
133,700
72,250
34,750
Page 75
Customs
100,500
62,300
7,400
21,900
22,000
17,000
341,150
56,400
63,900
64,200
77,500
96,675
47,600
406,325
881,175
The MTEF for supplementary budget for approved activities under the sixth
amendment of the assistance agreement between EAC and USG to be implemented
by EAC Secretariat is attached hereto as Annex XXIX.
The Council
(a) adopted a supplementary budget (from USAID Support) amounting to
US$ 1,142,763 to cater for staff salaries and allowances, and the
activities funded by USAID at EAC Secretariat (EAC/CM 28/Decision 54);
and
(b) referred the same to the East African Legislative Assembly for debate
and approval (EAC/CM 28/Decision 55).
Page 76
Page 77
(b) referred the same to the East African Legislative Assembly for debate
and approval (EAC/CM 28/Decision 57).
7.1.1.8 EAC Audit and Risk Committee
At its 6th Meeting held in Nairobi, Kenya from 14th - 18th October, 2013, the EAC
Audit and Risk Committee observed that it was allocated US$ 112,750 in the budget
for the Financial Year 2013/14 to fund four meetings as provided for in the EAC Audit
and Risk Committee Charter approved by 20th Meeting of the Council of Ministers
held in March 2010.
The Council observed that there were a number of activities that needed to be
undertaken in order for it to fulfill its mandate. These activities, among others, include
(a) Interaction with the key stakeholders, including Members of Audit
Commission, Members of the Committee on Accounts of East African
Legislative Assembly and Heads of EAC Organs and Institutions.
(b) Induction and Capacity Building of the Members the Audit and Risk
Committee; and
(c) Oversight Activities on EAC Projects and Programmes.
Noting that the amount allocated was not sufficient to enable the Committee fulfill its
mandate, the Council recommended additional resources be allocated to fund
additional activities for the period January to June 2014. Consequently, the
Committee is seeking a supplementary budget amounting to US$ 114, 050 to
finance the following activities as presented in Table 9 below:
Table XVII: Proposed activities for which the Supplementary Budget is being
sought
S/N
Activity Description
1.
2.
3.
4.
5.
Amount
USD
in
76,930
24,520
9,900
600
2,100
114,050
The Council observed that the activities for which the funds were being sought were
not critical and recommended that they should be incorporated in the next financial
years budget.
The Council
(a) took note of the above request from the Audit and Risk Committee
(EAC/CM 28/Decision 58); and
Page 78
(b) directed Secretariat to include the proposed activities into the 2014/15
Annual Operational Plan and the requested amount of US$ 114,050 in
the Financial year 2014/15 budget estimates (EAC/CM 28/Directive 35).
7.1.1.9 EAC Railways Sector Enhancement
additional funds (Budget for 2013/2014)
Programme:
Request
for
The Council was informed that in 2009, the EAC, using own resources and
Partnership Fund, prepared a 10 year EAC Railways Master Plan, intended to guide
the development of the sector regionally and to harmonize operations of the sector in
order to effectively reduce the overall cost of transport in East Africa. The Master
Plan made several recommendations, key among them being the conducting of prefeasibility studies along the proposed new railway lines and developing legal
frameworks for harmonization of railway policies and operations.
The Secretariat subsequently approached the African Development Bank through its
Infrastructure Project Preparation Facility (IPPF) to finance a consultancy to carry out
the Study. The AfDB agreed to this request and signed a Grant Agreement with the
EAC on 21st December, 2012 for an amount of US$ 1, 232,000.00. The EAC
immediately embarked on the procurement process for the consultancy and the
exercise is currently nearing completion. A No Objection is being awaited from the
Bank to allow EAC to sign a consultancy agreement with the firm selected after a
competitive process.
The Grant Agreement attached hereto as Annex XXXII was signed after the closure
of the budget process for the Financial Year 2013/2014. Therefore, counterpart
funding required to augment the grant from AfDB were not factored into the
Transport and Works budget for that period.
Since the lowest evaluated firm offered to conduct the study for a sum of
US$ 1,500,000 the Secretariat requires additional funds of US$ 268,000, with
detailed MTEF attached hereto as Annex XXXIII for the payment of consultancy fees
and reimbursable items as outlined in Table 10 below.
Table XVIII: Details of the funds required
Item No
Description
Activities to be funded
Consultancy fees
Stakeholder workshops (air tickets,
per diems and conferencing)
Amount
(US$)
268,000.00
The Council was informed that this activity was not included in the FY2013/14
budget as during the budgeting period, the contract was not yet signed resulting in its
removal from the budget estimates for the financial year 2013/14. It was proposed
that funds be sourced from the General Reserve Account rather than requesting
Partner States to remit additional contributions.
Page 79
The Council considered the matter and noted that according to Article 32 of EAC
Financial Rules and Regulations, it was not in order to approve the supplementary
budget as requested. The Council noted the need for the Secretariat re-allocates
internally to meet the required funds amounting to US$ 268,000.
The Council approved internal re-allocation of US$ 268,000 as counterpart
funding for the EAC Railways Sector Enhancement Programme, in line with the
EAC
Railway
Master
Plan,
within
the
FY2013/14
budget
(EAC/CM 28/Decision 59).
7.1.1.10 EU Funded East and Southern Africa-Indian Ocean (ESA-IO) Maritime
Security Project
The Council was informed that following the adoption of the East and Southern
Africa (ESA)-IO (Indian Ocean) Maritime Security Strategy and Action Plan by
Regional Ministers at a Ministerial Meeting held in Mauritius in October 2010, the EU
offered to facilitate seed funding to support the implementation of then Strategy and
Action plan in light of the then serious problem related to Somali Piracy in the Indian
Ocean. A technical team drawn from all ESA-IO RECS thereafter commenced on a
project development exercise which culminated into the signing of a financing
agreement for an ESA-IO Maritime Security Project with an overall EU commitment
of Euros 37.5 million.
The overall objective of the project is to enhance maritime security in the ESA-IO
region hence contribute to global security and create a favorable environment for the
development of the ESA-IO Region and beyond. The specific objective of the project
is to strengthen the capacity of the ESA-IO region in the implementation of the
Regional Strategy and Action Plan against Piracy and for Maritime Security.
The funding was distributed among the various result areas as follows (a) Result Area 1-IGAD-implementation of the Somali Inland Action Plan
(Euros 7,959,000);
(b) Result Area 2-EAC-develope/Strengthen National/Regional legal, legislative
and infrastructural capability for Arrest, Transfer, Detention and Prosecution of
Pirates (Euros 11,603,966 total with Euros 5 million for UNODC to support
ongoing trials and the remainder Euros 6,603,500 for EAC led interventions);
(c) Result Area 3-COMESA-strengthen Regional capacity to disrupt the financial
networks of pirate leaders and their financiers while also addressing structural
vulnerability factors and minimize the economic impact of piracy
(Euros 5,451,400);
(d) Result Area 4-IOC-enhance national and regional capacity for maritime tasks
and support functions (Euros 9,540,400); and
(e) Result Area 5-IOC-improve regional coordination and information exchange
(Euros 1,306,000).
Commitments with respect to these interventions must be concluded not later than
12th June 2016.The project life covers five years.
Page 80
The EAC Component will focus on the following interventions (a) Continuation of existing support to trials of suspected pirates in countries of
the region(UNODC);
(b) Agreement on a harmonized legal framework for maritime law enforcement
with the possibility to allow for national adjustment of laws and regulations;
(c) Develop training and mentoring program as well as provision for equipment
for police, prosecutors, and courts staff on a variety of maritime law
enforcement angles, including human resource development(includes support
to the Kampala-based the Regional Forensic Referral Centre)
(EAC/INTERPOL);
(d) Develop training and mentoring for prison staff (including attention for human
rights) and develop staff living conditions and human resources;
(e) Support for the implementation Prisons Reform Programs;
(f) Project Management; and
(g) Support to training of prosecutors and judiciary.
Intervention (a) will be undertaken by the UN Office for Drugs and Crime (UNODC)
while the remainder will be implemented though program estimates concluded by the
EAC and the EU Delegation in Dar-es Salaam. In view of the fact that the EAC,
IGAD and IOC have not satisfied the EDF Four Pillar Assessment, these regional
organizations will be subject to Direct Decentralized Management which implies
implementing the Project guided by the EDF 10 procedures and Regulations.
The Council was also informed that implementation of the EAC Component was set
to commence on 1st January 2014 upon approval of supplementary estimates
covering January-June 2014. The envisaged activities during this phase include (a) Development of a Strategic Plan for the Regional Forensic Referral Centre
US$ 146,200;
(b) Foundation interventions for Prisons Reforms US$ 150,950 (Euros 111,440);
(c) Validation of training curriculum for Prosecutors and Judicial Officers
US$ 77,460;
(d) Recruitment and remuneration of Project Staff US$ 33,606;
(e) Procurement of Project equipment and vehicle US$ 70,000;
(f) Training and project running costs US$ 54,200;
(g) Studies and consultancies with INTERPOL US$ 56,000.
