EAST AFRICAN COMMUNITY ______

Official Report of the Proceedings of the East African Legislative Assembly

22ND SITTING – FIRST ASSEMBLY: THIRD MEETING – SECOND SESSION

Monday, 12 May 2003

The East African Legislative Assembly met at 10.40 a.m. at the Chamber of the Assembly, Ngorongoro Wing, Sixth Floor, AICC Complex, Arusha

PRAYERS

[The Speaker, Hon. Abdulrahman Kinana, in the Chair]

The Assembly was called to Order.

COMMUNICATION FROM THE “The Members of the Assembly shall be: CHAIR (b) Five ex-officio members consisting Administration of Oath of:

The Speaker: Honourable Members, I (i) the Minister responsible would like to inform you that we have a for regional co-operation new Member, the Hon. Kalonzo from each Partner State”. Musyoka, MP and Minister for Foreign Affairs and International Cooperation of Following general elections in Kenya in the Republic of Kenya. The Hon. December 2002, which were won by the Kalonzo Musyoka replaces the Hon. National Rainbow Coalition of H.E. Nicholas Biwott, former Minister of Mwai Kibaki, the mantle of regional Trade and Industry, who also held the cooperation was transferred to the portfolio of Regional Cooperation. Ministry of Foreign Affairs and International Co-operation, and the Honourable Members, you may wish to portfolio was entrusted to the Hon. recall that Article 48 of the Treaty Kalonzo Musyoka. But before the Hon. provides for the Membership of the Kalonzo Musyoka can be able to sit in Assembly, but in particular, Clause 1, the Chamber of the Assembly, he has to Para (b) (i) states that: fulfil one more condition.

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Monday, 12 May 2003 The East African Legislative Assembly Debates

Pursuant to provisions of Rule 6 of the The House Business Committee also Rules of Procedure of the House, no deliberated on a number of issues and Member of the Assembly may sit or vote made the following decisions. That: in the Assembly before taking the Oath of Affirmation of Allegiance to the i. The House Business Committee Treaty. shall meet with the honourable ministers immediately after the May I now request any two honourable adjournment of the House; Members, who happen to know the Hon. Kalonzo Musyoka, to present him before ii. All Official Communication the Speaker to take the oath? Thank you. from the Assembly to other bodies of the EAC and outside (The Hon. Kalonzo Musyoka was organs, including soliciting for presented before the Speaker) funding, should be by or through the Speaker or the Clerk in order The Oath of Allegiance was to have a coordinated approach administered to the following Member: to issues;

Mr Stephen Kalonzo Musyoka, iii. The EALA is expected to draw MP, Minister for Foreign Affairs up an Annual Legislative and International Co-operation Programme so that it is (Kenya) incorporated in the overall EAC Calendar of Activities. All COMMUNICATION FROM THE members who have business they CHAIR wish to introduce in the course of the next financial year should The Speaker: Honourable Members, I forward it to the Clerk by would like to make the following Thursday, 15 May 2003; Communication regarding the Programme of work of EALA for the iv. The House Business Committee current meeting scheduled between will hold a joint sitting with all today Monday, 12 May 2003 to Friday, chairpersons of other committees 23 May 2003, and other related matters. on Friday, 16 May 2003, at 3:00 p.m. here in the Chamber of the You will recall that the Clerk, early last Assembly. The Agenda would week, issued a tentative programme of be to deliberate on the work for the Assembly, pending the implementation of the funding formal decisions of the House Business agreement between NORAD and Committee. EALA. Copies of this Agreement The House Business Committee sat will be circulated to all of you. yesterday, and in accordance with the All chairpersons are requested to mandate conferred upon it, came up with consult their Members in the final programme, which has now readiness for the meeting of been circulated to you this morning. I Friday. implore you to study the new programme and adjust accordingly.

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v. During our visit to Uganda in (a) Committee of Ways and Means March this year, the Assembly to consider and approve the made a commitment to the Financial Statement; and displaced and suffering people of (b) Committee of Supply to Gulu and other affected districts consider and approve the that we would make a Estimates of Expenditure; both contribution towards their of which constitute the livelihood. The House Business Budgetary Proposals of the East Committee proposes that every African Community for the member makes cash contribution Financial Year 2003/04. of no less than US 100. Please kindly pass on this contribution LAYING OF PAPERS to Hon. Yonasani Kanyomozi, who will officially deliver this The following Papers were laid on the assistance on behalf of EALA at Table: (By the Chairman of the Council the close of this Budget Meeting. of Ministers)

MOTION i. Financial Statement for the EAC for the Financial Year 2003/2004 FOR THE PRESENTATION OF THE BUDGET PROPOSALS FOR THE EAC ii. Estimates of Expenditure for FOR THE FINANCIAL YEAR 2003/2004 EAC for the Year 2003/2004

The Chairperson, Council of Mr Wapakhabulo: Mr Speaker, sir, the Ministers (Mr. James Wapakhabulo) Budget Estimates for the Financial Year (Uganda): Mr Speaker, sir, before I 2003/2004 is being presented against the move the Motion, let me take this background of the intensification of the opportunity to congratulate my regional integration process in East colleague, Hon. Stephen Kalonzo Africa. During the Financial Year Musyoka, who has just been sworn in, 2002/2003, the regional organisation and has joined us officially in the continued to realize good progress. Chamber of this House. In doing so, I Major achievements were made on both have no doubt that I speak, not only on institutional matters and implementation behalf of the leadership of the Assembly, of regional projects and programmes. but also the entire membership of the There were positive indications of entire Assembly. growing interest in the Community, and demand for regional strategies and Mr Speaker, sir, in accordance with the programmes on the broad range of the provisions of Articles 49(2)(b) and 132 areas of co-operation. (2) and (5) of the Treaty, and Rules 74(1) and 75(1) of the Rules of The regional organization came under Procedure of the Assembly as amended, increasing pressure from the various I beg to move that this esteemed stakeholders to demonstrate tangible Legislative Assembly do resolves itself achievements and benefits. In particular, into: there were widespread expectations for the timely establishment of the East African Customs Union, among other

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Monday, 12 May 2003 The East African Legislative Assembly Debates critical requirements of the regional iii. Intensification of the integration process. The expectations outreach programme of remain high for faster progress towards the Community; eased and increased movement of people, goods and services across borders; development of infrastructure; iv. Strengthening of relations increased trade and investment into the with the development region; levels of productivity and partners; and exports and launching of projects to improve the standards of health, quality v. Institutional development. of the environment and other social conditions. The Customs Union

Prioritization of Projects Mr Speaker, sir, the launching of the Second East African Community Mr Speaker, sir, in view of the Development Strategy 2001-2005 in foregoing, the Council of Ministers, in 2001 ushered in the era of steadfast and providing direction to the regional systematic implementation of the Treaty integration process, recognized the need for the Establishment of the East African to reflect on the operational strategy. Community. The emphasis during this Taking into account the multiplicity of period on the conclusion of the Protocol the issues that are finding their place on on the Establishment of the East African the regional agenda, the need was felt to Customs Union was in accordance with rationalize and streamline the efforts the provisions of the Treaty that the towards focused, tangible and expedited Customs Union shall be the entry point achievements. of the regional integration process. The Partner States undertook to conclude the In line with the Development Strategy protocol within a period of four years; and the Indicative Plan of Action, areas that is, by end of November this year. of priority and focus on projects were identified with a view to rendering the In this regard, it is gratifying to note that greatest impact on the ongoing the long process in the formulation of a implementation of the Treaty. The five customs union protocol, which started in identified areas of priority were: 1999, was taken to an advanced stage during the period under review. A draft i. The formulation of the protocol on the Customs Union is almost East African Customs ready. The only major outstanding issue Union; is the determination of the common external tariff, an issue that is now ii. Co-ordination and before the Summit for determination. It promotion of is, therefore, our great hope and desire development activities in that the protocol will be concluded by the Lake Victoria Basin; the end of this year as scheduled.

