In the East African Legislative

EAST AFRICAN COMMUNITY ______IN THE EAST AFRICAN LEGISLATIVE ASSEMBLY (EALA) The Official Report of the Proceedings of the East African Legislative Assembly 152nd Sitting - Third Assembly, Fifth Session – Third Meeting Tuesday, 22 November 2016 The East African Legislative Assembly met at 2:30 p.m. in the Mini Chamber, County Hall, Parliament of Kenya in Nairobi

PRAYER (The Speaker, Mr. Daniel Fred Kidega, in the Chair) (The Assembly was called to order at 2.30 p.m.) ______COMMUNICATION FROM THE CHAIR Parliament of Kenya, together with the Members for offering us these beautiful The Speaker: Honourable Members, I chambers in which to do our business – welcome you to our Third Meeting of the (Applause). Fifth Session of the Third Assembly here in this great city of Nairobi in the Republic of We do not take for granted the hospitality Kenya – (Applause). We thank God for the that they have often granted to us when we good weather that He has given us, which come to sit in this great city. We are befits our working environment. However, grateful. most importantly, I would like to extend my appreciation, on your behalf, to His Honourable Members, as you may be Excellency President Uhuru Kenyatta, the aware, our stay in the Republic of Kenya is Government of Kenya, and the people of action packed. We have our plenary that is Kenya for the great hospitality and going to be running, we will have an welcome that they have extended to us – address from His Excellency President (Applause). Uhuru Kenyatta next week on Tuesday. We shall also be having, immediately we In a very special way, I would like to extend conclude our meeting, as you are aware, the my appreciation, on your behalf, to the Rt. Inter Parliamentary Seminar - code named hon. Justin Muturi, the Speaker of the the Nanyuki Series - immediately after, National Assembly of Kenya, the Rt. hon. starting next week on Thursday. Ekwee Ethuro and the entire staff of the

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Nonetheless, about two or three days after Immediately after the Nanyuki Series, we our session, the honourable Secretary shall be travelling to Mombasa to engage General of this Community issued a very ferociously in our Inter Parliamentary strong statement that I thought appeared to Games. I would like to kindly request the be like a rebuttal to our resolution of the managers of the different sporting House. In fact, he went on to admit that the disciplines to organise the teams and begin House had oversight authority in doing practice immediately. You know that our what it had done, and then he wrote a very performance in the last games was strong letter. He called a press conference exemplary. We are champions in football, and said that he wanted to seek further we did very well in Netball, we did very evidence from the Speaker on this matter. I well in athletics, we did very well in tug of thought that was un-procedural, wrong, un- war, and we do not want to go below that parliamentary, uncalled for and, indeed, record. We just have to go higher. So, I very reckless. really plead with you that we should – (Interjection) - of course, the golfers did Mr Speaker, I need your guidance and very well, too. So, I implore you, clarification on this. In fact, I do not want honourable Members, to begin the practice to preclude what the investigations of that because our colleagues in the Partner States particular committee will do, but one of his have been at it for a while. I thank you so officers – in fact, the Corporate much. Communications Officer is on record to have called that resolution of the House A few months ago, we passed a very baseless. We take strong exception to that. important law, the Creative Industries Bill That is an assault and a raid on the integrity that promotes art and creativity in this and reputation of this House. Therefore, it region. Today we are honoured by the must be cleared, Mr Speaker. Thank you presence of Mr Morris Musyoka Nzili, but very much. mostly known as Wamahuyu. He is a great artist; he is one of the sons of Africa who The Speaker: Thank you so much, hon. has communicated greatly to the region Ogle who has risen on a point of procedure using his talent as an artist. You are on a matter that transpired during our welcome, sir. (Applause). Second Meeting while we were in Zanzibar. Mr Abubakar Ogle (Kenya): Mr Speaker, may I also join you in welcoming the Honourable friends and colleagues, the honourable Members to this very beautiful spokesperson of this Assembly is the city of Nairobi? Speaker. Any business before this House is procured and concluded according to the Mr Speaker, you will remember that during Rules of Procedure. All Members of the our last session in Zanzibar - actually on the Assembly, including the ex-officio last day of our session in Zanzibar - I stood members must abide by the Rules of on the floor of the House under Rule 30(l) Procedure of this House. to move a motion on a matter of public importance. The motion was duly What is passed by this Assembly is considered, and the House adopted a transmitted to the relevant offices through resolution. That resolution is currently the Office of the Clerk, and that we always going through the due process that similar do and very clearly as per the rules of this ones normally go through. House. Anything to the contrary is un- procedural and is not accepted.

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On the questions of that communication, I Article 49(2) (c) and 134 of the Treaty would like to inform the Assembly that the for the Establishment of the EAC. This Commission has met with the Chair, function is post budget and Council of Ministers and members of the implementation of the budget by organs Council and discussed in depth the question and institutions of the EAC; of communication. We have agreed that iii) Carryout post audit function that from now onwards, we shall follow the encompasses the need to monitor the rules that govern the different organs and implementation of the budget in a institutions of the Community while we are manner similar to internal audit, doing our business. I thank you so much. pursuant to Rule 72(1) that the Assembly shall monitor the PAPERS implementation of the budget of the Community through the Committee The following Paper was laid on the Table: responsible for budgetary control and - other relevant Committees; (by the Chairperson, Committee on iv) Carry out on-spot assessment on Accounts (Mr Jeremie Ngendakumana) activities of the EAC and those of the (Burundi) donors; and, to v) Present a report with recommendations The Report of the Committee on to the House for debate and adoption, Accounts of the Meeting with the Audit and Risk Committee The East African Audit and Risk Committee is mandated to discharge its The Speaker: Hon. Jeremie, move the oversight responsibilities concerning: motion. i) The effectiveness of the processes of Governance; Mr Ngendakumana: Mr Speaker, I beg to ii) The integrity of the financial move that the Report of the Committee on information; Accounts on the meeting with Audit and iii) Compliance with legislation, Risk Committee be adopted. regulatory requirements and internal policies and procedures; The Speaker: Seconders? Hon. iv) The adequacy of the internal Mulengani, hon. Mumbi and all the control system; members standing. Chairperson, proceed. v) The effectiveness of risk management; Mr Ngendakumana: Mr Speaker, whereas vi) Efficiency, effectiveness and the Committee on Accounts is particularly economy (value for money) in the mandated to - use of the Community resources; and i) Carryout a post audit review and vii) The performance of the EAC scrutiny of the expenditure incurred by Internal Audit function. the EAC Secretariat, the Organs and Institutions of the sums appropriated in The East African Community Audit and annual budgets approved by the EALA Risk Committee was established by the upon presentation by the Chairperson of Charter that was approved by the 20th the Council of Ministers of the EAC; Meeting of the Council of Ministers ii) Carryout out post audit review and (EAC/CM/20/Decision 87) and amended scrutiny of the expenditure based on an by the 32nd Meeting of the same Council. annual audit report of the Audit The Committee derives its mandate from Commission, pursuant to provisions of