The Council considered the request and recommended that a supplementary budget
amounting to US$ 506,497 be adopted by the Council.
The Council
(a) adopted a supplementary budget for EU Funded East and Southern
Africa-Indian Ocean (ESA-IO) Maritime Security Project amounting to
US$ 506,497
to
cover
project
foundation
activities
costs
(EAC/CM 28/Decision 60); and
(b) referred the same to the Legislative Assembly for debate and
approval(EAC/CM 28/Decision 61).
Page 81
(LVBC)
Partitioning
and
The LVBC became fully operational in April 2006 and officially relocated to its
designated headquarters in Kisumu, Kenya, in January 2007.
The Council at its 26th Meeting was informed of security challenges the Commission
is facing due security problems generally prevailing in Kenya with terrorists attacks.
The Commission being a regional body is composed of staff from all EAC Partner
States, of which three countries are involved in AU Peacekeeping Mission in
Somalia, is at a high risk of being attacked by Al Shabaab terrorists.
Furthermore, the insecurity in Kisumu has increased where of recently about eight
people were shot dead by unidentified criminals. The Commission has already
experienced cases of insecurity where two Officers were shot at by criminals and
demonstrators violating the Headquarters Seat. The current location of the LVBC
Offices does not provide good security environment which would allow the
Government of Kenya to provide appropriate security services to the Commission as
requested by the 26th Council of Ministers.
To address the location challenges, the Government of Kenya offered office space to
the Commission at Prosperity House (Former Nyanza Provincial Headquarters
Building) via letter attached as Annex XXXIV. However, after visiting the allocated
Offices on the 12th and 13th floors, it was realized that moving to the new Offices will
necessitate more preparatory works than it was earlier envisaged, among other
priorities will be procurement of a lift and office partitioning and remodeling. The
available Budget for partitioning and remodeling is US$ 80,000 while the exercise is
estimated to cost US$ 220,000. The lift was not budgeted for in the current financial
year and is estimated to cost US$ 69,229.27.
The LVBC presented a request for a Budget of USD 215,000 to immediately prepare
for relocation. The relocation would allow the Commission to get sufficient space for
its offices and fully operationalize the LVBC Resource Center and Library whose
equipment were scattered for lack of adequate space. It was noted that the
Commission would be able to save funds amounting to US$ 60,000 per year
currently being spent on office rent.
The Council considered the matter and recommended that priority be given to the
partitioning and remodeling, while the funds required for installing a lift should be
budgeted for during the next financial year 2014/15.
The Council approved internal reallocation of US$ 145,000 from within the
LVBC budget for the FY2013/14, to procure the lift and part of partitioning and
remodeling of new offices and include into the budget for FY2014/15 the
estimated balance of US$ 69,229.27 to complete partitioning and remodeling of
the new offices (EAC/CM 28/Decision 62).
Page 82
The Council expressed concern on the composition of the Committee as provided for
in the Governance Code approved by Council (EAC/CM/20/Decision 87) and
observed that having members of the Audit and Risk Committee and representatives
of Senior Management of the EAC Organs and Institutions as members of the AntiFraud and AntiCorruption Committee would constitute conflict of interest.
Consequently, the Council noted the need for the composition of the Committee be
reviewed in line with the principle of separation of powers and in the interest of
building checks and balances in the operations of the Community. The Council
considered the proposal to establish the EAC Anti-Fraud and Anti-Corruption
Committee and noted the need for the Secretariat to present the matter to the EAC
Anti-Corruption bodies and Sectoral Council for Ministers Responsible for EAC
Affairs and Planning for technical input before its establishment.
The Council directed the Secretariat to present the proposal for the
establishment of the Anti-Fraud and Anti-Corruption Committee matter to the
EAC Anti-Corruption bodies and Sectoral Council for Ministers Responsible
for EAC Affairs and Planning for technical input (EAC/CM 28/Directive 36).
7.1.1.13 Operationalization of the EAC Kiswahili Commission
The Council was informed that at its 1st Extra-Ordinary Meeting held in November
2012 in Kigali, Rwanda, the Sectoral Council on Education, Culture and Sports
directed the EAC Secretariat to provide for recruitment of staff to fill in the initial
Page 83
approved twenty (20) positions in the 2013/2014 EAC Budget. However, due to the
conditionalities which prevailed, it was not possible to accommodate this activity
during the budgeting process for the Financial Year 2013/2014. The Council was
further informed that negotiations for the Headquarters Agreement between the EAC
Secretariat and the United Republic of Tanzania were on-going and the
operationalization of the Commission was due for the Financial Year 2014/2015.
Budget Estimates for the recruitment of the initial twenty (20) staff had been included
in budget estimates for the Financial Year 2014/2015.
An extract from the Report of the 1st Extra-Ordinary Meeting of the Sectoral Council
on Education, Culture and Sports containing its directive to the Secretariat and
detailed budget estimates to operationalize the same by recruiting the initial twenty
(20) staff are attached hereto as Annex XXXV(a) and (b) respectively.
The Council (a) adopted the decisions of the 1st Extra-Ordinary Meeting of the Sectoral
Council on Education, Science and Technology, Culture and Sports;
with financial implication amounting to US$ 2,009,041 to facilitate the
operationalization
of
the
EAC
Kiswahili
Commission
(EAC/CM 28/Decision 63); and
(b) directed that the activities of the EAC Kiswahili Commission be reflected
in the budget estimates for the Financial Year 2014/2015
(EAC/CM 28/Directive 37).
7.1.1.14 East African Science and Technology Commission (EASTECO)
The Council was informed that at its 1st Extra-Ordinary Meeting held in November
2012 in Kigali, Rwanda, the Sectoral Council on Education, Culture and Sports
directed the EAC Secretariat to provide for recruitment of staff to fill in the approved
twenty two (22) positions to kick start the operationalization of the EASTECO in the
2013/2014 EAC Budget. However, due to the conditionalities which prevailed, it was
not possible to accommodate this activity during the budgeting process for the
Financial Year 2013/2014. The Council was further informed that negotiations for the
Headquarters Agreement between the EAC Secretariat and the Republic of Rwanda
were at an advanced stage and the operationalization of the Commission was due
for the Financial Year 2014/2015. Budget Estimates for the recruitment of the initial
twenty (22) staff had been included the Estimates for the Financial Year 2014/2015.
An extract from the Report of the 1st Extra-Ordinary Meeting of the Sectoral Council
on Education, Culture and Sports containing its directive to the Secretariat and
detailed budget estimates to operationalize the same by recruiting the initial twenty
(22) staff are attached hereto as Annex XXXVI(a) and (b).
The Council (a) adopted the decisions of the 1st Extra-Ordinary Meeting of the Sectoral
Council on Education, Science and Technology, Culture and Sports;
with financial implication amounting to US$ 1,894,400 to facilitate the
Page 84
The Council recalled that at its 16th Meeting held on 13th September 2008, it
appointed Mr. Robert Achieng as Senior Engineer/Planner Communications (P2)
with effect from 1st October 2008. Mr. Achieng reported for duty on 1st December
2008 and his current contract will expire on 30 th November 2013. In addition, the
Council at its 18th Extra Ordinary Meeting held on 21st October 2008, appointed
Ms. Barinda Elizabeth as Senior Clerk Assistant (P2) tenable at the East African
Legislative Assembly. Accordingly, her five year contract commenced on
1st November, 2008 for a five year tenure which comes to an end on 31 st October,
2013.The two officers have indicated a desire to renew their contracts for a further
five years.
A performance evaluation has been undertaken and their performance has met the
requirements for renewal as stipulated in the Staff Rules and Regulations. They have
served the Community with diligence and have been graded as hard working,
disciplined, professional, and their commitment and contribution to the Community,
commendable. In Line with the provisions of the Staff Rules and Regulations, it is
recommended that their employment contracts be renewed for a final five - year term
in line with the provisions of Regulation 22 (1) (c) and subject to the provisions of
Regulation 102.
The Council approved the renewal of employment contracts for the above
professional staff in line with the provisions of Regulations 22 (1) (c) and 102
of the Staff Rules and Regulations with effect from the due dates
(EAC/CM 28/Decision 65).
7.2.1.2
The 26th Extra-ordinary Meeting of the Council of Ministers held in April 2013
considered the report of the Interview Panel in regard to the recruitment process for
nineteen (19) Professional Staff positions. The Council then directed the Secretariat
to convene a meeting of Heads of Public Service Commissions to audit the entire
recruitment process in the EAC and make appropriate recommendations to the
27th Meeting of the Council (EAC/CM/EX/26/Directive 22). Consequently, Heads of
Public Service Commissions held a meeting on 5th - 9th August, 2013. The Council
considered the Report of the Audit attached hereto as Annex XXXVII.