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Monday, 12 May 2003 The East African Legislative Assembly Debates

on Legal and Judicial Affairs. The study Lake Victoria Basin to assess the potentials and constraints for sustainable development of the Lake Mr Speaker, Sir, the focus on the Lake Victoria Basin was conducted in the Victoria stems from the appreciation of period under review. the fact that the lake is undoubtedly the most important shared resource of the On the basis of a provisional report of EAC Partner States. In 1999, the EAC this study, a strategy was formulated for Heads of State, in their definitive the promotion of the opportunities for declaration, designated the Lake Victoria development and investment in the Lake and its Basin “an area of common Victoria. As the first major activity in economic interest” and “a regional this regard, EAC conducted a successful economic growth zone”, which shall be promotional drive for investments in the developed jointly by the Partner States. Lake Victoria Basin at the World The Heads of State further directed that Summit on Sustainable Development a co-coordinating body should be (WSSD) in Johannesburg, South Africa established for the “overall management (26 August – 4 September 2002). and rational utilization of the shared resources of the lake”. EAC participated effectively in the main event, the plenary sessions of the World In the fulfillment of these directives, and Summit at which the three EAC Heads following the conclusion of a study that of State presented a Joint EAC was commissioned on the institutional Statement. The EAC also took part in and legal framework, the Lake Victoria the side events, which were held parallel Development Programme (LVDP) was to the Summit. In this regard, EAC established in 2001. Within slightly over exhibited promotional literature about one year of its launch, the LVDP has EAC in general, and the Lake Victoria taken definite shape and form, and has Basin in particular, at the main assumed dynamism of its own. exhibition venue (Ubuntu Village).

Activities that were launched or Two seminars were also held on EAC- accomplished during this period include: Baltic Sea Co-operation, one of which The establishment of the Lake Victoria was attended and addressed by the three Development Programme Unit at the EAC Heads of State, the Swedish Prime Secretariat; the signing of the Strategic Minister and a representative of the Partnership Agreement on the Promotion President of Latvia. During the seminar, of Sustainable Development in Lake the Prime Minister of Sweden, Mr. Victoria; the establishment of national Goren Parson announced that his focal points for the LVDP in the Partner government had committed 1.5 billion States; and the establishment on 13 Swedish Kroners (equivalent 150 million September 2002, of the EAC Sectoral Euros) to support development activities Council on Lake Victoria; clearance for within the Lake Victoria Basin for the signing during the sixth Council of next ten years. Ministers, of the Protocol for the Sustainable Development of Lake Mr. Speaker, sir, arising from these Victoria Basin by the Sectoral Council developments, two issues were

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Monday, 12 May 2003 The East African Legislative Assembly Debates identified, which have important bearing intensive investments required. Hence on the sustainable management of the the need to co-operate with the Lake Victoria Basin, specifically the development partners for critical input funding of the LVDP and the into the regional integration programme. management of the catchments area of the Lake. The present funding Whereas the core budget of the arrangement for the LVDP is weak and Community is entirely funded by the heavily reliant on foreign support. As Partner States themselves, regional you know, projects are short-lived, and projects and programmes are funded often there is no continuity. mainly through external sources in the form of grants. In this regard, the EAC recognises that the large resource Community continued to strengthen its users and beneficiaries generate relations with development partners and substantial revenue from the Basin. other regional organisations. Sustainability of funding for the programme could be realized from this Among the contacts made were those category of users in a strategy to with African Development Bank, essentially secure independent funding European Union, Commonwealth of the LVDP. This would, among Secretariat, India, UK, Finland, France, others, put the management of the Germany, Norway, Denmark, Sweden, programme firmly under the sovereign World Bank, COMESA, United Nations control of the EAC Partner States. and its Agencies (ILO, UNDP, UNIDO, UNESCO, ICAO, FAO, WTO, Secondly, it is important to realize that UNCTAD, UNECA and UNIFEM), the catchments area of Lake Victoria World Conservation Union, includes Rwanda and Burundi, and Organization of African Unity/African inevitably the lake is impacted by the Union, World Wildlife Fund, SADC, activities in these two countries. The IGAD, and IOC. Council has directed that a memorandum of understanding be developed with the During this period, major commitments two countries with respect to the Lake were made with the development Victoria Basin, and similarly, the EAC partners in, among others, the following Partner States should participate and activities: Operationalisation of the negotiate as a bloc in the Nile Basin Strategic Partnership Agreement on the Initiative. promotion of sustainable development in Lake Victoria with the governments of Development Partnership Norway, Sweden and France, and the East African Development Bank and the Mr. Speaker, sir, it is a well recognised World Bank; launching of the study on fact that regional integration and the EAC Private Sector Development development in East Africa will require Strategy with a World Bank grant of the mobilization of vast resources, both USD 360,000; launching of projects within and outside the region. Despite its under the 2001 EAC-Finland Co- enormous potential, the region alone operation Agreement whereby Finland is cannot raise effective levels of resources providing Finnish Marka 3.0 million to meet the very huge and highly capital- (equivalent US $ 455,860) in support of

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EAC projects and programmes for the realised continued support to the East period 2001 – 2003; operationalisation African Road Network Project. of the project on Safety of Navigation on Lake Victoria with a grant from the Outreach Programme Government of France; implementation of the East African Civil Aviation Safety Mr Speaker, sir, as part of a pro-active Project with funding from the European strategy to scale up the regional Investment Bank; launching of the integration effort, the Secretariat feasibility study on the Arusha- undertook consultative missions to the Namanga-Athi River Road Project with capitals of the Partner States in mid a US $.1.2 million grant from the August 2002 to brief the Heads of State African Development Bank; completion on particularly the progress in the in June 2002, of Phase I of the project on formulation of the Customs Union the Establishment of the East African Protocol and the activities in the Lake Statistics Database for which the Victoria Basin. European Union extended technical assistance and funding to the tune of During the consultations, the Secretariat Euro 290,170. put forward suggestions and other justifications with regard to the critical The Council of ministers has approved issues on: the final report and established a Committee on Statistics and information i. Adoption of common Exchange; the successful holding of the external tariffs; East African Petroleum Conference (EAPC'03) which was held in Nairobi ii. Phased elimination of from 5 to 7 March 2003, which was external tariff and other funded by oil companies as well as charges of equivalent effect; through registration fees; pledge by the United Nations Development Fund for iii. The need for EAC to move Women to support the project of faster in the process of Institutional Strengthening and establishment of a Customs Mainstreaming Gender Perspectives in Union to enable achievement the EAC to the tune of $ 45,000; of the benefits of regional USAID-REDSO support for capacity integration. This would also building involving supply of IT ensure that EAC is not left equipment to the EAC Secretariat; behind by other regional contribution of Euro 2.25 million by the organisations or the EAC government of Germany to the East Customs Union is rendered African Business Council through EAC irrelevant in the event, for for support of regional business instance, that SADC and organizations in East Africa; and, COMESA established their holding of the successful EAC Roads' Customs Union first; and Development Partners Consultative Meeting in Arusha from 29-30 April iv. Appreciation of the reality of 2003, which was well-attended and globalisation and the demands of the changing

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world trading system, where establish effective mechanism for wide particularly the WTO and EU dissemination of information about the requirements favour only Community to the people of East Africa. large markets and liberalized To this extent, the Secretariat organised economies. elaborate publicity in the region, in the EAC diplomatic missions abroad and The consultative missions yielded during the EAC Day celebrations in significant solutions to some of the November 2002. critical issues that could have been slowing down progress in the regional Also launched were a series of seminars integration process. During the targeted at various stakeholders. To this consultations, the Heads of State extent, a seminar for media executives in emphasised the need to place the East Africa was held in Arusha in regional integration process on a rapid October 2002, followed by seminars for course towards higher levels of Members of the Zanzibar Parliament in economic and political integration. Zanzibar, and the Tanzania National Assembly in Dodoma in January and The Secretary General undertook a February 2003 respectively. Similar mission to Rwanda in July 2002. The seminars would be held during the first Secretary General met with the President half of the year for members of the of Rwanda and senior officials of the National Assemblies of Kenya and government. Their discussion centred Uganda. The outreach activities have on the admission of Rwanda and already led to increased and better Burundi into the East African coverage of EAC in the region's media, Community. among other positive outcomes.