Tuesday 22 November 2016 East African Legislative Assembly Debates the Charter and assists the Council as its technical arm. The Audit Commission of the EAC had reported that the EAC Secretariat submitted Owing to the fact that the Community has Financial Statements for the FY 2014/15 to been faced with issues as pointed out by the the Audit Commission on 5th October 2015. Audit Commission and recommended upon The Director of Finance and the Secretary by the Assembly, the issues have persisted General signed the submitted Financial despite Assembly efforts to mitigate the Statements on 25th September 2015 and 30th audit queries. The Committee deemed it September 2015 respectively. appropriate to meet the Audit and Risk Committee to discuss further the roots of It was noted that the EAC Secretariat the issues for a lasting solution. passed 1146 adjustments to the transactions in the General Ledger after the submission 2.0 The Objective of the Meeting of the Financial Statements. Out of these adjustments, the Audit Commission The Committee met the Audit and Risk recommended 138 and the remaining 1008 Committee to forge a working relationship. adjustments were passed by the EAC The Committee on Accounts being an Secretariat. accountability Committee and an arm of the Assembly as an oversight organ, would During the review and consideration of the work with the Audit and Risk Committee, Audit Commission reports, the EAC just like it works with the Audit Management conceded that there is lack of Commission. The roles of the two coherency and complementarity in the Committees are almost similar despite finance department hence financial performance in different capacities with imprudence. different reporting structures. It is in this regard that the Committee on Accounts has Indeed, there is lack of proper recording of initiated the meeting as culture of sharing financial transactions and general lack of information and building synergy to capability to exercise supervisory role in enhance accountability in the Organs and the finance department. The adjustments of Institutions of the Community. the Financial Statements are an indicator of failure of the EAC top Management to 3.0 Methodology supervise its departments and laxity of the finance staff and the Internal Audit to do The Committee conducted a joint meeting their work. where the Chairpersons read statements as opening remarks, made presentations and The EAC Council of Ministers is required held plenary discussions. to -

4.0 Presentations i) strengthen EAC internal control mechanisms by ensuring that financial 4.1 Recurrent Audit Queries in the EAC transactions are accurately and timely Organs and Institutions posted in the financial information system; The Chairperson of the Committee on ii) direct EAC Management to enhance Accounts presented the recurrent Audit capabilities of finance and internal audit Queries in the EAC Organs and Institutions staff; and as follows: - iii) prevail over the directorate of finance to render its supervisory role over the 4.1.1 Accounting Function at EAC accountants;

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Most important to note is that the ii) put in place mechanisms for timely accounting function at the EAC has been compilation and submission of claims queried for the last four years. If it is not for tax refunds; due to understaffing, it is the accounting iii) convene a tripartite meeting of the systems or underfunding. EAC Secretariat, EAC Council of Ministers and the Revenue Authorities 4.1.2 Lack of EAC Projects Coordination in all Partner States to forge a lasting Unit solution of the VAT issue; and iv) forge a way of engaging the Ministries This is an audit query that has existed for a of Finance directly. decade. There is need to have the Assembly EAC has a number of projects ongoing or recommendations implemented. proposed by various development partners that respond to its core mandate notably: 4.1.4 Expenditure on payments to short- Peace and Security Project, Medicines term contract staff in terms of Regulatory Harmonization Project, Climate Salaries and overtime allowances. change Project, Railways sector Enhancement Project, Financial Support There has been, and there is still, an illegal Development and Regionalization Project practice at the EAC regarding short-term etc. This relationship is likely to continue contracts. The continuous recruitment and for the long-term, hence the need to maintenance of the short-term contracts in establish a top-level unit to coordinate the the guise of stop – gap measures implementation of these projects through contravenes EAC Staff Rules and an effective project management. Regulations (2006).

The EAC Council of Ministers should 4.1.5 Irregular Payment in Lieu of Leave prioritize this matter and ensure it is addressed. The Audit Commission Reports have always pointed out this irregularity. These 4.1.3 Outstanding VAT Claims payments always have no evidence that special permission to accrue the leave had There is persistent failure of EAC been obtained or granted as required by the Management to negotiate a conclusive and regulations. The practice contravenes thorough Headquarters Agreement to Regulation 71 of the Staff Rules and enable EAC enjoy its privileges. This Regulations (2006). The EAC Council of challenge has existed since the inception of Ministers ought to come up with the EAC and in all the EAC Organs and sustainable solution to this recurrent query. Institutions. Of course, the Assembly has severally recommended that the EAC 4.1.6 Wasteful Expenditure Council of Ministers direct EAC Management to - The Audit Commission gave instances where the EAC Secretariat spent funds that i) negotiate and conclusively finalise could have been avoided had Management agreements that exempt VAT with all been more prudent in the utilization of its EAC Partner States that host EAC resources. Most of the expenditures were Organs and Institutions and all on conference facilities, fuel, and meetings and events; accommodation for various meetings.