Page 85
The Council agreed to distribute the positions as follows (a) Principal Legal Officer (P3), Mr. Michel Ndayikengurukiye, Republic of
Burundi (77%);
(b) Principal Human Resources Officer (P3), Ms. Ruth Simba, The United
Republic of Tanzania (89.57%);
(c) Senior Documentation Officer (P2), Ms. Sylvia Namirembe, Republic of
Uganda (81.71%);
(d) Senior Librarian, (P2), Mr. Hubert Shija, The United Republic of Tanzania
(89.9%);
(e) Senior Transport Economist (P2), Mr. Eric Ntagengerwa, Republic of Rwanda
(72.97%);
(f) Senior Procurement Officer (P2), Ms. Ponventra Ajimbi Shitsia, Republic of
Kenya (79.14%); and
(g) Security Officer (P1), Ms. Miria Atuhe, Republic of Uganda, (82.29%).
It was noted that for the position of Procurement Officer (P2) Mr. Ochieng Tefron
Brian, from the Republic of Uganda was ranked the best candidate with a score of
80.86%, the Council recommends to Council to consider, keeping in line with the
principal of Quota System to minimize dominance of one Partner States candidate
serving in the same department/unit, and the principal of gender balance, to appoint
Ms. Ponventra Ajimbi Shitsia, from the Republic of Kenya who ranked second best
with a score of 79.14%, for this position.
However, while the Republic of Burundi agreed with the rest of Partner States on the
recommendation to the appointment of candidates (b) to (f), she was of the view that
taking into consideration of the quota system principle mentioned above; the Legal
Department already has a citizen from the Republic of Rwanda in the position of P4,
therefore, allowing a Rwandan citizen to occupy the P3 position while the Republic of
Burundi has none in the said department would amount to the breaching of the
principle as far as the Burundian candidate is concerned and yet he scored above
the cut off line with a score of 77%. On top of that the Republic of Burundi occupies
the first priority in terms of balance of point amounting to199.2.
Therefore, the Republic of Burundi was of the view that the Position of Principal
Legal Officer (P3) be given to a Burundian Candidate, namely Mr. Michel
Ndayikengurukiye, in order to give an opportunity to a citizen from the Republic of
Burundi to be recruited in this department.
The Council observed that the Report of the Heads of Public Service Commissions
was supposed to be submitted to the Council for consideration and not to the
Finance and Administration Committee. Furthermore, at its 26th Meeting, the Council
had directed the Heads of Public Service Commissions to audit the entire
recruitment process in the EAC. However, the Heads of the Public Service
Commission only restricted themselves to the 19 positions. There was therefore a
need for the Council to reiterate its previous decision for the Commission to carry out
an audit of the entire recruitment process in the EAC. The Council further noted that
in allocating positions, the Secretariat did not follow the Quota System.
Page 86
The Council noted the need for recruitments at the EAC to be outsourced to an independent
Consultancy firm so as to avoid the enduring challenges.
The Council
(a) appointed candidates listed below with effect from 29th November 2013
(EAC/CM 28/Decision 66); (i) Mr. Michel Ndayikengurukiye, Republic of Burundi - Principal Legal Officer
(P3),
(ii) Ms. Ruth Simba, The United Republic of Tanzania - Principal Human
Resources Officer (P3),
(iii) Ms. Sylvia Namirembe, Republic of Uganda - Senior Documentation Officer
(P2),
(iv) Mr. Hubert Shija, The United Republic of Tanzania - Senior Librarian, (P2),
(v) Mr. Eric Ntagengerwa, Republic of Rwanda - Senior Transport Economist (P2),
(vi) Ms. Ponventra Ajimbi Shitsia, Republic of Kenya - Senior Procurement Officer
(P2); and
(vii) Ms. Miria Atuhe, Republic of Uganda - Security Officer (P1).
(b) directed the Secretariat to outsource the process of advertising, shortlisting and
preliminary interviews by a recruitment consultancy firm who will propose the three
best qualified candidates per Partner State where possible, to the Secretary General
for final interview in line with the EAC Staff Rules and Regulations
(EAC/CM 28/Decision 39).
7.2.1.3 Candidates Shortlisted for the Four (4) Vacant Positions tenable at the East
African Legislative Assembly (EALA)
The Council was informed that the following vacant positions namely; Principal Clerk Assistant,
Senior Clerk Assistant, Clerk Assistant and Sergeant-At-Arms were among the positions that
were interviewed in Nairobi in October 2012. However, due to the non-participation of the
Republic of Rwanda, the interview process was stayed. The report of the stayed interview
process was submitted to the 26th Meeting of Council of Ministers and attached as
Annex XXXVIII.
The Council was also informed that following the 26th Meeting of the Council of Ministers held in
Nairobi on 26th November 2012 where the EAC Organs and Institutions were directed to proceed
with the recruitment of Professional Staff, based on the Quota System (EAC/CM 26/Directive 44).
Interviews were conducted in Partner States Capitals from 2nd-18th April 2013. Due to the heavy
schedule of EALA including the planned Plenary Sessions in Kigali, Rwanda scheduled from
15th-25th April 2013 and on the request of Clerk, the interviews for the EALA positions namely
Principal Clerk Assistant, Senior Clerk Assistant, Clerk Assistant, Sergeant at Arms were stayed.
The Council noted that the applicants from the Republic of Kenya were interviewed in October
2012 in Nairobi. In view of the time lapse between the Nairobi session of interviews and now, it is
recommended that the process of recruitment for these positions should start afresh.
The Council directed the Secretariat to re-advertise the positions under EALA namely
Principal Clerk Assistant, Senior Clerk Assistant, Clerk Assistant, and Sergeant at Arms,
(EAC/CM 28/Directive 39).
7.2.1.4
Acting Appointments
In accordance with the provisions of Regulation 45 of the EAC Staff Rules and Regulations, staff
may be appointed to act in a position for a period not exceeding six months or until the post is
substantively filled; whichever comes earlier provided he or she has the necessary qualifications
for appointment to such a post.
Page 87
The Secretariat presented the following Professional Staff for consideration and
approval for acting appointment in line with the provisions above
7.2.1.4.1 Position of Director, Finance Mr. Juvenal Ndimurirwo, Principal
Accountant
Former, Director of Finance, Mrs. Ghaniya Kadu retired in December 2012.
However, the position has since not been filled as the recruitment process is yet to
be finalised. Due to the central role played by this position in managing the funds of
the Community, it is recommended that the position be filled in acting capacity by
Mr. Juvenal Ndimurirwo, pending finalisation of the recruitment process with effect
from 1st October 2013.
7.2.1.4.2 Position of Director, Productive Sectors Mr. Moses Marwa, Principal
Agricultural Economist
Following the retirement of Dr. Nyamajeje Weggoro, former Director of Productive
Sectors at the end of July 2013, Mr. Moses Marwa, Principal Agricultural Economist
has been overseeing responsibilities for the position of Director of Productive
Sectors. Mr. Marwa is being recommended to Act in this position with effect from
1st October 2013.
7.2.1.4.3 Position of Principal Internal Auditor Mr. Evariste Habimana,
Internal Auditor
Mr. Charles Mukiri, Principal Internal Auditor retired on 30th October 2013.
Considering the critical role played by this position, Mr. Evariste Habimana is being
recommended to act in the position of Principal Internal Auditor with effect from
1st November 2013.
7.2.1.4.4 Position of Court Administrator Mr. Stanley Mono, Accountant
EACJ
On 22nd August, 2011, Ms. Stella N. Mutuku, Court Administrator was appointed as
Judge of the High Court of Kenya, upon which she resigned as the Court
Administrator effective from 13th October 2011. The recruitment for this EACJ
position is yet to be finalised. Mr. Stanley Mono is being recommended to act in the
position of Court Administrator, EACJ with effect from 1st October 2013.
The Council noted the need for the Secretariat to provide job descriptions for the
positions to be acted upon and qualifications of the members of staff proposed for
acting, to be able to make an informed decision.
The Council approved the above Acting Appointments for a period of six (6)
months with effect from 1st December, 2013 (EAC/CM 28/Decision 67).
7.2.1.5
The Council recalled the decision of the 17th Meeting of the Council held on
27th February 2009 that appointed Dr. Stanley S. Sonoiya as Principal Health Officer
Page 88
(P3) with effect from 1st March, 2009 (EAC/CM/17 Decision48). Dr. Sonoiya has
served his first five-year contract term satisfactorily and his current contract is due to
expire on 28th February, 2014. The Council noted that a performance evaluation had
been undertaken and his performance met the requirements for renewal as
stipulated in the EAC Staff Rules and Regulations. The Council also noted that he
had exhibited professionalism and had served the Community with diligence and
commitment. Based on the provisions of Regulation 22 (1), sub-regulation (c) of the
EAC Staff Rules and Regulations, which states that all Professional staff shall be
appointed on a five-year contract, which may, subject to satisfactory performance, be
renewed once by the Council, and the provisions of Regulation 10, the Council
recommended that his employment contract be renewed for a final term of five years
with effect from 1st March, 2014.