The President of Rwanda appreciated Institutional Development EAC’s position, stating that he looked forward to Rwanda’s admission at the Mr Speaker, sir, the completion of the appropriate time. He also expressed process of putting in place the satisfaction at the ongoing co-operation institutions and organs of the activities between the EAC and Rwanda Community was completed with the in, among other areas, infrastructure and inauguration of the East African energy development; the Lake Victoria Legislative Assembly and the East Development Programme; social and African Court of Justice on 30 cultural activities, as well as trade and November 2001. investments. Other Activities in Institutional Due to unavoidable circumstances, the Development and Capacity Building mission to Burundi could not be in the Community undertaken in the period under review, and will be undertaken in due course. Among other activities, staff for the two new organs of the Community, that is, During its fourth meeting on 13 the East African Legislative Assembly September 2002, the Council of and the East African Court of Justice Ministers directed the Secretariat to were recruited, and the EAC Secretariat

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Monday, 12 May 2003 The East African Legislative Assembly Debates was strengthened with the recruitment of directives, request for reallocation could over 20 additional professional and not be avoided. support staff. Reallocations for the Financial Year In July 2001, the Government of the 2002/2003 United Republic of Tanzania donated a 9.85 acres plot of land in the Arusha Reallocation is requested mainly in the Municipality for the construction of the following areas: permanent headquarters of the East African Community. Consultations on a. Secretariat how to raise resources, both externally i. Summit/Inauguration/EAC and internally, are ongoing. In October Day: Necessitated mainly by 2003, the Secretary General undertook a observing and celebrating mission to Germany and the German EAC Day, whose expenses Government committed itself to assist in had not been budgeted for in financing the study on the development the Financial Year 2002/03. of the EAC Headquarters. He also got Since this expenditure has promises for possible partial funding of already been incurred, a the construction costs of the retrospective reallocation headquarters. amounting to US Dollars 29,310 is requested to be During the Second Extraordinary availed from the accumulated Meeting of the Council, the Secretary fund. General made a representation to Council on the situation regarding the ii. Overtime expenses: An efficient and effective management of additional amount of US the EAC meetings and other tripartite Dollars 1,410 is requested to negotiations. The Secretariat appealed cater for overtime for general for the need to hold the meetings as staff. regularly as scheduled, as well as ensuring appropriate levels and quality iii. Telephone/Fax: An additional of representation. There has been amount of US Dollars 14,190 notable improvement in these respects is requested to pay for since the appeal was made. telephone bills to be incurred up to the end of June 2003. Budget Performance in the Financial Year 2002/2003 iv. Travel and subsistence expenses: need to be It is expected that expenditure for the increased by US Dollars Financial Year 2002/2003 will be kept 37,300 to facilitate within budgetary limits. However, on attendance to meetings, account, mainly, of two factors, that is, sourcing funds for projects the increase in the number of staff and etc. the growth in programmed activities as well as activities not budgeted for but This reallocation requested does not call which arose as a result of Council for any additional funds but can be

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Monday, 12 May 2003 The East African Legislative Assembly Debates availed from within the budget for the special skills in order to financial year 2002/2003. discharge their particular obligation. The Judges need The following budget lines can to be re-oriented to contribute to this reallocation: arbitration skills, Kiswahili language, and computer i. Insurance US $ knowledge and to regional 2,000 court affairs. During the ii. Rent, water, electricity US $ financial year 2002/2003, 13,600 there was no budget line for iii. External hire of vehicles US $ training of Judges, hence the 1,000 need for reallocation iv. Maintenance and Repairs US $ amounting to US Dollars 6,260 4,250. v. Office expenses US $ 3,640 vi. Entertainment US $ 5,000 iii. Travel and subsistence vii. Council Meetings US $ 18,200 budget line needs to be viii. Clearing and forwarding US beefed up to the tune of US $3,000 Dollars 25,750 to cater for ix. Legal fees US $ 200 the important travels that were undertaken, and which b. Court of Justice impacted on the travel budget of Judges. The Court of Justice is requesting for reallocation within the following budget iv. This reallocation requested lines: does not call for any additional funds, but can be i. Overtime expenses totalling availed from within the US Dollars 2,000 since the budget for the financial year amount provided in the 2002/2003. Financial Year 2002/2003 is inadequate to cater for the The following budget lines can overtime expenses for contribute to this reallocation: General Staff. i. Insurance - US $ 1,000. ii. The Court has used this transition period to conduct ii. Rent, water, electricity - workshops, being part of the USD 20,700 capacity building programmed for the Judges iii. Stationery and printing and the Court staff. East USD 5,070 African Court of Justice is a new Court in the regional iv. Clearing and forwarding legal system and has different USD 1,000 procedures, which require the Judges to acquire and possess v. Entertainment USD1,730

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status of Partner States’ contribution is vi. Office expenses USD 1,000 as indicated under Annex II.

vii. External hire of vehicles S $ 500 Budget Estimates for the Financial Year 2003/2004 viii. Postage US $1,000 Mr Speaker, sir, the Budget Estimates for the Financial Year 2003/4 are based on the need to consolidate and intensify regional programmes leading to and in c. Legislative Assembly the implementation of the Protocol on the Customs Union that is due to be The Legislative Assembly is requesting concluded in November 2003. for reallocation in its travel and subsistence votes to the tune of US Notwithstanding the above, Dollars 13,000 to cater for travel implementation activities will only expenses for staff that accompany commence after ratification of the Members during their outreach Protocol by the respective Partner States. programmes. Likewise, this reallocation This will involve setting up of legal, requested for does not call for any institutional and administrative additional funds but can be availed from structures for the Customs Union for within the budget for the financial year which a study was commissioned and is 2002/2003. to be completed by the end of June 2003. The following budget lines can contribute to this reallocation: Mr Speaker, sir, it is also planned to carry out a number of other macro level i. Stationery and printing – activities which are enumerated below: USD 10,000 ii. Insurance – USD 660 1. Strategic Plan on the Standards, iii. Clearing and forwarding – Quality Assurance, Meteorology USD 2,000 and Testing Protocol iv. Office expenses - USD 340 Implementation of the Strategic Plan on In keeping with Article 132 of the Standards, Quality Assurance, Treaty, I wish to present, for your Meteorology and Testing Protocol will consideration and approval, the commence in the Financial Year reallocation schedule at Annex I. 2003/04 with funding from the government of Germany, which has I wish to commend Partner States in agreed to provide support at a level yet their efforts towards settling their to be determined. contributions for the Financial Year 2002/2003 as compared to previous 2. EAC Industrial Development years. As at 30 April 2003, 81% of the Strategy contributions had been remitted. The

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The Strategy for EAC Industrial and implemented in the Financial Year Development is to be adopted by the 2003/04. Council of Ministers at their next meeting scheduled for 26-29th May 8. Tourism Marketing Strategy 2003. Once adopted, implementation will commence in the Financial Year An overall Marketing Strategy and Plan 2003/04. for Tourism and Wildlife Management will be finalised and implemented in the 3. EAC Private Sector Financial Year 2003/04. Development Strategy 9. Finance and Administration The Strategy has been developed and is A team of eminent persons has been due for consideration by the Council of conducting a study on the organizational Ministers at their next meeting. Once structure and the terms and conditions of adopted, it is planned to commence service for the East African Community. implementation in the Financial Year The team has now handed-over their 2003/04. final report which will subsequently be presented for consideration by the 4. EAC Competition Policy Council of Ministers during the Financial Year 2003/04. A Bill to operationalise the EAC Competition Policy has been drafted and Mr Speaker, sir, a comparison of the will soon be tabled before this August expenditure estimates for the Financial House for consideration. Year 2002/2003 and 2003/2004, excluding development partner funds is 5. East African Power Master Plan given in Annex III to this statement.