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4.1.7 Procurement Matters over the EAC Partner States to honour their obligations and disburse contributions Every year, from FY 2010/2011 – timely. 2014/2015 the Audit Commission reports have queried procurement at the EAC. 4.1.11 Non-Compliance with the NSSF There has been irregularities in the Act (IUCEA) procurement of goods and services in contravention of Financial Rules and The IUCEA has not been effecting monthly Regulations (2012) and EAC Procurement contributions to NSSF as required by the Policies and Procedures Manual (2011). NSSF Act in the Republic of Uganda. Most procurements like awarding of NSSF has a claim of more than four million tenders and procurement of hotel services at dollars against IUCEA. The Assembly is the EAC are done without justification, not comfortable with this unresolved quorum and exceed approved thresholds. matter. The EAC Council of Ministers This query has persisted despite should expeditiously report progress in the recommendations to the EAC Council of implementation of the Assembly Ministers by the Assembly. recommendations on the matter.

4.1.8 Internal Audit Function 4.1.12 Expenditures over and above budget limits The Internal Audit Function has had concerns for many years. The major Most of the time statement of comparison problem affecting proper functioning of the of budget and actual included in the Internal Audit Unit has been understaffing, financial statements reveal expenditure hence non-accomplishment of its mandate. beyond budget in most line items. The EAC The Assembly has previously Council of Ministers should address recommended upgrading the unit to the unrealistic budgeting, weaknesses in directorate level but nothing has been done budget controls in all EAC organs and to date! institutions.

4.1.9 Budget Performance 4.2 Presentation by the Chairperson of the Audit and Risk Committee Budget performance at the EAC has been a recurrent issue. There has been Under 4.2. 1 Introduction Utilization of Budgeted Funds especially in the EAC Projects and programs. The poor The Audit and Risk Committee informed performance has always been attributed to the meeting that it is a technical committee unrealistic project budgeting, late of the EAC Council of Ministers that was disbursement of funds and different budget established by the 25th Meeting of the cycles. The EAC Council of Ministers has Council of Ministers not done anything despite Assembly (EAC/CM25/Decision 43). The Audit and recommendations. Risk Committee was established and appointed in accordance with Regulation 4.1.10 Shortfall in Funding 110 of the EAC Financial Rules and Regulations (2012), that gives powers to Despite efforts to recover the outstanding the Council to establish and appoint balance, there is always outstanding members of the Audit and Risk Committee. balances from the Partner States. This applies to all organs and institutions. The Article 135 (1) of the Treaty for the EAC Council of Ministers should prevail Establishment of the East African

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Community gives powers to the Council to b) The Audit and Risk Committee has been make Financial Rules and Regulations of assisting the Council of Ministers in the Community. analyzing and making recommendations on matters of governance, accountability and The Committee derives its mandate from effective use of the Community’s the Audit and Risk Committee Charter that resources. was approved by the 20th Meeting of the Council of Ministers c) The Audit and Risk Committee has (EAC/CM/20/Decision 87) and amended since advocated for the establishment by the 32nd Meeting of the Council of and/or improvement of the Internal Audit Ministers. function across the EAC Organs and Institutions and has succeeded to some 4.2.2 Execution of the Audit and Risk extent for instance Lake Victoria Fisheries Committee mandate/responsibilities Organization has now an audit unit headed by a Principal Internal Auditor. In accordance with the Charter, the Committee is required to meet at least four d) Recommendations from the Internal times a year. The Internal Audit units of the Audit and Audit Commission are now part Organs and Institutions periodically of the reports of the Council of Ministers prepare reports in line with the approved and the Council can now monitor their work plans and submit the same to the implementation through the existing EAC Audit and Risk Committee. Monitoring & Evaluation framework.

In executing its mandate, the Committee 4.2.4 Challenges meets to deliberate on issues in line with their mandate and prepares reports with The Audit and Risk Committee stated that recommendations, which are eventually despite the achievements that have been submitted to the Council annually for recorded since its establishment, there have consideration and adoption. been challenges, which have affected the execution of the mandates of the The Council of Ministers meet at least Committee as follows: twice a year and consider the status of implementation of previous 4.2.4.1 Governance decisions/directives emanating from the a) There is slow Implementation of the Audit and Risk Committee Audit and Risk Committee recommendations. recommendations by organs and institutions as well as Partner States. 4.2.3 Achievements b) EAC Governance structures limit corporate governance in such a way that The Audit and Risk Committee informed EAC Secretariat convenes Audit and the meeting that some achievements had so Risk Committee meetings at its far been registered:- convenience. a) Improvement of the link between the Internal Audit function and the Council of 4.2.4.2 Internal Audit Units Ministers through the Internal Audit a) The Structure of the Internal Audit reports, which are reviewed by the Audit Units of the EAC Organs and and Risk Committee and tabled to Council Institutions is not in line with the annually, hence improvement in the International Professional Practice implementation of the recommendations of Framework (IPPF Standard 1110 on the Internal Audit unit.

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Organizational Independence) properly, there is need for synergy and rendering the function ineffective. harmonized working relationship between the Assembly Committee on Accounts, the b) The Internal Audit Units are Audit Commission and the Council. understaffed and underfunded, causing ineffective delivery on their mandate. Committee Recommendation

4.2.4.3 Risk Management The Committee recommends to the Assembly to urge the EAC Council of There is lack of full operationalization Ministers to direct the EAC Secretariat to (EAC-wide) of the approved Risk initiate and regularly convene the tripartite Management Framework, Policy and meeting for purposes of building synergy Strategy that will cover risk assessment for and harmonizing accountability at the EAC. the remaining institutions - LVBC, LVFO and CASSOA. 5.1.3 Non-implementation of Assembly recommendations and non- 5.0 PLENARY DISCUSSIONS disclosure of audit and assessment results on staff qualifications. The two Committees held plenary discussions arising out of the presentations The Committee recalled that following a made by the two Chairpersons. recommendation on due diligence on staff qualifications, audit was carried out 5.1 Findings / Observations following the discovery of forged academic 5.1.1 The Untimely convening of the papers by the expelled senior accountant at Audit and Risk Committee to execute its the LVBC. duties. The meeting was informed that due diligence of all EAC staff qualifications The Committee observed that the Audit and was undertaken and a report produced but it Risk Committee is convened by the EAC was never disclosed to any of the oversight Secretariat at its convenience. Whereas the or accountability Committees. Audit and Risk Committee was established as a technical arm of the EAC Council of Committee Recommendation Ministers, it does not regularly meet in accordance with the Charter and not The Committee recommends to the accorded adequate time to brief the EAC Assembly to urge the EAC Council of Council of Ministers appropriately. Ministers to direct the EAC Secretary General to table before the Assembly, the Committee Recommendation said report in January 2017 during the next session. The Committee recommends to the Assembly to urge the EAC Council of 5.1.4 Gaps in EAC Management and Ministers to accord time and regularize Governance Audit and Risk Committee meetings in accordance with its Charter. The meeting was informed that there are so many gaps in EAC Management and 5.1.2 Lack of Synergy between Oversight Governance partially expressed by the lack and Accountability Committees. of EAC Projects Coordination Unit. It was clear that the Council has always The Committee noted that for effective received reports from the Audit delivery and to serve the Community Commission, the Audit and Risk