The Council renewed the contract of Dr. Stanley S. Sonoiya as Principal Health
Officer (P3) for a final contract term of five years with effect from 1 st March,
2014 (EAC/CM 28/Decision 68).
7.2.1.6
Extension of Contract for the Principal HIV and AIDS Officer (P3)
The Council recalled that at its 21st Meeting held on 1st December 2010, the Council
appointed Dr. Michael J. Katende as Principal HIV and AIDS Officer (P3). The
position was tenable under the EAC HIV and AIDS Programme for a period of two
years and nine months with the support of the Swedish Government (Swedish
International Development Agency) and Irish Government (Irish AID) respectively.
The officer reported for duty on 1st March 2011.
The Council noted that the initial funding from SIDA and Irish AID for the EAC HIV
and AIDS expired on 14th October 2013. However, EAC had negotiated for an
extension for a period of one year and nine months with effect from 15 th October
2013 to facilitate completion of the implementation of the activities under the realigned EAC HIV and AIDS Multi-sectoral Strategic Plan 2012-2014 as per the
Funding Agreement attached hereto as Annex XXXIX which amended the original
funding agreement between the EAC and the Government of Sweden.
Based on the extension and the performance appraisal, the Council recommended
that the employment contract of Dr. Katende as Principal HIV and AIDS Officer (P3)
be extended for a period of one year and nine months with effect from 1st January
2014. The extension is to facilitate implementation of the Re-aligned EAC HIV and
AIDS Multi-sectoral Strategic Plan 2012 - 2014.
The Council deferred extension of the employment contract of Dr. Michael J.
Katende as Principal HIV and AIDS Officer (P3) pending availability of funds
(EAC/CM 28/Decision 69).
7.2.1.7
Principal
The Council noted that at its 7th Ordinary Meeting held on 30th January 2004, the
Council of Ministers appointed Mr. Abdul Katabaro (The United Republic of
Tanzania) as Administrative Officer (P2), an appointment which he took up on
Page 89
1st March 2004. Following the review of the EAC Organization Structure in 2006,
Mr. Katabaro was re-designated Principal Administrative Officer (P3), a position he
has held since. In addition, since the introduction of term limits for Professional Staff
in 2006 (Regulation 22(c) of the EAC Staff Rules and Regulations (2006),
Mr. Katabaros contract was renewed for a further five (5) years effective 1 st March
2009. His employment contract will be due for renewal with effect from 1 st March
2014 for a final term. However, he has expressed a desire not to renew his
employment contract with the Community. In this respect, Mr. Katabaros last day of
employment will be 29th February 2014.
The Council took note of the request for non- renewal and commended Mr. Katabaro
for his dedicated service to the Community. The Council also recommended that the
Secretariat initiates the process of filling in the vacant position of Principal
Administrative Officer (P3) arising thereof in line with the EAC Staff Rules and
Regulations (2006). The funds to facilitate the process of filling in the vacant position
are available under the budget for the financial 2013/2014.
The Council
(a) took note of the request for non-renewal of employment contract upon
expiry of first term on 29th February 2014 (EAC/CM 28/Decision ___);
(b) commended Mr. Abdul Katabaro for his dedicated service to the
Community (EAC/CM 28/Decision 70); and
(c) directed the Secretariat to initiate the process of recruitment to fill in the
vacant position of Principal Administrative Officer (P3) arising thereof
(EAC/CM 28/Directive 49).
7.2.1.8
The Council was informed that Dr. Flora Mndeme Musonda, former Director of Trade
passed away on 15th October 2013. The Council also took note of the request for
approval to initiate the process of replacement. Given the current capacity
constraints the Directorate of Trade is currently faced with, it was recommended that
the process of filling in the vacant position of Director for Trade (P5) arising thereof
starts immediately.
The Council
(a) posthumously commend Dr. Flora Mndeme Musonda for her dedicated
service rendered to the Community (EAC/CM 28/Decision 71); and
(b) directed the Secretariat to initiate the process of recruitment to fill in the
vacant position of Director for Trade (P5) arising thereof
(EAC/CM 28/Directive 41).
7.2.1.9
The Council was informed of the resignation of the Principal Civil Aviation Officer
Eng. Ladislaus Matindi, with effect from 24th December, 2013. The Council was
informed that in view of the very key projects and programmes under the subsector
requiring close coordination (including liberalization of air transport, Unification of the
Page 90
EAC Upper Airspace, implementation of the Aviation Search and Rescue Agreement
and the establishment of the Tripartite Joint Aviation Competition Authority), and that
the office was a one-man office, there was an urgent need to recruit a suitable
candidate for this position.
The Council
(a) commended Eng. Ladislaus Matindi for his dedicated service rendered
to the Community (EAC/CM 28/Decision 72); and
(b) directed the Secretariat to initiate the process of recruitment to fill in the
vacant position of Principal Civil Aviation Officer (P3) arising thereof
(EAC/CM 28/Directive 42).
7.2.1.10 Absorption of the Positions and Staff under the Peace and Security
Unit into the EAC Mainstream Staff Establishment
The Council was informed that since its establishment in December 2008, the Peace
and Security unit has been funded predominantly by the AU under the EAC /AU
Capacity Building Program and later the Africa Peace and Security Architecture
(APSA) Support Program. The Council was also informed that at its 16th Meeting, the
Council considered the recommendations of the Finance and Administration
Committee that included the migration of the Liaison Officer to the AU, the Peace
and Security Expert, the Early Warning Expert and the Peace and Security Officer to
Partner States funding. The Council was further informed that at its 18th Meeting
held on 4th September 2009, the Council vide Decision EAC/CM 18/Decision 96
took note of the positions already operational and will be subsumed in the structure
at its operationalization and which will transition to Partner States funding after June
2013 at which time the APSA support programs was supposed to have ended.
In addition, the Council was informed that following the delayed conclusion of the ongoing institutional review, the operationalization of the Peace and Security
Directorate that had been approved by the Council including the migration of the
identified positions as had been envisaged could not be undertaken. Furthermore,
the extension of the APSA Support Program to December 31 st 2014 temporarily
reduced the pressure on the proposed migration.
The AU has notified all RECs that a confirmation was yet to be received from the EU
on the possibility of extension of the funding. Given the non-committal of AU on the
possible extension, there was need for the respective RECs to take over the funding
of staff under the APSA support programme until the confirmation comes through,
otherwise the Community run the risk of having its peace and security operations
under the APSA being wound up come December 2014.
Taking into consideration the need for sustainability, the Council recommended that
the positions of the EAC/AU Liaison Officer (P5), the Peace and Security Expert
(P3), the Early Warning Expert (P3) and the Peace and Security Officer (P2) be
absorbed into the budget of the Community with effect from 1st January 2015. The
Council noted the need to take into consideration the two term limits accorded to
professional staff at the time of absorption, effective from 1st January, 2015. Upon
absorption, the Peace and Security Expert (P3), the Early Warning Expert (P3), and
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Peace and Security Officer (P2) will serve the remaining period of their term limits in
accordance with Regulation 22 (c) of the EAC Staff Rules and Regulations (2006).
The Council deferred the absorption of the above positions until the projects
are mainstreamed into the EAC (EAC/CM 28/Decision 73).
7.2.1.11 Review of the EAC Staff Rules and Regulations (2013)
The Council recalled that at its 20th Meeting held on 19th - 26th March 2010, it
approved, among others, the EAC HR Policy and Procedures Manual,
(EAC/CM20/Decision 87) and directed the Secretariat to submit the approved EAC
Policies and Procedures Manuals to the Sectoral Council on Legal and Judicial
Affairs for legal input (EAC/CM20 Directive 52).
Subsequently, the manuals were submitted to the 10th Meeting of the Sectoral
Council on Legal and Judicial Affairs held on 2nd-3rd November 2011 for Legal input.
The Sectoral Council
(a) took note of the EAC draft policies and procedures manuals;
(b) directed the Secretariat to only develop manuals that are specific to rules and
regulations; and
(c) advised the Council to only refer to the Sectoral Council those internal
management tools that require legal input.
Following the advice of the Sectoral Council and also based on the need to fill in the
gaps that had been identified since the last review in 2006, the need to
accommodate the various Council decisions and directives that have been issued
since 2007 and the need to bring on board best HR practices, the Secretariat
prepared Draft Staff Rules and Regulations (2013). The Secretariat convened a
meeting of experts to review and validate the Draft Staff Rules and Regulations. The
Council revised EAC Staff Rules and Regulations (2013) attached hereto as
Annex XL.
The Council
(a) took note of the progress made in the review of the EAC Staff Rules and
Regulations (EAC/CM 28/Decision 74); and
(b) referred the draft amendments to the EAC Staff Rules and Regulations
(2006) to the 16th Meeting of the Sectoral Council on Legal and Judicial
Affairs for legal input (EAC/CM 28/Decision 75).