The Secretariat has secured US$ 749,993 Conclusion from SIDA, and implementation of the Study on the East African Power Master Mr Speaker, sir, having considered the Plan will commence in the Financial policy initiatives and activities that I Year 2003/04. have enumerated above, and taking account of the expanded mandate of the 6. East African Statistics Data Base Community in the implementation of the Phase II EAC Development Strategy 2001-2005, I beg to move that this August Assembly A project proposal for the East African approves the projected revenue for the Statistics Data Base Phase II will be East African Community during the developed over a 36-months period at an Financial Year 2003/04 amounting to estimated cost of Euros 1.8 million. US Dollars 8,482,269, expected to be financed by equal contributions from 7. EAC Agriculture and Rural Partner States totalling US Dollars Development Strategy 6,398,379; contributions from Development Partners amounting to US The EAC Agriculture and Rural Dollars 2,057,690; Sale of goods and Development Strategy is to be concluded

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Monday, 12 May 2003 The East African Legislative Assembly Debates services and miscellaneous income budget estimates of the East African amounting to US Dollars 26,200. Community. But before I continue, I must be excused if I act in violation of Approval is further being sought for the the Rules of Procedure because I am yet Expenditure Estimates of US Dollars to see a copy, and that I think is my own 8,482,269 broken down as follows: omission. But I suppose I would be excused if I digressed a little bit and said (i) Allocation to the East that I am delighted to be present at this African Community forum. Indeed it is a singular honour, Secretariat of US Dollars and I would want to take this 5,543,766 in respect of opportunity to pay tribute to my which each Partner predecessor, the Hon. Nicholas Biwott, State’s contribution will whom I am sure played a significant role be US Dollars 1,153,292; in enhancing the programme of this Development Partners’ Assembly – (Applause). contribution will be US Dollars 2,057,690 and the I do recall the particular attachment he balance of US Dollars had to the Assembly, and he did in fact 26,200 will be financed take time to brief me, particularly on the through miscellaneous fairly sensitive issue of the allowances of income and sale of goods the honourable Members of this and services. Assembly - (Applause). I am happy to see that an attempt has been made to (ii) Allocation to the East redress the situation. African Court of Justice of US Dollars 638,835 of Indeed, honourable Members will see which each Partner State that the contribution by Partner States is expected to contribute has moved from what it used to be, to US Dollars 212,945. U.S Dollars 766,000 in the next financial year. I know there is also a caveat (iii) Allocation to the East because the Summit has to try and African Legislative address that situation. I say that in tribute Assembly of US Dollars to my predecessor. 2,299,669 in respect of which each Partner Mr Speaker, sir, I also feel particularly State’s contribution will honoured because East Africa has come be US Dollars 766,556 a long way. After the break-up in 1977, a historical mistake that we committed as Mr Speaker, Sir, I beg to move. East Africans, we were able, so many (Applause) years after, to begin to pick the pieces. I was privileged to have been the first Mr Stephen Kalonzo Musyoka chairperson of the ministerial committee (Member of Council of Ministers dealing with the East African Co- (Kenya) (Ex- Officio): Thank you, Mr operation - (Applause). Speaker, sir. I beg to second that very clearly elaborated proposal on the

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Monday, 12 May 2003 The East African Legislative Assembly Debates

You see, we have to go back to the because - even as I was coming to attend drawing board. It was while we were the Development Partners Consultative doing the re-drawing that I was charged Meeting on the East African Roads with that responsibility. It is interesting Project, we took a police helicopter. We how history repeats itself. I am happy to were not allowed to land at the Arusha be here, and I want to pay tribute to my Airport; we were actually diverted mid- friend and colleague, the Hon. James air to Kilimanjaro Airport, and even Wapakhabulo. When I find difficulty in after landing there, we were not allowed pronouncing his name, I just call him to take off in the same helicopter to “Wapa”. He has done well. At some come back to Arusha until we had to stage I thought that if he continued he make some high level intervention. would need another glass of water. He These were ministers of the Community has really represented the thought of the coming to attend a crucial forum! I was Council of Ministers. in the company of a soul mate called the Hon. Raila Odinga, the Minister for May I also thank the Chair for the kind Public Works, Roads and Housing. True words he said about me? Unfortunately, to Raila, he could not hold it, and he was I could not hear all of it because I was able to lord it off to Hon. Jakaya seated ion the Speaker’s Gallery, and I Kikwete, who is cleverly not at this think there was some little problem with Assembly this morning - (Laughter). the acoustics. But I think you ended up by saying I should be sought and I am saying this because we do need to brought before you. I want to thank you move with speed – (Applause). At least and sincerely say that I will live true to by now we had hoped that we would be the oath that has just been administered where we left it. East Africans do clearly to me, in discharging the responsibilities remember those days when in fact there of this Assembly. were even specifically designated ministers dealing with matters of the Mr Speaker, sir, East Africans are Community - (Applause). But now, clearly looking forward to a situation even that idea was not even caught in the where they can begin to see some Treaty, and since I have sworn to be tangible benefits of the new Community. faithful to the Treaty establishing the When we imagine that the European Community, I might just stop there Union was in the first instance fashioned because I think matters that will require along the lines of the defunct East amendment of the Treaty would clearly African Community as it was then, we be left to be within the province of the begin to realise that truly we have lost Summit of Heads of State. valuable time. Mr Speaker, sir, how, for instance, is it I know that hon. James Wapakhabulo that so many years after we have come was able to talk about the intention by some way, we are not even able to talk - East Africans to experience the free for instance, we have been talking about movement of goods and services, but as the budget of the East African Court of we speak, this is not one of those Justice. One would imagine that objectives that we can, as East Africans, members of the legal profession would say we have been able to realise. This is by now be looking at a new fashion of

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Monday, 12 May 2003 The East African Legislative Assembly Debates the East African Law Report, and yet I think the word is trade, and I know that that seems to be miles away - we will be meeting later at the end of (Applause)! this month to try and look at industrial development for the region. I know that I think we need to begin to move very East Africans are even thinking ahead of fast and at least get to where we left the us. They have clearly been elaborating Community before it collapsed. and imagining how an East African Federation would look like. But before I know that honourable Members will we even get to that, we need to be able have time to read through this very to get programmes that work. impressive document. We took time as Council of Ministers to look at the I also want to congratulate the Members issues. I want to congratulate the because I think with the renewed focus Secretariat for trying. In fact, at some on even that crucial issue I did mention stage, you will realise that they are very of the allowances, they will also be able thin. to cut down from what they had hoped would be a 120-days’ sitting to perhaps The Secretary General was mourning now 60 days in order to be able to live openly before the Council saying he within the budgetary proposals. But on could not even cope with some of the the whole, I am indeed happy to note - I programmes that are before the know that sounds a little bit unpopular - Secretariat because he is very thin on the (Laughter) - but it is a matter that I am ground. Then I remembered that it was sure we are able to look at. I am just perhaps a mistake that we committed trying to reflect the thinking of the when we were reconstituting because Council of Ministers, but the whole obviously we had to tread carefully. matter is open to debate - (Applause).

The emphasis then was on a lean Since I am making my maiden speech, I Secretariat, and I think this Secretariat think I better stop right there, and I am has indeed been properly lean. But as we indeed pleased to second this Motion - go into the future as East Africans, I (Applause). would want to urge the Partner States to commit more resources because the The Speaker: Honourable Members, I world is moving in that direction. intend to adjourn this House, but before I do that, I want to extend to all Members, I know that we have even been talking staff, invited guests and the media an about East African Passports. Truly, East invitation to a cock-tail party in honour Africans have not been able to clearly of Hon. Kalonzo Musyoka. This will be identify themselves with what is held on the 7th Floor, in the Lobby of happening at Arusha. Since this is the Mbayuwayu Hall on Ngorongoro Wing. capital of East Africa, we look forward I am sure you know the geography of the to the day when East Africans would just AICC Complex. I am told that the drive through Namanga, Taveta or organisers were expecting us to break at wherever unimpeded in their movements 11.00 a.m. but I believe we can be there and trying to do trade. at 10.45 a.m. for the party, which is organised by the Speaker in honour of

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Monday, 12 May 2003 The East African Legislative Assembly Debates

Hon. Kalonzo Musyoka, who has given to the Summit with a specific a wonderful maiden speech. We are recommendation. He ought to have told inspired and we look forward to working us that the Council has taken a position, with the honourable minister. and be bold enough to tell us what that decision is. If the Council does not take ADJOURNMENT a definite position, they may get to the Summit and then we will come to that The Speaker: Honourable Members, old story where they cannot harmonise that concludes the business on the Order or synchronise it. Paper this morning. The House is therefore suspended until 4.00 p.m. this If the Council of Ministers has taken a afternoon. position, that is well and good, but we would like to know what they are [The House was suspended at 10.40 a.m. recommending. If my recollection is - I and resumed at 4.00p.m.] think the issue was between 20 per cent and 25 per cent. The pros and cons of (On resumption_) each percentage were well outlined. So, I urge them to take a position. If some of (The Speaker, Hon. Abdulrahman O. these percentages have been agreed upon Kinana, in the chair) in the COMESA region, I do not understand why we cannot borrow the (General Debate on the Budget Speech) same idea from there.