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Committee and the Assembly. All the recommendation has been implemented in reports have pointed out the issues and a period of two years. flaws at the EAC but the EAC Council of Ministers has not address most of the The Committee expressed its issues. disappointment about this.

Committee Recommendation Committee Recommendation

The Committee recommends to the The Committee recommends to the Assembly to urge the EAC Council of Assembly to urge the EAC Council of Ministers to arrange an extra ordinary Ministers always to ensure all meeting and accord time to the Audit and recommendations are implemented timely. Risk Committee for a regular and detailed brief on the issues paralyzing the 5.1.7 Financial Limitations Community. The Audit and Risk Committee informed 5.1.5 Performance of the Audit and Risk the Committee that financial difficulties Committee caused by delays and lack of disbursements of contributions by Partner States also lead The Committee observed that the Audit and to non-implementation of some of the Risk Committee does not perform its duties recommendations. in accordance with the Charter. The Audit and Risk Committee has met fewer times in Committee Recommendation fact only two instead of the four as stipulated by the Risk and Audit Committee The Committee recommends to the Charter. Assembly to urge the EAC Council of Ministers to - Committee Recommendation a) always ensure that Partner States disburse their contributions on time; The Committee recommends to the b) lift the zero-increment policy on the Assembly to urge the EAC Council of EAC budget; and to Ministers to direct the EAC Secretariat to - c) table quarterly reports to the Assembly. a) avail resources to enable Audit and Risk Committee to meet regularly; 5.1.8 Audit and Risk Committee b) facilitate Audit and Risk Committee in Reports to Council the discharge of its duties, and to The Committee noted that the Audit and implement Assembly recommendations Risk Committee reports to the EAC vigorously. Council of Ministers annually. Given the state of affairs at the EAC, there is urgent 5.1.6 Slow pace in implementation of need to address issues of governance and Audit and Risk Committee exercise proper risk management and Recommendations controls.

The Audit and Risk Committee informed Committee Recommendation the Committee on Accounts that for the fewer times it has met to review the Audit The Committee recommends to the Commission reports, several Assembly to urge the EAC Council of recommendations have been drawn. It is Ministers to ensure that detailed reports of however disappointing that only one the Audit and Risk Committee are received

Tuesday 22 November 2016 East African Legislative Assembly Debates and attended to adequately on a quarterly basis. Committee Recommendation

5.1.9 Inefficiency of the Internal Audit The Committee recommends to the Units Assembly to urge the EAC Council of Ministers to prioritize and expedite full The Committee was informed that the operationalization of an EAC – wide Risk Internal Audit Units of the EAC Organs and Management Framework, Policy and Institutions structure is not in line with the Strategy to cover EAC Institutions also. International Professional Practice Framework (IPPF Standard 1110 on 5.1.11 Weak Monitoring and Evaluation Organizational Independence), rendering Mechanism the function ineffective. This issue has not been attended to despite reports to the EAC The Committee noted weaknesses in Council of Ministers. monitoring and evaluation mechanisms at the EAC. The Committee also noted that The Committee was further informed that Council decisions and Assembly inefficiency of the Internal Audit Units is recommendations are neither effectively, also caused by understaffing and nor sufficiently implemented. insufficient funding. This specifically humper effective delivery of the Internal Committee Recommendations Audit Units Mandate. The Committee recommends to the Committee Recommendations Assembly to urge the EAC Council of Ministers to - The Committee recommends to the a) enhance Monitoring and Evaluation Assembly to urge the EAC Council of mechanism for full implementation of Ministers to - the Council decisions, Assembly a) cause the alignment of the EAC Internal recommendations and Audit and Risk Audit Units to IPPF Standard 1110 on Committee recommendations by Organizational Independence by March conducting physical monitoring for 2017; and, verification on the reported status of b) ensure that Internal Audit Units are implementation of the decisions and sufficiently staffed and funded. recommendations; b) direct EAC Secretariat to allocate 5.1.10 Non-Operationalization of adequate resources to enable the Audit approved frameworks, policies and and Risk Committee timely and strategies. effectively execute its mandate; and to c) build and improve capacities of the The Committee was informed that the Internal Audits of the Organs and approved (EAC – wide) Risk Management Institutions and urgently fill the Framework, Policy and Strategy risk approved positions for the Internal assessment to include LVBC, LVFO and Audit Units. CASSOA has not been fully operationalized. 6.0 Conclusion

The Committee noted that persistent refusal The Committee had a fruitful meeting with to operationalize such strategies and the Audit and Risk Committee. The policies would always expose the EAC meeting discussed several issues affecting establishment to risks. the Community with the EAC Council of