7.2.1.12 Lake Victoria Basin Commission (LVBC)
(a)
Staff Confirmation
At its 25th Meeting, the Council appointed Mr. Patrice Niyongabo (Burundi) and
Mr. Telly Eugene Muramira (Uganda) to the positions of Deputy Executive Secretary
in charge of Finance and Administration (P5), and Deputy Executive Secretary in
charge of Projects and Programmes (P5) respectively for LVBC. In line with
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Regulation 31 of the EAC Staff Rules and Regulations, Mr. Niyongabo and
Mr. Muramira have served their probationary period and their performance and
conduct rated satisfactory as per the EAC requirements in the terms of efficiency,
competence and integrity. They are therefore recommended for confirmation in
employment with effect from the due date.
The Council confirmed Mr. Patrice Niyongabo, Deputy Executive Secretary in
charge of Finance and Administration (P5) and Mr. Telly Eugene Muramira
Deputy Executive Secretary in charge of Projects and Programmes (P5) in EAC
employment with effect from 3rd December 2012, (EAC/CM 28/Decision 77).
(b)
(i)
No. Position
1.
2.
3.
4.
Date of Expiry
of Contract
18/12/2013
18/12/2013
18/12/2013
02/12/2013
Although APL1 ended on 30th June 2013, the World Bank granted no cost extension
for a period of two years on 20th June 2012. To this effect the Bank approved a two
year Work Plan that includes salaries of four professional staff whose contracts are
due to expire as indicated in the table above. The above staff have been evaluated
and their performance appraisals are rated satisfactory. It is therefore recommended
that their contracts be renewed.
The Council renewed the contracts of staff in Table X above for another period
of two years with effect from their due dates subject to availability of funds,
(EAC/CM 28/Decision 78).
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(ii)
The Council was informed that at its 26th Ordinary and 26th Extra-Ordinary Council
Meetings directed LVBC to commence recruitment of the position of Senior
Accountant (EAC/CM 26/Directive 50), Communication and Development
Awareness Officer, Economist/Planning Officer (EAC/CM/EX/26/Directive 24);
Program Administrator for the Lake Victoria Water and Sanitation Programme
(EAC/CM/EX/26/Directive 34) respectively. Following the above decisions of the
Council, the positions were advertised by the EAC Secretariat in the main media
papers of all EAC five Partner States and on the EAC/LVBC website on 6 th May
2013.
In line with Regulation 21 of EAC Staff Rules and Regulations, a panel comprised of
Senior Officers from LVBC and EAC Secretariat was constituted to carry out a short
listing which was done at Sosa Cottages, Gisambai, Kenya from 12 th - 15th June
2012. An Interview Panel comprising representatives of all Partner States and LVBC
Secretariat then conducted interviews for the short listed candidates in Nairobi,
Kenya from 2nd to 5th July 2013. Taking into consideration the basic guiding
principles of merit and quota, the interview Panel recommended the following
candidates for appointment
(a) Mr. Evance D. Siangicha from The United Republic of Tanzania, who scored
73.81%, to the position of LVWATSAN Program Administrator (P1);
(b) Mr. Hatungimana Dieudonne from the Republic of Burundi, who scored
80.48%, to the Position of Economist/Planning Officer (P2);
(c) Mr. Willy Mugenzi from Republic of Rwanda, who scored 91.43% to the
position of Communication and Development Awareness Officer (P2); and
(d) Mr. Frank Munabi from the Republic of Uganda, who scored 91.67% to the
position of Senior Accountant. The interview report is attached as Annex XLI.
The Council appointed the following Staff with effect from 1st January 2014
(a) Mr. Evance D. Siangicha from The United Republic of Tanzania to the
position of LVWATSAN Program Administrator (P1) for a period of two
years renewable subject to availability of funds;
(b) Mr. Hatungimana Dieudonne from Republic of Burundi to the position of
Economist/Planning Officer (P2) for a period of five years renewable
once;
(c) Mr. Willy Mugenzi from Republic of Rwanda to the position of
Communication and Development Awareness Officer (P2) for a period
Five Years renewable once; and
(d) Mr. Frank Munabi from Republic of Uganda to the position of Senior
Accountant (P2) for a period of Five Years renewable once.
(EAC/CM 28/Decision 79).
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(iii)
The establishment of procurement position in the LVBC structure has become critical
to operations of the Commission given the continuously increased number of
Projects and Programs coordinated by LVBC and the subsequent tremendous
increase in the Budget over years (currently standing at more than US$ 30 million) of
which a big percentage is spent under procurement related services. It is against this
background that LVBC presented, at the 23rd Meeting of the Council, a request for
establishment of the position of Senior Procurement Officer for smooth operations of
the Commission. The Council of Ministers, taking cognizance of the critical need for
the officer established the above position to be considered in the ongoing
institutional review (EAC/CM/23/Decision 87).
At that time, the Council was informed that the World Bank was supporting the
Commission in procurement related matters under Lake Victoria Environmental
Management Project Phase Two (LVEMP II) through hiring of a Procurement
Assistant (G5) who was assisting the Principal Administrative Officer in the
overwhelming procurement duties. The technical staff, whose contract was running
up to October 2013, has tendered his resignation earlier August 2013 for greener
pasture at an international organization. In view of the foregoing, the recruitment of
Senior Procurement Officer is a matter of urgency to allow the Commission to
continue carrying out its operations.
The Commission therefore requests to be allowed to immediately recruit the above
mentioned officer. The salary for the officer for the current financial year can be
drawn in the current appropriation for LVBC without supplementary budget under the
provision for salaries for new staff that did not report early in this Financial Year and
will only report to duty from September 2013. Thereafter before conclusion of the
institutional review and for the budgeting purpose, it is proposed that the Position of
Senior Procurement Officer be swapped with the Position of Principal Health Officer,
which is established but not yet filled in. The proposed Job Description is attached
hereto as Annex XLII.
The Council was of the view that given the critical role of this function, the position be
established and filled immediately as requested by the LVBC Secretariat.
The Council directed Lake Victoria Basin Commission to recruit staff for the
above position (EAC/CM 28/Directive 43).
(iv)
The Council was informed that at its 15th Meeting, the Council appointed Dr. Jackson
Muhirwe from the Republic of Rwanda to the Position of Information Technology
Officer (P1). The Officer tendered in his resignation letter from this post, citing
personal reasons with effect from 31st July 2013. Given the critical role played by ICT
in the operations of the Commission, it is recommended that the Commission be
allowed to immediately commence the replacement process. This recommendation
takes into consideration the fact that there is a budgetary provision for the same for
the financial year 2013/14.
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The Council
(a) commended Dr. Jackson Muhirwe for his outstanding service to the
Community, (EAC/CM 28/Decision 80); and
(b) directed Lake Victoria Basin Commission to commence the process of
filling in the vacant position arising thereof, (EAC/CM 28/Directive 45).
(v)
Renewal of Contract for EALP/PHE Programme Coordinator (P3) Dr. Doreen Othero
The Council was informed that the Regional Program Coordinator is responsible for
overseeing all activities of the East African AMREF Lake Victoria
Partnership/Population Health and Environment (EALP/PHE) Program. These
include coordinating (a) the operations of the PHE regional office based at LVBC i.e. planning,
budgeting, monitoring and evaluation;
(b) coordinating PHE activities implemented by non-state actors;
(c) supporting the establishment/strengthening of PHE networks at national level;
convening meeting of the PHE RPSC, PHE Parliamentary Dialogue and
TWG;
(d) presenting the PHE program issues to the Sectoral Councils of Ministers and
other statutory meetings of the EAC. The Coordinators effectively ended on
30th September 2013.
The Council noted that the Officers contract will end on 30th November 2013. Her
performance had been appraised and rated outstanding. For effective management
of the program, the 12th Sectoral Council of Ministers for LVBC considered and
recommended that the officers contract be renewed for a further two years to
facilitate smooth coordination of the program activities.
The Council renewed the employment contract of Dr. Doreen Othero as
EALP/PHE Programme Coordinator (P3) for a period of two years with effect
from 1st December 2013 (EAC/CM 28/Decision 81).
(vi)
The Council was informed that the EALP/PHE Program Officer will mainly be
responsible for overseeing integration of FP/RH activities into LVBC Projects and
programs. Specifically, the Officer will undertake the following (a) coordinate the identification and selection of Community Based Organizations
(CBOs) within MERECP an LVEMP II programs, for participation in the PHE
FP/RH activities;
(b) participate in the PHE/FP/RH capacity building activities of the selected CBOs
and Local Authority leaders;
(c) Support the identified groups to integrate FP/RH activities within their
environmental conservation work plans;
(d) Support the establishment of linkages between the environmental
conservation programs and the Ministries of Health;
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(e) Liaise and work with the Ministries of health in provision of FP commodities
and RH services within the identified organizations;
(f) participate in the monitoring and evaluation of FP/RH integrated activities;
(g) work closely with the PHE Program Coordinator to oversee and report on
PHE activities of state and non-state actors in the LVB.