Mr Med Kaggwa (Uganda): Mr Mr Speaker, Sir, I want to register my Speaker, sir, I would like to thank the disappointment with regard to the draft honourable Chairman of the Council for Customs Union Protocol. This Assembly his presentation. As the chairman was has not had the benefit of looking at presenting his Budget Speech, I noted a what is contained in that draft Protocol! few things, which I am happy with, and If I understand the Treaty well, once the others, which I am not happy with. The Protocol has been signed, then there will first one is with regard to the Common be nothing we can do. I think it is proper External Tariff (CET). and fitting that if that is the position, this House be given an opportunity to look at I want to reiterate what was said once the Protocol, and then we have our input. here by one of our colleagues, that the issue of the Customs Union has been left Mr Speaker, Sir, if we are to build this to the technical people and yet we Community, the Assembly, the appreciate that the Customs Union will Secretariat and the Court should work in be the entry point to the East African together. Some organs should not treat integration process. these documents as secret, and we are not meant to see. It would be absurd for I was not happy when I heard the me to make a law over issues to which I Chairman of the Council say the issue of never had any input. I urge the Council the Customs Union is now before the to ensure that the Customs Union Summit. I expected the Chairman to say Protocol is signed as scheduled. East that this matter is going to be forwarded Africans are anxious to see the Customs

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Monday, 12 May 2003 The East African Legislative Assembly Debates

Union signed. It will be a big The Chairman of the Council should disappointment if that date is not respond to that in his reply. adhered to. Mr Speaker, Sir, I think it is high time Mr Speaker, Sir, I want to express my that the Council persuaded the Summit gratitude to the minister because this that the people of East Africa vividly time, unlike in the previous year, the remember the power, which the then Council has shown the monies received East African Court of Justice had. They from development partners. I think this are now disappointed that the present is an appropriate answer because last EACJ is limiting itself to the year when we talked about this subject, interpretation of the Treaty. In fact, the they gave inappropriate answers. I am cynical ones have gone on to say that for pleased that this time an effort has been the lifetime of this Assembly, the Court made, and I hope this will continue to be may never have any case to consider. the trend. They keep asking why we should create a court, which cannot function? On the issue of publicity, which the Chairman talked about, I think I have When East Africans feel aggrieved by some reservations. Whereas the seminars decisions in their own countries, they that have been organised by Assemblies should be in a position to resort to the of Partners States are good, I do not East African Court of Justice! It is high think they address the issues of the time that the Council considered Community properly. It is this persuading the Summit to expand the Assembly, which should publicise the powers and jurisdiction of the EACJ. East African Community. This will be in line with Article 27(2) of the Treaty, and the sooner that is done, We are the peoples’ representatives and the better for the three Partner States. they keep asking us about the Community and we are hard put to tell On the Budget, I am wondering whether them that we do not have the funds to do the Budget as presented to us this the publicity. On this particular aspect, I morning is a token figure or it is a urge the Council of Ministers to Budget, which is meant to move forward reconsider their thinking and enable the the Community. I think this Budget is Assembly to complement that aspect of not in harmony with what the three publicity. Heads of State of the Partner States have repeatedly told this House. Mr Speaker, Sir, the Chairman of the Council mentioned it several times and The Heads of State from the three made a request for various re- Partner States have told us that they allocations. But where were these want to see the Community prosper. allocations from? Does it mean that With this sort of Budget, I do not think those areas, which were supposed to be within the next twenty years, the dreams financed by that money, were not of the people of East Africa will be covered? If so, why? That money was achieved. Maybe, the Treaty never budgeted for to finance certain things. anticipated these activities. Now that the Council of Ministers has realised that

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Monday, 12 May 2003 The East African Legislative Assembly Debates what is on the ground demands much House, which Rules, among other things, more than what is provided for, I think it provided for 120 days for the Business is high time a realistic budget was of the Assembly, and also provided for provided. morning and afternoon sittings with the full understanding that since we are the This kind of Budget brings the House pioneers of this resurrected Community, into direct confrontation with the we needed to put in a lot of effort if we Secretariat. The House will believe that have to have the Community take off. the Secretariat is not doing its duty but it But to my surprise and disappointment, has its hands tied! The staffing is when I looked at the figures this inadequate, resources are not there, so a morning, I noted that the Council in its situation should not be created where the wisdom is recommending to this August two organs of the Community should House that we sit for 60 days. And I come into confrontation for reasons, have a technical problem since I am also which are not theirs, and for reasons, a lawyer. Are we not breaching the which can be addressed and rectified. Rules we adopted in this House? I want an explanation from the Chairman of the Mr Speaker, Sir, as I said earlier on, the Council about that. three Heads of State, including the new President of Kenya, have told this I must also hasten to add that there is a Assembly how they wanted the false impression created that this federation yesterday, and I have always Assembly does not have work. I do not talked with my colleagues - Charles de know where that illusion comes from. I Gaulle once said “politicians get am sure that there is plenty of work to be surprised when people believe what they done and there will even be more work say.” to be done when the CU comes into operation. Sometimes I recall those words and compare them to what we are always Mr Speaker, Sir, I call upon the Council told by the Heads of State. Whenever we of Ministers to impress it upon the meet them, they tell us that East Africans Summit that the people of East Africa look up to us to steer this Community are watching keenly and they are being forward, and how it was a mistake to told how efforts are being made to have have allowed the other Community to the Community revived. But there is no collapse in 1977. But how are we going way it will take off; it will abort if the to make it move when the same necessary funding is not provided for. governments are not funding the Community, and the Secretariat has no Finally, when the Treaty was written, staff? I hear that almost all of them are they never anticipated that there would walking on foot because there are no be a lot of activity. Accordingly, the vehicles! How could that happen? ministers responsible for regional co- operation were assigned the duty of Mr Speaker, Sir, I am a Member of the attending to business here. I think it is Standing Committee on Legal, Rules and high time that the Treaty is looked into Procedure, which dealt with the Rules to try and create people who will not be which we adopted recently in this too busy to attend the sittings of this

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Monday, 12 May 2003 The East African Legislative Assembly Debates

Assembly. If that does not happen, we discussed this issue and we agreed to do not have any direction to follow. It is discuss the Budget because Parliament the duty of the Executive to give was new. But during this year, we send guidance and it is the duty of this our request early enough that the Legislature to make the necessary laws. Standing Committee on General Purposes, which is supposed to carry out With those remarks, I reserve my that function on behalf of the Assembly, support to this Budget - (Applause). should be allowed to review the Budget, but that did not happen. I understand, from the grapevine that we were not able to do so because of budgetary Maj. Gen. Mugisha Muntu (Uganda): constraints. Mr Speaker, Sir, let me thank the Chairman of the Council for the I would like to know who undertakes the presentation of his Budget Speech. I also budgetary function of the Community. thank all those who have been involved When we look at the way the three in putting together this Budget. I also organs of the Community are facilitated want to take this opportunity to welcome in terms of the Budget, it is wanting! As and appreciate the remarks made by the hon. Med Kaggwa said, we met with the Minister for Foreign Affairs of Kenya in former President of Kenya, His his maiden speech. Excellency President Daniel arap Moi before he retired, we also met with the Mr Speaker, Sir, this Budget should not current Presidents of Kenya, Uganda and have come here in the first place before Tanzania and they all indicated that they this House performed the pre-budget want the East African Community to review function. This is the second time move fast and implement the projects that this function has not been fulfilled. I they are working on, and to hasten am not sure whether it is not a deliberate whatever activities they are involved in. oversight or a total disregard of the But what they have said and what is in provisions of the Treaty. the Budget do not tally. The two positions are in conflict! Is there a One of the problems we have on the misunderstanding of what is happening issues of governance in Africa is that we on the ground? What is the problem? do not observe the laws that we write. The regional bloc we are trying to When you look at the staffing of the nurture will culminate into a political Secretariat as provided for in the federation, and we need to observe the Consolidated Budget Summary, you will principles of good governance early really sympathise with them. For enough. We should begin by observing instance, there is one officer in every the laws that we have come up with! department. How are they going to oversee the projects that are in place? One of the fundamental functions of Secondly, these are the same staffs that Parliaments all over the world is are supposed to provide backup for the oversight. How are we going to oversee Assembly. When they are working on what we have not reviewed according to projects and we require them to give us the laws established? Last year we briefs, they will not be available! It is