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Ministers at the centre stage in successes What impression will they get about their and failures of the Community. funds that they put in the East African Community? The Council is vested with full authority to manage the Community but has not done Mr Speaker, it is now 16 years since the re- much despite several reports and advice by establishment of the East African all the oversight and accountability Community, what impressions are we Committees and Organs. giving to East Africans? Are we delivering the objectives that we had promised when The Council, for several years, has received the East African Community was being re- reports from the Audit Commission, the established? Are we giving East African Audit and Risk Committee and the value for their money and trust? East Assembly. In accordance with Article 14 of Africans are expecting positive results in the Treaty, the Council is mandated to terms of development, integration effects ensure the proper functioning and and overall better services out of the money development of the Community. This infers that is being invested. We owe an that the implementation of the explanation to 165 million East Africans recommendations proposed by the and this is a tall order. accountability committees and approved by the Assembly rests in the hands of the EAC Mr Speaker, when we read these reports, it Council of Ministers. looks like we have all been taken for a ride. How long must this go on? Can we show 7.0 Acknowledgments some seriousness in taking actions? Is this too much to ask from the Council of The Committee wishes to thank the Rt. Ministers? Hon. Speaker, the Clerk and the entire Management of EALA for the excellent Mr Speaker, when I read the report of the facilitation accorded to it while executing Audit and Risk Committee to the Council its mandate. of Ministers, it is very noticeable that there is a recurrent pattern of malpractice of Finally, the Committee wishes to thank the Community money from 2013, 2014 and Audit and Risk Committee and the Internal 2015. Audit Units for their availability and meaningful participation in the meeting. Mr Speaker, even when recommendations are made to improve the situation, no action The Speaker: Thank you very much is done for the implementation. For Chairperson. example, in the year 2015, according to the Audit and Risk Committee report, which Honourable Members, the motion on the was availed to Accounts Committee, only floor is that the Report of the Committee on one out of 17 recommendations have been Accounts on the meeting with Audit and implemented. What is the problem with the Risk Committee be adopted. Council of Ministers?

(Question propose) The Council of Ministers get these reports from their Audit Commission, from their Ms Shy Rose Bhanji (Tanzania): Mr Risk and Audit Committee and from this Speaker, the basis of my concern touches Assembly through the Accounts on two areas. What will the development Committee. I am repeating my question: partners think about how their money is what is the problem with the Council of being used when they read these reports? Ministers? What is making them not take

Tuesday 22 November 2016 East African Legislative Assembly Debates action? This is very sad. Out of 17 this Parliament for their first time. Where recommendations, only one has been was the origin of the creation of the Audit implemented. and Risk Committee? We need to Mr Speaker, the Council of Ministers not understand. The origin of the creation of the taking appropriate action is a let-down to Audit and Risk Committee is the genesis of everyone. The governments of East African the Audit Commission report, which, time Community, donors, East Africans, this and again, envisaged the conflict of interest Assembly and all the stakeholders – this is of the auditee who is the Secretary General, a big let-down. the CEO of the Community where the internal audit was continuously reporting Finally, in order to move forward, I urge the both functionally and administratively. Council of Ministers to hold an extra ordinary meeting with the Audit and Risk Because the Secretary General was the Committee so that they talk at length to see chief auditee, he used to frustrate the how to solve these problems because it is so functional side of the internal audit. I the embarrassing. Every day in this Assembly, wisdom of this House in the Second we are talking about the same things and Assembly, which I gracefully take nothing is being done. I fully support the responsibility and honour to have chaired report and I beg to submit. the Accounts Committee then, we thought it important to recommend to Council that Mr Bernard Mulengani (Uganda): Thank there be created an Audit and Risk you very much, Mr Speaker for the Committee and we want to thank Council opportunity. I also want to join you, Mr for listening to that recommendation. Speaker in thanking the government of the Republic of Kenya and your colleague, the When the Audit and Risk Committee was Speaker of the Republic of Kenya and the created, in the wisdom of the Executive, members that have accorded us this warm they tried to make a charter but again tied welcome. We are yet to see what the former its hands. The Audit and Risk Committee is President used to say ‘mu jienjoy’. The first not working functionally very well but I weekend we shall be witnessing mu jienjoy think the direction we are headed to is good will be this one coming soon. but we need to expedite.

Mr Speaker, I also want to say that I am a One of the other things I need to tell this member of the committee but it is important House is, why was Trademark brought in that we also rise up to highlight certain the picture of the Community and what is it issues that might have come out not so well doing anyway? When we failed the in the report. Before I raise issues in support fiduciary risk assessment, the donors of the motion, I think we need to recap declined funding the Community directly. because the manner in which the Treaty Fiduciary risk assessment is basically about mandates our elections also jeopardises our internal control systems of any organ and institutional memory. Eventually we keep after failing that, they constituted an organ on leaving the Assembly because the Treaty called TIMEA, which is putting itself in a demands that we should serve for two situation as a funder, but it is a conduit terms, which is okay, but for purposes of receiving money from the funders and institutional memory and at an appropriate bringing it to the Community. moment, Council may look into this and see what they consider in future. It is surprising to find also, as a purpose of record for those who are here in the Third I think it is important to recap, know, and Assembly for the first time and I wish you maybe inform our colleagues that came to well that you come back in your second

Tuesday 22 November 2016 East African Legislative Assembly Debates term so that you continue giving complementarity that means that people in institutional memory to the Assembly. the Community are working as individuals. You are in a department but when a person At the time when TIMEA came in place, we walks away with a file, he will leave had a few challenges, and we are surprised nothing for the assistant. That is what it that some of the people who sit on the means and this is why work is not finished Board - you will find the Secretary General, in time. our permanent secretaries for the Partner States, and this creates a challenge to the The adjustments made somewhere- The extent that they are able to take the auditors were clear that it is not that corporate function of the Community – transactions were not done but the issue is (Interruption) - that the documentation and proper writing of financial statements were not up to date The Speaker: Hon. Mulengani, maybe you implying absence of staff in the have to be clear. Sitting on the board of Community. TIMEA, do you mean the sitting Secretary General or the former Secretary General or I think that these are serious issues that the office? Council needs to address.