The Council was also informed that the Development Partner (USAID EA) had
allowed LVBC to recruit the Program Officer. The Job Description for the Program
Officer and the No Objection letter from USAID EA are attached hereto as
Annexes XLIII(a) and XLIII(b) respectively. The Council noted the recommendation
of the 12th Meeting of the Sectoral Council on LVBC held on 19 th October, 2013 that
considered and recommended to Council to approved recruitment of the PHE
program Officer (LVBC /SC12/Decision 32).
The Council (a) approved recruitment of Program Officer (P1) for the EALP/PHE
Programme (EAC/CM 28/Decision 82); and
(b) directed LVBC to expedite recruitment process of a Program Officer (P1)
in line with the provisions of the Financing Agreement for the PHE
Programme (EAC/CM 28/Directive 46).
7.3
The Council recalled the directive of the 16th Meeting of the Sectoral Council of
Ministers responsible for EAC Affairs and Planning (SCMEACP), among others, that
directed the Secretariat to ensure that in future the Calendar of Activities is
discussed by Finance and Administration Committee so that resources are aligned
and allocated appropriately. In addition, the Council recalled the directive of the 25th
Meeting of the Council that save for self-accounting EAC Institutions, EALA, and
EACJ, statutory/policy and technical meetings for Organs and Institutions of the EAC
should rotate and be shared between Headquarters and Partner States on a ratio of
50/50 basis (EAC/CM 25/Directive 12).
The Council noted that the proposed meetings in the calendar had been distributed
between the five Partner States and the EAC Headquarters based on the above
Council decision except for those meetings proposed to be held outside the EAC
region and those that must be held at specific locations. The Council also noted that
the meetings, as proposed in the Draft Calendar had been appropriately provided for
in the budget for the financial year 2013/14. The draft EAC Calendar of Activities for
the period January June 2014 is attached hereto as Annex XLIV.
The Council considered the EAC Calendar of Activities for the period of JanuaryJune 2014 and made necessary amendments to reflect the equal distribution of
meetings between the headquarters and Partner States and amongst the Partner
States. The Council noted the high frequency of meetings convened within a period
six months. In this regard the Council observed the need for the Secretariat in future
to do more technical work rather than sticking into coordination of activities and
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convene few meetings that involve the Partner States to validate what has been
done.
The Council (a) adopted the EAC Calendar of Activities January - June 2014
(EAC/CM 28/Decision 82);
(b) reiterated its previous decision/directive to the Partner States and the
Secretariat to strictly adhere to the EAC calendar of activities in terms of
dates and venues (EAC/CM 28/Decision 83); and
(c) directed the Secretariat that in future more technical work should be
done by the Secretariat and convene few Experts meeting to consider
the same (EAC/CM 28/Directive 47).
7.4
The Council observed that some of the items presented for discussion during the
meeting had not been included in the background documents that were sent to
Partner States. The Council expressed concern that this made discussions of such
items difficult due to the fact that Partner States had not had time to consult on such
issues before coming for the meeting. The Council recommended that in future,
items not included in the background documents sent to the Partner States for their
consultations should not be discussed. Furthermore, the Council emphasized that
the Finance and Administration Committee should only be provided with matters
within its mandate.
The Council directed that
(a) in future, items not included in the background documents sent to
Partner States should be submitted for consideration at the next Meeting
(EAC/CM 28/Directive 48); and
(b) Finance and Administration Committee should only be provided with
matters within its mandate (EAC/CM 28/Directive 49).
7.5
REQUIREMENTS
ALLOCATIONS
FOR
SUPPLEMENTARY
AND
BUDGET
RE-
The Council observed that some requests for supplementary and budget reallocations were not accompanied by detailed MTEF documents. In this regard, the
Council was of the view that such requests should be accompanied by detailed
MTEF submissions and in line with Regulation 20 of the EAC Financial Rules and
Regulations (2012).
The Council directed that in future, requests for supplementary budgets and
budget re-allocations should be accompanied by detailed MTEF submission
and in line with Regulation 20 of the EAC Financial Rules and Regulations
(2012) (EAC/CM 28/Directive 50).
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PART VIII
Pursuant to Article 14(3)(b) of the Treaty, the Council is required to submit Annual
Progress Reports to the Summit. The Council is, therefore, expected to consider the
Annual Report of the Council to the Summit for the period December 2012
November 2013 attached hereto as Annex XLV. The Council noted that the
preparation of the Annual Progress Report of the Council to the Summit for the
period December 2012 November 2013.
The Council adopted the Annual Progress Report to the Summit for the Period
of December 2012 November 2013 for submission to the 15th Summit
(EAC/CM 28/Decision 84).
PART IX
9.1
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The development of Case Management and Digital Recording Systems are going
on. The process is in its final stages after the installation of the necessary Courtroom
equipment.
The Council
(a) took note of the developments in the EACJ (EAC/CM 28/Decision 85);
and
(b) commended Hon. Lady Justice Mary Stella Arach Amoko for exemplary
service to the Community (EAC/CM 28/Decision 86).
9.2
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(d) Resolution of the Assembly urging the EAC Partner States to study the
security impact of Genocide Ideology and denial in the region;
(e) Resolution of the Assembly to decide the issue of rotational sittings in Partner
States of the EAC by the whole House.
9.2.1.4 Priority Questions
During the same Meeting, three (3) Priority Questions were asked by various
Members on wide ranging subjects related the Communitys operations. All the
questions were dully answered by the Chairperson of the Council of Ministers.
9.2.1.5 MDGS Conference and GPH Anniversary
The East African Legislative Assembly (EALA) in collaboration with the Global
Parliamentarians on Habitat (GPH) Africa Chapter held a two day conference on
MDGs and the Habitat Agenda in Arusha. The Conference, which took place at the
EAC Headquarters from August 19th - 20th 2013, also marks the 25th Anniversary
celebrations of the GPH. The conference brought together 150 participants including
EALA Members, Speakers from the National Assemblies, and Members from
National Parliaments in the EAC and the African continent, UN bodies as well as
Civil Society Representatives.
The Conference aimed at showcasing significant achievement, challenges and come
up with feasible solutions and way forward; brings influence to bear on decision
making processes in order to foster coordinated actions by governments,
communities, the Private Sector and non-governmental organizations; and raise
awareness on adequate habitat.
9.2.1.6 Taking Oath
Rwandas new Minister for East African Community Affairs, Hon. Jacqueline
Muhongayire was sworn-in as an Ex-Officio Member of EALA on 29th August, 2013.
The Oath of Allegiance to the House was administered before the EALA Speaker,
Rt. Hon. Dr. Margaret Nantongo Zziwa.
The Member took the oath in accordance with Rule 6 of the Rules of Procedure of
the Assembly. The Rules of Procedure say in part that: No Member can sit or
participate in the proceedings of the House until the Oath or Affirmation of Allegiance
to the Treaty is taken.
9.2.1.7 Election Observation
The Assembly in conjunction with the Electoral Management Bodies (EMBs), Civil
Society Organisations (CSOs), National Human Rights Commissions from four EAC
countries namely Burundi, Kenya, Tanzania and Uganda and the EAC Secretariat
participated in the EAC Observer Mission Parliamentary Elections, which took place
from 16th 18th September 2013 in the Republic of Rwanda.
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9.2.1.8 Oversight
With funding from the EAC Partnership Fund, all the seven Committees of the
Assembly were able to carry out oversight/on-spot assessment of EAC Projects and
Programmes. The reports were presented to the House for consideration and were
adopted. The reports offer useful recommendations on where improvements are
needed, and were circulated to all the relevant stakeholders.
9.2.1.9 Relations with Others
The Assembly is a key player in both Regional and International fora and therefore
continued to relate with a number of key stakeholders both at Regional and
International levels. It is on the basis of this recognition that EALA participated in a
number of meetings, workshops and seminars, namely (a) The EALAs Conference on MDGS and Global Parliamentarians for Africa in
Arusha, Tanzania from 19th - 20th August, 2013;
(b) The 59th Commonwealth Parliamentary Conference from 28 th Aug6th September 2013 in Johannesburg, South Africa;
(c) Peer Learning Forum on Mainstreaming adaptation and Disaster Reduction
into Development from 4th - 6th September 2013, in Nairobi, Kenya;
(d) The 3rd Global Economic Leaders Summit (GELS 2013) from 4th 6th September, 2013 in China;
(e) The International Consultation on Land Justice for Sustainable Peace from
9th - 13th September,2013 in Dar es Salaam, Tanzania;
(f) The EAC Election Observer Mission to the Parliamentary Elections in Rwanda
from 10th 19th September in Rwanda;
(g) RWI/EACJ Stakeholders Workshop from 3rd - 4th October, 2013 in Nairobi,
Kenya;
(h) The 129th Assembly of the Inter-Parliamentary Union (IPU) from 7th 9th October, 2013 in Geneva, Switzerland; and
(i) The 2nd EAC Secretary Generals Forum from 7th - 8th October, in Nairobi,
Kenya.
The Council took note of the Report of the East African Legislative Assembly,
(EAC/CM 28/Decision 87).