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Monday, 12 May 2003 The East African Legislative Assembly Debates not humanly possible to do what is avenue to solve the domestic problems beyond your capacity as an individual. we are encountering. What do we stand You cannot be in two places at the same to gain as a block as opposed to each time. No wonder I have heard that there individual country trying to attract direct have been a number of breakdowns of foreign investment? staff in the Community simply because they have worked beyond what they can All the leaders we have met have told us bear as human beings! This is a matter, that they would like to see the which the ministers should look at. If integration process succeed because they that is true, then it is tantamount to want a larger market for East Africa. human abuse! That is one of the biggest advantages we are going to reap. There are unnecessary I do not think the three governments delays in the implementation of EAC should look at the human resource we projects because of budgetary constraints have as a cost! They should look at it as and divided attention. Some of the human resource that will bring useful technical officers who come to make results to this Community. The mind set decisions for EAC have got to handle of those who handle this Budget look at some national programmes back home. the human resource that we have as a So, I request that the Council of cost but not as an investment. Ministers look at these issues, which are of concern to us. This brings me to the issue of how we look at the East African Community? Is Mr Speaker, Sir, the issue of staffing it a strategic investment or it is a mere must be addressed urgently. The political project? We need a decision to Community cannot function efficiently be taken on that so that we are all clear with such a lean staff. If everything goes about it. If there is a vision, let us all as planned, by November this year, the share it so that we know how to handle Customs Union Protocol is going to be it. If it is a strategic economic signed. Once it is operational, the investment, then it will also determine Customs Union is going to generate a lot how we relate to it. But if we look at the of work. Who will handle all the work present global situation and the way the that will be generated? The Chairman of global forces are operating and we the Council should answer these issues, looked at the East African Community when he comes to reply. as an economic investment, then we would really be wasting the time of the The feeling we get is that this Budget people of East Africa. has been more or less relegated to the technical staff in the Partner States It is understandable that we are because right from the beginning, they developing countries and there is no took the position that the Secretariat doubt about that. Each country is trying must be lean. Most of them come from to grapple with a lot of domestic the Ministries of Finance from their problems. The leadership of the three home governments. It is not surprising countries need to look at the regional that they have taken the position that integration process as the only strategic everything must be cut down to the bone investment that is going to create an

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Monday, 12 May 2003 The East African Legislative Assembly Debates regardless of whether the Community agenda. On the same page, the Council functions efficiently or not. proceeded to identify various priorities. One of them is the Customs Union So, we would like to request the Council Protocol, which is going to be signed at of Ministers to reverse that trend and the end of the year. change the mindset of the people who deal with budgets to know that this is an Mr Speaker, Sir, as I have said, I feel at investment and for the Summit to walk home with these basic assumptions the talk! They should not say one thing underlying the Budget for 2003/2004, and do the opposite. except for the fact that they hardly tally With those remarks, I beg to move that with the Budget itself. If we agree that the Council of Ministers reconsider this there is intensification of the regional Budget. integration process, and we agree that the people’s expectations are very high Dr. Harrison Mwakyembe and we even have priority areas, some of (Tanzania): Mr Speaker, sir, I listened which are maturing very soon such as very carefully and with keen interest to the Customs Union, nobody can the Budget Speech by the honourable understand us when we are reluctant to Chairman of the Council, and I commit even 0.1 per cent of our national wholeheartedly agree with him on all the budgets to the regional integration basic assumptions underlying this efforts! Budget. I also feel that nobody can understand us If you look at page 2 of the speech, for when we block the Assembly from example, the basic assumption is that the working by starving the Assembly of Budget estimates are presented against a funds and by cutting down the number background of intensification of the of its working days in total disregard of regional integration process in East the Rules of the House! Africa. That is a fact. Another assumption is outlined on the same page, Mr Speaker, Sir, I am reminded of what paragraph 4 that the people’s President Benjamin William Mkapa told expectations remain high for faster us when we met in Lake Manyara in progress towards eased and increased December 2001. If the Chair allows me, movement of people, goods and services I will just read one paragraph. He said: across borders, development of “At this point I am driven to repeat the infrastructure, increased trade and challenge I met in Kampala on 19 investment throughout the region, levels August 2001 during the Global 2001 of productivity and exports. SMART Partnerships Meeting. I then called for the speeding-up of the Mr Speaker, Sir, page 3 of the speech implementation of the East African talks of the need felt by the Council to Strategy on regional co-operation, in streamline their efforts towards tangible particular, the accelerated negations for and expedited achievement. But the most trade and investment Protocols, so as to important thing here is taking into give the new Assembly and the new account the multiplicity of the issues that Court of Justice enough work to do.” are finding their place on the regional

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Monday, 12 May 2003 The East African Legislative Assembly Debates

Now, the Assembly has enough work taxation of the poor people of East but we do not see any support for the Africa. Assembly and the Court to do that work. In the final analysis, I am forced to say Mr Speaker, Sir, last year’s Budget was that the proposed Budget is not in any USD2 million, and each country was way demand or priority driven. Largely, supposed to remit about USD1.7 million. it is pegged on the Partner State’s And that is a lot of money to the poor financial convenience. taxpayers of East Africa. The only way to show gratitude to the people of East Mr Speaker, Sir, I have seen that we are Africa for the sacrifices they make, and supposed to discuss the Budget today to make them contribute further to the and tomorrow. Apart from the fact that cause of East Africa is the seriousness it we have had no time to go through the deserves. I do not see much seriousness budgetary proposals critically, the time in the budgetary exercise if we are to allotted is too short for us to do so. I feel spend about three hours reading and that we are just being rushed through. debating the Budget proposals.

Let me emphasise the point that a Mr Speaker, Sir, on the issue of budgetary process is not only one of the reorienting our judges to the Kiswahili key functions of this House, but I also language, I would like to say this is a believe that it is the basis on which the very progressive step, although I would people of East Africa can also judge us hesitate to entrust a judge who has on the way we handle their resources, undergone a crash programme in which are committed to the East African Kiswahili to hear a case in Kiswahili. I cause. We have repeatedly said that our also propose that we should have a role as an organ of the Community is simultaneous translation of debates in that of facilitation. That facilitation is Kiswahili so that we give Kiswahili its based on the EAC Development Strategy place within the organs of the East 2001-2005, which embraces people- African Community. driven, political, socio-economic development of the region. Mr Speaker, Sir, I noted the allocation of US $ 4,250 for capacity building for our The facilitation exercise we are engaged judges. I think this hardly enough, even in is in no way easy. I believe it is for one judge in a year! What lies in challenging and demanding because of store for our judges is enormous! I am two reasons. Our facilitation role saying this because they will be required requires the mobilisation of massive to operationalise the Customs Union and resources from within the Partner States all its laws. To budget that amount of and outside the countries, in line with the money and expect them to function provisions of Article 132(4) of the normally is expecting too much from Treaty. Up to now, most of the money them. we require, about 80 per cent, has been remitted by the Partner States. That is With these remarks, I reserve my good news to us but most of the funds support for the Budget Speech. we use in the Community comes from

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Monday, 12 May 2003 The East African Legislative Assembly Debates

Mr Yonasani Kanyomozi (Uganda): those figures is because of the shift when Our impact in the world trade is 0.0 per Iraq was still under Saddam. There was cent or even less. In fact our trade figure emphasis on African oil and interests in the European Union for Tanzania is and the figures will show you that. I am 0.001 and 0.002 for Uganda! The requesting our ministers that we have European Union can even afford to this Customs Union finalised in June so forget that we exist. So, what do we need that it starts with the new financial year, to do? The solution has to come from and we move on. within. If the Summit of the Heads of State is meeting in June, the ministers Then, there is the issue of figures. The responsible for regional co-operation Ministers have not told us and since the should ensure that the Customs Union is documents are kept away from us, we do passed, and then send it down to the East not know. But we have heard from the African Legislative Assembly, if there is corridors that the difference is between money for it to sit, let them pass it and it 20% and 25%. Is that the issue? In fact, is operationalised before 30th November. we need to protect our own local That deadline was just a time frame, and industries. I would have even gone to a it was not necessary that the bureaucrats higher level on the upper part. slow down because there is time. There is no time. We should have had this The Secretary-General (Mr Amanya thing many years ago. This is because Mushega)(Ex-Officio): Mr Speaker, we are in a bad state. Look at the figures. Sir, may I put it on record that it is not The little we are having is even going true that the Members of the Assembly away. Better trade begins here between have heard the differences between 20% ourselves, and then we can start and 25% in the corridors. We in the competitively trading outside. Secretariat have briefed them officially, and this is on record. I see everybody excited about AGOA: even Presidents are carrying luggage on Mr Kanyomozi: Mr Speaker, sir that is their heads to take to America. Look at it even the more reason why I am going to squarely and objectively, what is the be critical of it; if that is the figure. value added by people by joining this thing? In Uganda, there are one thousand We are moving towards the convergence girls stitching textiles brought from of tariffs and trade by the year 2008 by outside. What do we gain out of it? the World Trade Organisation (WTO), Since the companies are even from and I am sure we are aware of that. Now, outside, I do not even think we get the if we put the tariff so low, we will not be money coming in because the allowed to put it up, yet our own headquarters are outside. I am sure the industries need protection from these same might apply to our good neighbour floods of goods from outside. What is Kenya that is also a beneficiary of this the logic? We are pretending to be AGOA. mindful of the welfare of our nations. Who are we to do that when we are Look at the figures also; the percentage importing goods from outside? What has not increased substantially for Africa percentage? since it was started. The blow-up in