Mr Mulengani: Mr Speaker, I meant the The other point I want to raise is on the office, and the Secretary General can issue of procurement matters on page five. substantiate it. Mr Speaker, this is a predominantly traditional query in the Community. I want Mr Speaker, to re-cap to this House, to leave it at this point. Trademark has positioned itself that it is doing what we expect the Office of the Mr Speaker, on page six, the internal audit Secretary General to do. Talking about the function. It is not the first time that this progress of the achievements of the Assembly is reiterating this and saying that Community continuously, go to any this function should be elevated to a website. Trademark is up to date with even directorate level. But even the committee the things that we plan to do. that the Council considers to be its technical committee, the Audit and Risk Committee, Mr Speaker, in that context, I thought I has ably advised the Council to create a should rise up and, first of all, give a genesis directorate and maybe in camera they have of why the Audit and Risk Committee came informed Council that the level of a in place and we think it can help the principal cannot efficiently and sufficiently Community regain. Much as we are hearing position itself in its independence. that we have passed the fiduciary assessment, how is it sustainable, or how is Mr Speaker, referring this to the it going to be maintained? The Audit and institutional review will be an Risk Committee must be empowered to understatement and it will be double help Council to achieve its objectives. standards because I am aware that there has been created a Directorate of Customs and Mr Speaker, as I refer to the report that my Trade, which is being managed by a Chair presented, on page four, the director. This is not in the Treaty, and committee is talking about underfunding neither did it wait for the institutional somewhere after (III). The Audit report is review. However, because of its necessity, clear as to the accounting function and the Council deemed it right to put a person in 1,146 adjustments. It says lack of place. complementarity. When you lack

Tuesday 22 November 2016 East African Legislative Assembly Debates

There is no reason why Council should not Again, on page seven is the issue of the establish a directorate in the internal audit work plan, the meetings of the Audit and function to enable it position itself Risk Committee vis-à-vis the financial comfortably but also to enable us to year. The Audit and Risk Committee is separate the internal audit fully functionally meeting four times as per a calendar year and at the administrative level. whereas the audited accounts follow the financial year. At this point, I would wish Council to reconsider and see if it is not necessary, in When they present an annual report to the this financial year, to create a directorate for Council, I do not know how they internal audit because there are very many distinguish between the previous years we changes that have taken place and yet they covered in the audited accounts and the require the amendment of the Treaty. current year because the reports will be over lapping. There is need for Mr Speaker, on page seven, we quote the harmonisation of the sittings of the Audit Council under its 10th Meeting when they and Risk Committee. They either follow the took the decision to create the Audit and financial year, which will give meaning and Risk Committee. There are challenges, and informed decisions to the Council. I think they include the harmonisation of titles. the work plans also follow the financial You will find that a commissioner in Kenya year. is senior to a commissioner in Uganda. A director in Kenya is a junior to a director in Mr Speaker, under the executing of their Uganda. It is creating problems for the mandates, it came to the attention that for composition of the Audit and Risk them reporting annually to the Council does Committee because of lack of not give effective results because auditing harmonisation of titles. What they call a is not an event. This is why the external commissioner in Kenya is a senior public auditors come for more two months officer to a director whereas in Uganda, a because auditing is not an event that you director is more senior to a commissioner. will come, see this, and walk away because It creates a challenge, Mr Speaker. So, it is these are procedures. in the interest of Council to ensure that these portfolios are harmonised so that we Therefore, reporting to Council once a year have a proper constitution. is cheating your technical ability for the Audit and Risk Committee to come only In addition, let the Partner States take once a year. On this I also want to say that structures we are creating at the when Council creates structures, let Community seriously. Uganda and Kenya Council avail itself for these structures. Do appointed people at a level of deputies from not limit them to your meeting times of two their Audit General offices. Other countries times a year because we are told that Audit got lower level cadres. Now what is and Risk Committee can only meet you happening in the Audit and Risk Committee when Council is meeting. No. Let the is that these senior cadres from Uganda and structures you are creating demand you to Kenya have decided to delegate their adjust your time, come, and meet them responsibilities. This means that decision- because if they have concluded a report, making is deferred because the person why would you wait when Council is sitting delegated will eventually want to come and when they come to present, they back and consult. I think it is something that present a report for more than seven days Council needs do to help this Community then you accord them less than an hour. so that we make steady progress. That is not justifiable for creation of the structures.

Tuesday 22 November 2016 East African Legislative Assembly Debates

The same applies to the Audit Commission. all is removed from the status to a proper They spend all the is time presenting a status of an Audit and Risk Committee of report, they look for you when you are in the Community. Council, you do not avail yourselves as Council to receive the report and then when I thank you very much, Mr Speaker, for the they present the report, they only meet you opportunity to say something on the report for an hour. of the committee I sit. The Speaker: Thank you, hon. Mulengani. I am not surprised that when we raise issues, they seem to be new to Council. This Ms Mumbi Ng’aru (Kenya): Thank you, is because this technical arm informed the Mr Speaker. I take this opportunity to committee that they inform you of what we welcome you to Kenya because I am usually raise and we were in congress when Kenyan. I take this opportunity to welcome we raised issues to this Audit and Risk all of you to our beautiful country. Karibuni Committee. They said they had noted the sana – (Applause). same issues in the report. When we come on the floor, Council seems to be as if they Thank you and I want to declare that I am a are receiving this for the first time. It is member of this committee, and I support because of the time accorded to them. this report.

The structures you are creating are good When we sat as a committee, I want to say structures to enable us beat the fiduciary that from where I sit, I felt like it was a and risk assessment, to enable us stop these performance contracting … for the Council irregularities in our reports of accounts but of Ministers and if I were to give some time is not being accorded to the structures. percentage of the marking from where I sit, you would have had an “E” because you I want to beg Council, as I talk in this last would not have had 30 per cent. term of mine, that – (Interruption) - The report is very clear; I do not need to go The Speaker: Hon. Mulengani, you are a into issues of the report. I asked my member of the committee. Speak and give colleagues to read it and probably I am sure a chance to others as well. Thank you. that there are some of you who will find that 30 per cent was so high and probably give Mr Mulengani: Most obliged, Mr Speaker. you below 20.