PART X
10.1
This Report is made in accordance with the requirement of Article 13(1) of the
Protocol on the Establishment of the East African Civil Aviation and Safety and
Security Oversight Agency (CASSOA) which requires the Agency to make reports on
its activities to the Council. During the period under review the Agency has carried
out the following activities while implementing its strategic plan and in compliance
with the objectives spelt out in the Protocol.
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primary and legislative, by some Partner States reduces the Level of Effective
Implementation of ICAO Standards and Recommended practices.
10.1.4 Support to ICAO Safety Audits of EAC Partner States
The Agency continues to provide assistance, guidance and support to Partner States
in their efforts to meet ICAO obligations and compliance with International Standards
and recommended practices. The Republics of Kenya, Rwanda and Tanzania
successfully completed ICAO Safety audits for effective compliance with active
participation of the Agency in the preparations for the audits. A dedicated team of
experts composed of members drawn from the EAC Partner States and the Coordination and leadership of the Agency are positioned in Burundi which is
undergoing the first ICAO Safety audit. The Agency will also provide support to the
implementation of the Corrective Action plans after the audits. This initiative of a
regional approach using the developed regional capacity will further be employed for
the ICAO Safety audit of Uganda in June 2014 and beyond.
10.1.5 Funding Challenges
CASSOA continues to encounter a number of challenges in its operations as a result
of lack of adequate funding. The challenge of restricted funding due to failure to
adopt a sustainable funding mechanism has serious consequences on the Agency
effectiveness and operations. At the 10th Meeting of the Sectoral Council on TCM,
the Agency presented the revised proposed charge from $0.70 to $0.30 per
embarking passenger in compliance with the Council directive. This was done at the
review of the Strategic and Organisation Development Plans. However some Partner
States are not in favour of a charge and have sought for further consultation on the
new proposed charge of $0.30 and report their positions to the 4 th Extraordinary
Meeting of the Sectoral Council on TCM scheduled for November 2013.
The Agency as a regional safety and security oversight organization is required to
have a defined structure with specified number of staff in order to effectively carry
out its mandate. However, due to financial constraints that have led to inability to
attract technical expertise, the staff strength and constitution the CASSOA continue
to be below the acceptable ICAO recommended structure composition. The function
of Safety oversight requires uncompromised continuously monitored and execution
of corrective actions plans.
As a priority, the Agency requires recruiting experts in Aerodromes and Ground Aids
(AGA), Aviation Security (AVSEC), Air Navigation Services (ANS) and Flight
Operations. These experts are required to coordinate, monitor compliance, assist,
and perform support activities to enhance Partner States safety and security
oversight obligations. This recruitment has financial implications that are impossible
to be absorbed under the current funding mechanism. The current funding
mechanism of the Agency by Civil Aviation Authorities has limitations and it has
become increasingly difficult for the required increments to be made. This has been
compounded by the diverse aviation industry activities at Partner States level leading
to the inability by some States to adhere to Treaty provisions of equal contributions
to CASSOA. Currently the contributions of Republics of Rwanda and Burundi are
less than those of the other Partner States.
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The Agency will continue to be under staffed and unable to effectively perform its
functions as mandated if the current funding mechanism is maintained. The funding
needs to be improved and sustainable to meet the demands prompted by the
aggressively growing aviation industry and avoid the probable collapse of the
Agency.
10.1.6 Status of Outstanding Land Title
There has been progress in the issuance of the Land Title on which the Agencys
headquarters is located at Entebbe, Uganda. The Uganda Land Commission issued
the titles to Civil Aviation Authority Uganda for use by CASSOA. However, this was
contrary to the directive of the Council that the title should have been issued directly
to the East African Community - CASSOA. It is imperative that Civil Aviation
Authority Uganda transfers title of ownership to EAC CASSOA. This anomaly has
consequentially become an audit query as the Agencys accounts seem deceptive.
There is need for the Republic of Uganda to further expedite the process of transfer
of land title to the Agency.
The Council
(a) took note of the activities of the Agency, (EAC/CM 28/Decision 88);
(b) directed the Republic of Kenya to expedite the conclusion of the Hosting
process of Centre for Aviation Medicine as a Unit of CASSOA,
(EAC/CM 28/Directive 51);
(c) took note of the inadequate funding mechanism of the Agency,
(EAC/CM 28/Decision 89);
(d) took note of the status of Operationalization of the EAC Aviation
Examination System and outstanding submission of examination
question by Republic of Kenya to the CASSOA repository and report to
the Council at its 29th Meeting, (EAC/CM 28/Decision 90);
(e) directed Partner States to promulgate all developed and amended
regulatory instruments-Primary and legislative to ensure uniform
implementation, (EAC/CM 28/Directive 52); and
(f) reiterated its previous decision directing the Republic of Uganda to
expedite the process of transferring the Land title to EAC CASSOA from
CAA Uganda, (EAC/CM 28/Decision 91).
10.2
The 12th Sectoral Council Meeting on Lake Victoria Basin was held on the
19th October 2013, in accordance with the Lake Victoria Basin Commission (LVBC)
Calendar of activities. It will be recalled that the 11th Sectoral Council Meeting on
Lake Victoria Basin held on 14th February 2013, ended at the level of the Coordination Committee on account of lack of quorum for the Session of Ministers. The
Ministerial Session of the 12th Meeting of the Sectoral Council took note of the fact
that owing to incompletion of the 11th Meeting of the Sectoral Council some actions
that required directives had been overtaken by events. However, the Ministers
deliberated on the matters arising from the Report of the Co-ordination Committee
that still required directives and guidance of the Ministers.
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human health, ensuring the effective use of water resources and facilitating the
development of the populations living within the Lake Victoria Basin.
The standards were developed in the wide consultative manner among Partner
States through various technical validation processes. The Standards were
considered and approved by the 10th Meeting of the Sectoral Council that was held
in Kigali, Rwanda on the 4th May, 2012 (LVBC/SC10/Decision 07) and the same
need to be adopted by the Council. The Full Report on the standards is attached as
Annex XLVI.
The Council noted that whereas the Sectoral Council on LVBC decoded that the
Council of Ministers should rescind its previous decision regarding matters related to
Human Resources, Finance and Administration, it is still necessary for the
Commission to refer the same matters to the Finance and Administration Committee
for technical input.
The Council
(a) adopted decisions of the 11th and 12th Meetings of the Sectoral Council
on Lake Victoria Basin, (EAC/CM 28/Decision 92); and
(b) adopted the Report on Regional Standards for Industrial and Municipal
Discharges into Sewers and Water Bodies in the Lake Victoria
Basin(EAC/CM 28/Decision 93).
10.3
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The LVFO Council of Ministers noted the increased expenses with LVFO
mainstreaming into EAC. The Council approved LVFO budget for financial year
2014/2015 based on country contributions of US$ 320,000 for the three Partner
States and an increase of 5% annually thereafter. The Council reminded the three
Partner States to pay the remaining balances towards Operational Save Nile Perch
by June 2014 and use the funds to implement a re-planned strategy.
The LVFO Secretariat continued to operate with a very lean staff (2 Executives;
4 Professionals; 3 General Staff; 3 Secretaries; 3 Drivers and 2 Support Staff). The
EAC Audit Commission noted the need to recruit an Internal Auditor, Procurement
Officer and a Systems Administrator, while the approved positions (7th Regular
Session of LVFO Council Report Feb. 2009, Dar) include Aquaculture Expert;
Information and Communication Officer and two support positions. With the intended
widening of scope and mandate and as the three Partner States are moving into
commercial aquaculture; the efficiency of the organization would be enhanced if all
the approved staff positions are considered and budgeted for. The LVFO Council of
Ministers directed LVFO Secretariat to recruit an Internal Auditor this financial year
and Database Administrator when funds are available.
The Council
(a) took note of the status of implementation of the LVFO Programs and
previous directives of the Council, (EAC/CM 28/Decision 94);
(b) directed that funding to LVFO should be paid through the EAC
Secretariat and be followed up by the Ministries Responsible for EAC
Affairs in the Partner States once the Republic of Burundi and the
Republic
of
Rwanda
are
integrated
into
the
LVFO,
(EAC/CM 28/Directive 54);
(c) took note of LVFO budget for financial year 2014/2015 based on
US$ 320,000 by the three Partner State and an annual increase of 5%
thereafter by the LVFO Council of Ministers, (EAC/CM 28/Decision 95);
and
(d) took note of LVFO Council recommendation to amend the LVFO
Convention to integrate the Republic of Burundi and the Republic of
Rwanda into LVFO, (EAC/CM 28/Decision 96).
10.4
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The partnership has now expanded to include the East African Development Bank
(EADB) that has joined in, in organizing the 2013 Academia-Private Sector
Partnership Forum and Exhibitions to take place in Nairobi, Kenya on 24 th
26th October 2013 under the theme Bridging the Academia and the Private Sector
through Engagement with the Public Sector. The Forum will discuss practical
aspects of establishing academia and private sector partnerships in East Africa.