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Monday, 12 May 2003 The East African Legislative Assembly Debates

In fact, now we are importing manufactured goods, especially textiles. Mr Wapakhabulo: Mr Speaker, sir, is We are exporting few that are being the honourable member in order to try to stitched in Kampala and Nairobi and incite one minister against another and to instead importing used textile. They are cause disharmony in the House? called mitumba in Kiswahili. Clothes by (Laughter) the late Sir George! What I am saying is that, should the tariff be so low as to The Speaker: The Member was not in encourage dumping or high enough to any way inciting but soliciting for protect us against dumping? I want to support - (Laughter) encourage a review to emphasise that trade in our region should start here at Mr Kanyomozi: Thank you, Mr home. Speaker, Sir, for your wise ruling and guidance. I am saying that for Lake Secondly, the minister talked about Lake Victoria, let us move as a block, but let Victoria, this common asset that we have us also fulfil that which we were where fish do not recognise boundaries directed to do. I request that the two and they are not checked as we are honourable ministers who are here, plus checked at Malaba or Namanga. They the one who is absent, to work on seeing just go. I am pleased that the emphasis is how we are going to go to Mexico as a on that because one third of our block because the issues that are going population is dependent on the lake to be discussed there are very serious – basin. About 30 million of our people (Applause) are around Lake Victoria. But the area of concern that I would like to emphasise is Let us get the East African Community that, in the minister’s speech he says that accredited to this institution. Let us have negotiation on the development of the one delegation led by one of the lake is now going to be jointly done. I ministers, and the next time another one welcome that. Mr Minister, keep it up. can lead it. After all, we are doing it at But I am reminded by what has the level of the Council of Ministers to happened before. the Community, and it is working despite the limitations that we have. Let A year ago and one day, today, in the Secretariat - we have brilliant Deputy Kampala, the Summit of the Heads of Secretaries and Secretary General, who State meeting at the International have had exposure. Let them provide the Conference Centre directed the region to Secretariat for this delegation and let us negotiate as a block. It is exactly one move on as our Heads of State have year and one day, today. Has this been directed us to do, and as the minister has put into practice? No! Has it been done? already agreed for Lake Victoria - No! Is it being contemplated to be done? (Applause). No! Are we going kangunda as one? No! Are we negotiating these things as a I am encouraged and I welcome the idea block? No! So, Mr Minister, you have a that Rwanda and Burundi are being problem with your colleague there. If brought in on this issue of Lake Victoria, one year and one day has gone without but let us not stop at the Memorandum anything being done – (Interruption) - of Understanding. We would like to

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Monday, 12 May 2003 The East African Legislative Assembly Debates move a step further and bring them in. It When I cam here for my kindergarten is in our interest and also in their interest Kiswahili lessons, I had the honour to because these are our brothers and visit the Mayor of Arusha with my sisters. Let us bring them in quickly. I colleagues. He told us that if we wanted remember, in Kampala when Rwanda more land, we could have it. Have we raised this point, the answer was that we followed up on this issue? He even told wait for the Customs Union so that they us that there were enough plots for us to enter at that level. That is why I am buy. Can’t we be the American founders proposing that this July be the beginning of Washington DC who took a radius of so that in September, we bring them in. about ten miles from the centre and It will do a lot of good to have them in. made that area the capital and it has been It will even solve their own domestic expanding? Even if we are not able to problems because they will be part of a achieve what the Americans have bigger unit. They will come here as achieved, well enough. In my language, Rwandese and not as Tutsis or Hutus. we have a saying that the tail of a goat This will even stop our ministers going sweeps where it can reach - (Laughter). up and down trying to settle their problems because we would then be Let us at least take one square mile for settling them here. Their differences will our headquarters so that we build up a be treated as regional problems, for structure that will be the headquarters of example, between Iringa and Mbeya, or an East African Community, comprising between Bukoba and some other place, five or ten countries in future - or between the north and the south and (Applause). then it will be an easier thing to handle. The travelling of my friend, the I am proposing that the Secretariat in honourable minister will be lessened and conjunction with the Council of he will not suffer from jet lag any more. Ministers do approach the Tanzanian government and ask for a bigger piece of On the issue of the headquarters of the land so that we can plan for it Community, we are happy that the accordingly. It would not be correct to government of the United Republic of build the headquarters on 9.5 acres and Tanzania has given us 9.5 acres of land, then we have to shift again as the but we are looking at this community as Community expands. Let us avoid the a permanent entity. We are looking at costs of shifting. Arusha as our headquarters and, therefore, we are looking at the On the issue of funding of the headquarters of the Community for Community, I am pleased that the posterity. As the minister said, we do not Partner States have made their want to repeat the mistakes we made contributions very diligently, except that before. If that is the case, then, 9.5 acres my home country has had a bit of a will not be enough, unless we are going problem from the figures I see. We have to construct a building taller than the only contributed 60% of our towers in America, which I do not think requirement. The other countries have we should because we still have a lot of done better and I applaud them. But land - (Applause). overall, this is an improvement from last time when 90% of the total contributions

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Monday, 12 May 2003 The East African Legislative Assembly Debates had not been made. So, I want to thank percentages so that we know where we the Council of Ministers and the are going. Secretary General for this improvement. However, compared to the global I am saying this because at times they figures, these moneys are too little to demand of us some things we may not support the work we want to do. want to do. For example, when the We asked for 120 working days, we are World Bank people were here, they told given half of that. The work is us to go slow on integration, arguing that expanding but we are stagnant on the it is not needed. They told us not to rush number of days we are going to do it. the process. At the same time, the So, something must be done, and we are European Union is now nearly made up asking the Council of Ministers to look of 25 countries. Last night, they allowed at this matter. in new members. So, while they are telling us not to rush our integration, The Chairman of the Council of they, on the other hand, are running at Ministers is a former Community supersonic speed to integrate. So, our employee like me. In the defunct reliance on them should be done Community, we used to get money from cautiously. customs collections. Even if we collected 5%, we would be in a position I would not be fair to myself if I did not to budget accordingly. And that is why I touch on politics. It is nice to see the want the Customs Union in place soon. change in Kenya and that the transfer of power was done very smoothly. I want If you look at the figures, the donor to congratulate the minister who is here. funding is too much. I am not saying that I had the honour of witnessing that. The they should not chip in, but it is a Secretary General tipped me about the delicate balance for the Secretariat when trip to Nairobi and I joined the team only 40% of the total budget is donor-funded. to meet you, Sir, and to witness the glory Granted, the Community is slightly and the pride of this region to see a better than the Partner States whose change of government in such a smooth budget is funded by donors to the tune of manner - (Applause). 52%. But still, 40% is too high a figure to depend on foreign funding. This is I think Kenya has given us a good because you only need one or two of the example, following Tanzania that had big donors to default, and the whole been a good example anyway. Now it is thing will get stuck. So, we need to look left to Uganda to also change in a way at this very carefully. that is civil and civilised. I am saying this because change in Uganda has been We welcome the donations, because very difficult: Either one man changes after all they need us as much as we power to himself, hands power to need them. We are their markets and so himself and continue doing so until the they need to increase our purchasing cows come home…. So, we look power. Our relationship with them is forward to evolution and development in mutually beneficial; so let them bring the Uganda. money. Even if they brought more, but we must look at it in terms of

