EALA Accounts Committee Chairman, Mr Mundela Mbombo Joseph.
By David Chikoko
The East African Legislative Assembly (EALA), the body mandated to approve the East African Community’s (EAC) expenditure, has sounded strong alarm over looming financial crisis due to the persistent failure by Partner States to remit their contributions.
During a virtual sitting early this week, EALA adopted the Accounts Committee’s Report on the Audited Accounts for the Financial Year ended June 30, 2022. The report paints a bleak picture of a regional bloc struggling to meet its obligations due to financial indiscipline among its members.
“Without urgent and collective action by Partner States, the EAC risks grinding to a halt,” the report concluded.
Presenting the findings, Committee Chairman, Mr Mundela Mbombo Joseph, revealed that by June 2022, Partner States owed the EAC a staggering dollars 71.3 million, compared to dollars 53.4 million the previous year. “This alarming trend cripples the Community’s ability to implement regional programmes and undermines the integration agenda,” he said.
Despite operating on an approved budget of dollars 105 million, the EAC managed to spend only dollars 72.7 million, reflecting a deficit of 31 per cent. While donor support rose to USD 43.2 million, the Community’s operations remained hamstrung by erratic and delayed contributions from Partner States.
The financial shortfall has forced the EAC to freeze recruitment across its organs and institutions, leaving 26 per cent of positions unfilled. This staffing crisis weakens the bloc’s ability to deliver on its mandates and slows down critical activities.
Moreover, the audit report showed that only 32 per cent of previous audit recommendations had been implemented while 39 per cent remained untouched. Procurement irregularities, poor asset documentation and conflicts of interest were cited as ongoing governance issues that require urgent redress.
Adding to the fiscal burden, the EAC is still owed dollars 5.0 million in VAT refunds from its members. The Accounts Committee called for enhanced financial discipline, a stronger culture of compliance and improved accountability mechanisms.
The Assembly urged the EAC Secretariat to intensify pressure on defaulting states, finalise the long-overdue Institutional review exercise and operationalise an anti-corruption and risk management framework to safeguard the Community’s future.