Mr Speaker, on page eight, the Audit and Why do I say this? There was concurrence Risk Committee is clear that the separation between us and the Risk and Audit of the internal audit function is not yet fully Commission that what this committee has achieved. Functionally, there is still some said for the last four years that I have been bit of jeopardy that comes from the a member is what they have sat me in and administrative side and we need to deal we have heard the same things. They have with that. vindicated the report of our Accounts Committee and raised the same issues that Mr Speaker, let me conclude by saying that are listed in this report and I kept on asking I support the report and I think it is very myself why. You are the policy organ of the important to make the Audit and Risk Community and I remembered at one time Committee very efficient. The only way the that Chair, Council stood up on the floor of Community is going to come out of what is the House and accused the Audit happening in our systems is by ensuring Commission of doing a shoddy job and it is that the Audit and Risk Committee first of in the Hansard yet this is a committee that

Tuesday 22 November 2016 East African Legislative Assembly Debates you formed, that you agreed that it is your just wake up and say well, I think there is a technical arm. They have raised the same problem. Everyone is shouting to us that issues and it looks like you are not taking there is a problem and I haven’t seen them seriously. guidance from the Council. If there is no guidance, I am left wondering. Is it because For me, it was a performance contract in they are hiding their own incompetence? Is view of your performance, you almost got it because it is business as usual? Is it zero, and I am asking myself why. I want to because okay, we do not want to take the be fair to you and say probably, the way you bull by the horns by pointing at issues at the are structured to meet twice or three times a Secretariat because of certain issues? That year is not enough to look at the issues that is exactly what I mean. are very deep in the Community. I beg that instead of being told that I am not Therefore, if you have heard it from the coming out clearly, I want those answers. Audit and Risk Commission, you have They should give us the reasons why for heard it from the auditors and from this four years, I had to repeat the same issues Assembly, why haven’t you found it fit to again and again. reorganise yourselves and make recommendations to the Summit that you Mr Speaker, when we met this committee, need to sit? Maybe the Chair, Council we asked in our recommendation whether should be a permanent resident of Arusha we could have a tripartite meeting, if funds where there is action and where you are allow, to have us and the Council and the required. Secretariat and the Committee of Accounts and the Audit and Risk Committee sit I have not heard you say, bring that together so that we can face each other and recommendation to the Assembly. I have ask the questions that we are talking about been asking myself, who is the beneficiary because I can tell you that we felt like there of this confusion at the East African were issues that - one of them was…You Community? You know what, I am know, the same insubordination – thinking that you are also beneficiaries of (Interruption) - the confusion. The Speaker: Hon. Mumbi, I would like to I am saying this because sometimes we help you on that one. That is a very strong look at – (Interruption) - point you are raising. It could come out as a recommendation by the committee that The Speaker: Hon. Mumbi, maybe you there is need for a tripartite meeting and this need to be succinct on that kind of House resolves and adopts it then the SG allegation to say that Council of Ministers will work around to look for funds for that are beneficiary of a certain confusion as if meeting. the confusion is deliberately structured. Maybe you also need to let us know what Ms Mumbi: It is there, Madam Speaker. I this confusion is. am picking on it; I didn’t pick what page it is on. I apologise, I have not yet had my eye Ms Mumbi: Mr Speaker, I was coming to surgery and that is why I did not pick on the that. Please give me an opportunity to page but it is there, because it was a explain. Why would three different levels recommendation that was very firmly and of governance mention issues that are very unanimously agreed upon by the dear to the Community? Wouldn’t it raise Committee. red flags to the Council of Ministers that we have a big issue here? Why wouldn’t they

Tuesday 22 November 2016 East African Legislative Assembly Debates

I was saying that the reasons why we felt to serve. So, I am indeed delighted that we that way is because the Audit Commission are here to do good business to serve the was talking to us like the Chair, Council is East African people. high there and so there are some things that they would not want to express. We told Allow me to thank the leadership of them that the reason why we are members Parliament for the hospitality and the of this House and members of that sufficient facilities that they have put at our committee is to say the things that they not disposal in order to create an enabling say and say them in their presence so that environment for us to do justice to eh this exchange helps the issues that have business that brought us here. been prevailing for a long time. It has come out in the open and if there is need for the Mr Speaker, I would like to thank the Chair Assembly to make firm recommendations of the Committee for an exhaustive report, through the Council to the Summit, those very informative, well structured and things can be done once and for all. provided with a lot of principles and details regarding the subject that they were I can say confidently that not all the investigating. Members of this Assembly are enjoying when you have to have a liquidity problem, To the Council of Ministers, I think this is when you have to find out what is a good report that you could use as happening at the Community, you cannot reference material because therein are aske ach other questions. We need to do this recommendations, findings that can make once and for all even if it is not for this your performance better as a Council of Third EALA. We are mandated to handover Ministers. to the Fourth EALA something that they can pick from us and do a good job for the The Council of Ministers does provide Community. We owe it to the East political leadership in terms of driving the Africans. I beg to support the motion. integration agenda, and in the process, they also supervise various technical The Speaker: Thank you, hon. Mumbi. institutions, organs and agencies of the Community to be able to fulfil their Mr Mike Sebalu (Uganda): Thank you mandate. I am glad to say that the Council very much, Mr Speaker. Likewise, I would has done a good job in terms of creating like to thank the President, the Government, these institutions and structures that give the Parliament and the people of the accountability. However, I think it is not Republic of Kenya for playing hosts to this good enough to stop at creating them. wonderful sitting of ours. I am indeed Council should go further to ensure that delighted as is usually the case to be in these institutions are empowered with Nairobi. It is a happening city and, finances, with human resources and other definitely, we enjoy ourselves in Nairobi. logistical needs for them to deliver on their mandate. I just want to say that this is my last time to be in this chamber as an EALA member. Secondly, Council should seize the Others may have an opportunity. The next opportunity to engage these institutions in a possible time to be around- the nearest I can mutually beneficial manner for the benefit be is the Strangers Gallery - (Interjections). of the collective good of the East African I do not speculate about those matters and people. that is why I am saying that we are indeed on our final tour of duty as EALA Furthermore, Council needs to work members; those of us that have had a term towards making these institutions efficient

Tuesday 22 November 2016 East African Legislative Assembly Debates in the way they execute their mandate recommendations being made from those because at the end of the day, we need to very institutions and even from the reports have deliverables to the East African that have been presented by the relevant people. And if this is done, if efficiency is accountability committees of this House enhanced, productivity is enhanced, and the but the- people will benefit from the outcome of the performance. The Speaker: Hon. Sebalu, as a matter of information, you may be aware that the Council should also ensure that they Committee on Legal Rules and Privileges support these institutions to be effective in carried out an audit on the implementation the work that they do, when they do it, how of the recommendations of this Assembly they do it and for what purpose they do it so by the Council and the report was tabled in that at the end of the day, we benefit as a this House so you have done your bit. region. Proceed.