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As a Member of the Community, opportunity to contribute to this Motion. Uganda needs prayers. I am sure May I begin by thanking the Chairman Members will understand this, especially of the Council of Ministers, Hon. James after the trip to northern Uganda, which Wapakhabulo, for his presentation! I is captured on video. We need to get also want to take this opportunity to these things quickly settled, and we hope welcome Hon. Stephen Kalonzo that the Community will be allowed to Musyoka to our midst. I want to thank play its role. The President promised us him for his very brilliant maiden speech. that soon he would call his brothers to Pakuba and we would be invited so that I would like to begin by quoting the we can solve this problem. Chairman of the Council’s speech. On page two he says: “The budget for the Our region is now famous for settling financial year 2003/2004 is being other people’s problems: We are in presented against the background of the Rwanda, Burundi, Congo, Somalia, and intensification of the regional integration Sudan. Name it we are there! But we process in East Africa.” On the same have forgotten the biblical saying that page, he further says: “The regional you do not talk about a spec in your organisation came under increased friend’s eye before you remove the log pressure from the various stakeholders to in yours. We have a log in our eye in the demonstrate tangible achievements and form of the conflict in the North and we benefits. In particular, there were need to solve it. widespread expectations for timely establishment of the East African Finally, I would like to touch on the Customs Union, among other critical issue of our relations and membership in requirements of the regional integration different organisations. It is good we process.” He continued further on that belong to many organisations, but as the same page to say: “The expectations Customs Union is coming very soon, I remain high of faster progress towards would wish that we negotiated with eased and increased movement of SADC, COMESA and all the other people, goods and services across the organisations as a block. If you see it on borders, development of infrastructure, a funny diagram interlinking us to all increased trade and investment in the these organisations, it is going to create region, levels of productivity and problems on issues of origin when the exports.” trade is opened up as the Customs Union comes into force. I have just picked these words, but there are many other things the minister has But what is my verdict on this budget? mentioned, but all these lead to one My colleagues have said it is misgiving. thing; better lives for East Africans. If I tend to agree with them. It has good you want something good, you have to ideas but it lacks the very things to make invest in it. I think that all along the it work. On that note, I also reserve my Partner States have been shy of investing support for the Motion. in the Community. We are saying this because there is a general shortage of Mr Calist Mwatela (Kenya): Thank goodwill from the Partner States in terms you, Mr Speaker, Sir, for giving me the of financing the Community’s organs.

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Overall, therefore, we can say that the adequate amounts of money to run this East African Community is a baby who Community, just like the mother gives is starved by the mother, and is therefore the baby enough milk - (Applause). The stunted, malnourished - (Laughter). father only buys uji so that the mother can drink it and produce milk - We as the pioneer representatives of East (Laughter). Africans are saying this loud and clear because in any case, it has been said by I am only saying that it is okay to get the respective Heads of State. We need help from other people, but for our main to move fast to integrate because it is for institutions - the Secretariat, the Court of the benefit of East Africans. You cannot Justice and the Assembly, we should not integrate if the finances for this depend on donor funding. It is Community are less than a ministry’s. It unacceptable because that is an area that is even far much less, almost equal to you cannot afford to let go, just in the that of a department of a ministry in a event that the donor has decided not to Partner State. Are we serious? Hon. give you something. Of course there are Kanyomozi was being accused of other areas in which we may decide to incitement, but really, are we serious? accept some funding, but the right thing No! We are not serious. The Members of is to make sure that we fund these the East African Legislative Assembly critical areas of the Community. are very serious, but I think there is somebody somewhere who will finally A previous speaker mentioned that there be accused of sabotaging the East is need to streamline our own activities. African Community - (Applause). One fact is that we should have ministers charged with the Community matters Why do we allow bureaucrats to come only, not the ones who have many and determine the number of days that duties: Today he is in Sudan, tomorrow the Assembly is going to sit? This is in Machakos talking about Somalia, the wrong! This House has a responsibility next day he is in New York or Harvard to East Africans of ensuring that their or wherever! If at all we are serious taxes are put to good use for them. One about the Community, we need full-time of those good uses is to finance the East ministers for the community. African Community. On the issue of our own Rules, I do not On the issue of development partners, I think we have Rules just for the sake of want to make it clear to honourable having them on paper. The other day the members that there is nothing for free in Chair ordered honourable Muntu out of this world. Whenever donors give us the Chamber because he had broken a something, they also expect something Rule of this House. It was the Rule on in return. We can, therefore, rely on dress. It is common knowledge to all donors in as far as their donations, if Members that this House sits from withheld, cannot cripple us. In any Monday to Friday, both mornings and event, for a baby who is growing, the afternoons. I do not know of any best food is the mother’s milk, which Assembly that sits that heavily. We cannot be sourced from donors. I am made these rules in full consciousness of only calling for Partner States to give the fact that there is a lot of work -

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(Applause). Sometimes we even sit on not think it is impossible. The House Saturdays! Rules are clear. Let us not set a precedent where the House decides- we If I may go back to the Chairman’s do not want to take drastic measures. We speech, he has talked about a number of know the remedy can be sought. things. On page three where he is talking about the launching of the second East The Chairman of the Council of African Community Development Ministers presented the budget to this Strategy, he says, “during this period on House for consideration by the House the conclusion of the Protocol on the and not for rubberstamping. With due establishment of the East African respect to the Hon. James Wapakhabulo, Customs Union…” If the Customs we believe that between now and Union comes into place, there will be tomorrow or Friday, the remedy can be 101 legislations required to make it sought so that we do not have a conflict. work. You cannot do that in 60 days. It is not practical. It is not only that, we May I also touch on the issue of have other areas. facilitation of the members? Up to now, the honourable members here do not For example, on page 4, the minister know whether they can get vehicles duty mentioned something on Lake Victoria. free as has been mentioned. We do not He says, “the focus on Lake Victoria know why, but we believe it is possible. stems from the appreciation of the fact I am just touching on that because that the lake is undoubtedly the most everything is not straight. important shared resource of East African Partner States.” On page 5, he I also want to comment on an issue that further says, “the establishment of the was raised by Hon. Kanyomozi. If we Lake Victoria Development Programme want our economies to grow, then we Unit as a Secretariat…” Even that needs have to look at the East African market, legislation. The signing of the strategic and not an outside market. The USA, partnership agreement on the promotion Europe, China, etc. trade internally of sustainable development in Lake between each other to the tune of 95% Victoria - all these things will need this per cent. We are trying to do the Assembly to legislate. To crown it all, opposite, and it cannot work! We will our own House Rules say that the House not change the economies of our shall meet for 120 days in any calendar countries by thinking about the outside year. world. So, if that is what we want, then we need to quickly move towards our I started by referring to hon. Muntu’s integration. expulsion from the House because I wanted to make the point very clearly There is a Kiswahili saying that: that, as Members of this House, we “utavuna ulichopanda” meaning, you make Rules and we should keep to those will reap what you sow. If you invest Rules. Otherwise, what are doing? one shilling and the interest is 10%, you Definitely 60 are not 120! (Laughter) So will get ten cents. If you invest one we want a remedy to be sought for that. million shillings and the interest is 10%, How the minister is going to do it, I do you will get one hundred thousand. If the

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Monday, 12 May 2003 The East African Legislative Assembly Debates

Partner States of East Africa want good returns from this Community, then they have to invest in it and let them stop telling us that our budget has grown.

We are a new body and when you are setting up an organisation, even a business, sometimes one will need to go and borrow. Similarly, in this case, we have to spend on the Community. Let us not compare its budget with what we give to our ministries at home. Probably, we would have been comfortable if we got the budget the size of a single ministry and we would be up and running.

With those remarks, I will not, for the sake of East Africans and the Community, support this Motion. Let us have something done before we can support this budget - (Applause).

The Speaker: I think we have only about seven minutes left to the conclusion of the afternoon sitting, and I would like to suggest that we adjourn the Assembly until tomorrow morning. But before I do that, I want to announce that the House Business Committee and the honourable ministers will be meeting immediately after the adjournment.

ADJOURNMENT

The Speaker: Honourable members, it is now time for the interruption of business. The House is therefore adjourned until tomorrow at 9.00 a.m.

[The House rose at 5.45 p.m. and adjourned until Wednesday, 13 May 2003at 9.00 a.m.]

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