The discussions will be guided by results from a survey being undertaken by IUCEA
and EABC establishing the current status of academia-industry linkages in the
region. Participants will explore on how the survey results would enable the Partner
States, EAC Secretariat, the private sector and EABC, IUCEA, EADB and
universities to define appropriate incentive regimes, linkage support systems and
competence building frameworks for the development of effective academia and
private sector partnerships in the Community.
The Forum will be conducted mainly through roundtable discussions focused on (a)
the status of academia private sector linkages in East Africa based on results from
the survey that IUCEA and EABC has just accomplished; (b) how the Government is
supporting the development of skilful, competent and entrepreneurial human
resources for promoting innovations and industrialization in the region; (c) how the
private sector is promoting industrialization, entrepreneurship, and innovation
development; (d) the role of quality assurance and qualifications framework in
promoting the development of skilful, competent and entrepreneurial human
resources; and (e) how the private sector could promote skills development through
student attachment and apprenticeship programmes. Furthermore, higher education
institutions, private sector institutions, government institutions, and other
stakeholders have been invited to participate in the exhibitions to be held in parallel
with the Forum, as a way of promoting and enhancing academia and private sector
partnerships. Other activities have been reported under the section on Social
Sectors in Part IV of this report.
The Council took note of the Report of the Inter-University Council for East
Africa (EAC/CM 28/Decision 97).
10.5
EADB is the apex development financial institution of the East African Community
with a mandate to promote sustainable socioeconomic development and integration
of its member states through development finance, support and advisory services. Its
current vision is to be the partner of choice in promotion of sustainable socio
economic development.
The Bank is internationally rated. In July 2013, Moodys Investors Service assigned
EADB a rating of Ba1 (stable), on the back of a strong governance and risk
management policies and successful consolidation of its operations. This is only one
notch lower than investment grade and makes EADB, the highest internationally
rated institution in East Africa.
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The Bank has been rated second best development bank in Africa out of 39 African
Financial Institutions. The rating was assigned by the Association of African
Development Finance Institutions (AADFI) during the PEER Review concluded on
15th November 2013. The rating is based on level of compliance with Prudential
Guidelines, Standards and Rating System (PSGRS). The PSGRS focuses on
Governance and Management Standards; financial Prudential Standards and
Operational Standards. The rating exercise is very important in transforming DFIs, in
monitoring and ensuring compliance with best standards, and promoting greater
transparency and adherence to good governance. It is a good criterion for
benchmarking, and also enhances prospects for resource mobilization. The recent
rating positions the Bank at competitive edge to it peers in resource mobilization.
The rating has further reaffirmed the international credit rating of the Bank.
The Blueline litigation was finally determined on 30th May, 2013. The Court of Appeal
of the United Republic of Tanzania dismissed Bluelines application with costs.
This year marks the third year of the current EADB Five Year Strategic Plan. The
Banks profit as at September 2013 was US$ 5.97 million. The Bank has the best
liquidity position of its peer group development finance institutions with liquid assets
comprising 58% of its total assets as at end of 2012. The robust liquidity position
insulates the Bank from shocks, putting it in a good position to undertake the
portfolio expansion envisaged in the growth phase of the strategic plan. The strategic
plan envisages growth from 2014.
The restructuring of the Bank since 2009 has strengthened the Banks asset and
capital position. As at end of September 2013, non-performing loans were at a
historically low of 1.9% of the gross disbursed loans while strong shareholder
support and improving profitability have increased shareholder funds to
US$ 153 million from US$ 82 million at end of 2008. At end 2012, the Bank had a
risk-weighted capital adequacy ratio of 77% which is better than most commercial
banks and significantly exceeds the Basel II ratio of 15%, for a fully compliant
development finance institution.
To supplement a robust pipeline, an active resource mobilisation programme is in
place. The African Development Bank (AfDB) recently subscribed to an additional
capital of US$ 24 million (including callable capital of US$ 14 million) while the
European Investment Bank extended a line of credit of Euros 25 million (available in
both local and foreign currency). The AfDB has also extended to EADB an
institutional strengthening grant US$ 915,000 under its Fund for African Private
Sector Assistance (FAPA) programme. In addition, EADB is preparing to launch the
first ever region wide bond issue programme, the Umoja Bond which is expected to
raise US$ 120 million at conclusion.
EADB partners with other development agencies to address development challenges
in the region. Recently, the Bank partnered with the German Development Finance
institution, DEG, to upgrade its Environment and Social Management Systems
(ESMS) while an on-going partnership with the United Nations Framework
Convention on Climate Change (UNFCCC) has led to the establishment of a
Regional Collaboration Centre (RCC), at the EADB head office in Kampala. The
RCC covers 25 countries in Eastern and Southern Africa (including the five EAC
Page 112
countries) and is aimed at increasing the participation of these countries in the Clean
Development Mechanism (CDM) projects by building their capacity and reducing risk
for investors.
It is estimated that at the end of 2012, EADB financed projects were supporting in
excess of 15,700 jobs and contributed in 2012 alone, in excess US$ 21 million to the
treasuries of EAC member states in form of taxes. EADB enjoys preferential creditor
status in its member states equivalent to that of the World Bank and the Africa
Development Bank.
The Council took note of the Report of the East African Development Bank,
(EAC/CM 28/Decision 98).
The Technical Team on the negotiations with South Sudan held its 1 st meeting took
place on 8th 9th November 2013 in Arusha, Tanzania and the 2 nd meeting on 18th
20th November in Entebbe Uganda.
The meetings finalized the Negotiation Framework attached to this report as
Annex XLIX and programme to guide the negotiation with South Sudan for
consideration and adoption by the sessions of the Permanent/Principal Secretaries
and subsequently the Ministers/Cabinet Secretaries. The framework is based on the
following:(a) The provisions of the Treaty and its annexes (including Protocols, EAC
legislation and other instruments) and the East African Community
Development Strategy 2011/2012-2015/16 as the primary acquis
communitaire in establishing the Republic of South Sudans readiness to join
the Community; and
(b) The report of the Verification Committee to guide the negotiations in
establishing the Republic of South Sudans commitment to address all
identified challenges in order to comply with the criteria for admission.
Negotiation questions and indicators of compliance by South Sudan on various
matters in the Framework have been agreed upon at the Technical Team level. In
line with the previous Council decisions on the negotiations with South Sudan, the
subsequent activities have been proposed as follows -
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(a)
(b)
(c)
(d)
(e)
(f)
The Council a)
b)
PART XII
12.1
The Republic of Burundi recalled that following the establishment of the East African
Health Research Commission, the East African Science and Technology
Commission and the East African Kiswahili Commission by the Council, there is
need to assess progress. The Secretariat informed the Council that establishment
requires ratification of the relevant Protocols as has been directed by the Council. In
this regard, The United Republic of Tanzania has not yet ratified the Protocols
establishing the East African Kiswahili Commission and the East African Health
Research Commission; the Republic of Uganda has not ratified the Protocol on the
establishment of the East African Kiswahili Commission. It is important that this
process be completed in order to hasten the establishment of these institutions.
The Council reiterated its previous decisions directing The United Republic of
Tanzania and the Republic of Uganda to ratify these Protocols by
31st December 2013, (EAC/CM 28/Decision 100).
12.2
The Council observed the need to re-energize the Community and address enduring
challenges such as concluding institutional review, whose finalization has been
pending for some time. In this regard, it is important for the Council as policy organ
to effectively promote, monitor and keep under constant review the implementation
of the programmes of the Community. This necessitates the avoidance of
unnecessary delays in decision making, undertaking of studies and implementation
of decisions and directives of the Council. There is also need for the Council, through
the active participation of Ministers responsible for EAC Affairs, to have more powers
to oversee progress on a quarterly basis as has already been agreed.
Page 114
of
the
need
to
revitalize
its
performance
Agronomist;
Policy, Programmes and ICT Expert (cross cutting);
M&E Officer (cross cutting);
Animal Production Officer;
Veterinary Officer;
Fisheries Officer.
However, at its 6th Meeting, the Sectoral on Agricultural and Food Security Council
further scrutinized and identified the immediate priority positions as follows (a) Agronomist;
(b) Veterinary Officer; and
(c) Fisheries Officer.
Page 115
...
Mr. Joseph Ole Lenku
Cabinet Secretary
Ministry of Interior and
Coordination of National
Government
...
Hon. Samuel J. Sitta,
MP
Minister for East African
Cooperation
THE REPUBLIC OF
KENYA
...
Hon. Lontine
Nzeyimana
Minister
Ministry to the Office of
the President
Responsible for EAC
Affairs
THE REPUBLIC OF
BURUNDI
...
Hon. Jacqueline
Muhongayire
Minister for East African
Community
...
Hon. Shem Bageine, MP
Minister of State
Ministry of East African
Community Affairs
THE REPUBLIC OF
RWANDA
THE REPUBLIC OF
UGANDA
Page 116