Mr Speaker, it is clear from the outcome Mr Sebalu: That is why I am saying that and findings of these institutions that a few now the Council itself needs to make use of areas are not moving as expected. We need such a document to audit themselves; their to appreciate that the Committee of status of implementation and their level of Accounts, which is the equivalent of the performance on the so many Public Accounts Committees in our Partner recommendations because their work has States, takes a lead role in terms of been made easy. It is cut out that you need following value for money and in ensuring to pick that report, look at the so many that budgets that are passed are utilised for recommendations that have been made; the purposes that they are passed. They are they have been classified so Council is doing a good job engaging so the better off making good use of such a report recommendation of the tripartite and then put in motion a process of ensuring arrangement is something that must be that the back log in terms of appreciated to build synergy around the implementation is cleared. three stakeholders in terms of improving the performance levels. That is the only way that we will be impactful to the East African people Mr Speaker, the recommendations that because Parliament has done its bit, the have always come out of these institutions institutions and structures have done their have always been presented in this House bit, those that are mandated to implement and one thing that is missing and where I need to be driven by Council, which has the want Council of Ministers to take special political leadership and the supervisory interest is not in the structures, not in the responsibility to ensure that recommendations but it is at the level of implementation is undertaken. implementation. Maybe we may need to have an implementation audit of the When you do all this good work, even the recommendations that have been passed output of EALA may not be seen to be because we have so many impactful when implementation is not recommendations gathering dust undertaken. EALA will be taken to have somewhere on our shelves and the grossed in the dark so for our impact, as an challenge and the weakness is at the level Assembly to be realised by the East African of implementation. people, it can only do so when implementation is undertaken and we are If you go through the documentation across able to explain the full cycle. We initiated the board, you will find very important this, we recommended, passed it over to the

Tuesday 22 November 2016 East African Legislative Assembly Debates

Executive under the Council, Mr Speaker, our Chair is not an ordinary implementation was undertaken so when Chair but an expert in these financial implementation is undertaken in all the matters, and I congratulate him. capitals and the effects are realised, this Parliament remains a relevant and useful Coming back to this report, I have some institution to the East African people. comments that were not mentioned in this report. Good management, as you know, So, it can be done. We can do a good job involves matching key tasks with provided each stakeholder plays their part appropriate people. This means the people and plays it well. I always like to quote that who have knowledge of what they are statement from the late Mwalimu because it asked to do and do it. There are some steps. is the combination of actions from different Once you are involved in management or to actors that then can create impact so for the get good management, you have to think Council, definitely, this report is yet about the time. Time is very important, and another deliverable that you need to look at, designated financial experts should lead an compare it with the previous ones and work Audit Committee; someone who knows and out an implementation schedule and it is here where we have problems when modalities. At the end of the day you will you find that the Audit Committee is not feel proud of yourselves, given the impact well staffed or is understaffed. You cannot that will be derived out of the expect to get a very good result. implementation. Secondly, we need to improve internal Mr Speaker, I am not a member of the controls. Internal controls are more than a committee but I support even more signature on a cheque or segregation of vehemently than some members do. Thank some tasks. It needs to be more than that you. and the internal controls, properly designed, will support every aspect of The Speaker: Thank you so much, hon. management. For that, proper internal Sebalu. Before I give honourable to speak, controls will lead to efficiency in all the I would like to make it known to members processes and when you are there, you can that we must appreciate the coverage by expect to get better results. Kenya Television Network (KTN) that has given us live coverage this time. We are Thirdly, we need to improve our financial very grateful to the management of KTN. management by getting something that is not individual but people working as a Mr Pierre Celestin Rwigema (Rwanda): group and then they can even have score Thank you, Mr Speaker. I would like to join card and then plan to achieve what they you to thank the President, the Government plan to do. of Kenya, and the people in the Kenya chapter for the warm welcome and for the Mr Speaker, we also need to clarify on roles hospitality that we are getting until now – and responsibilities. In some organs and (Applause). institutions of EAC, you see that there are no clarifications of some roles and Mr Speaker, I am a member of the responsibilities and when you hear a system committee and I would like to support the like this one, you cannot expect to get better report. I would like to thank our Chair and results. Without clear responsibilities, there the members of the committee for the good is a risk that the talks will not be efficiently and well-elaborated report. or effectively executed or not executed at all.

Tuesday 22 November 2016 East African Legislative Assembly Debates

Lastly and this is the most important is brothers will be able to make it, with God’s value for money. Value for money is what grace and hopefully they will carry on. we need to have good management in EAC organs and institutions. Mr Speaker tied to this, I wanted to highlight a few other issues which I thought An active Audit Committee is still involved would help us on the issue of institutional with these auditors through the whole year. memory and one of these is the issue of I can compare and say that the Audit publication of the Hansard. Committee relationship with the auditors is similar to a willing and engaged patient Mr Speaker, I think it is very important that who makes the physician better and more the Hansard is published and that the effective because sometimes the physician Hansard is availed to members of the can be more committed because of the Assembly so that whether you come in the patient. First, Second, Third or Fourth Assembly, you are able to go to the library and read Mr Speaker, the work we did as a and have a chronology of what transpired committee is work that needs to be done, before. not once in a while but quarterly and then we can push and get better results. With Mr Speaker, I remember when we were those remarks, I support this report. Thank aspiring to come to EALA, one of the things you. that I did diligently as a person was to read the previous Hansards and I know that The Speaker: Thank you, hon. Rwigema. other members also confessed to me that they read the previous Hansards. I am Ms Dora Byamukama (Uganda): Thank seeing one of them, hon. Nakawuki, who you, Mr Speaker. I would like to add my was following up on what we were doing. voice to those who have thanked the So, I believe that if we have the Hansard Kenyan government for a warm welcome published, they will be able to carry on the and to say that we are every delighted to be legacy and continue this history. in this part of East Africa, which is categorised as being developed. It is Mr Speaker, connected to this on evident from the infrastructure and the way institutional memory, I would like to of life that indeed, we all aspire to be where highlight the fact that we should also find you are in the Republic of Kenya. some space and resources to put in place an East African parliamentary institute and I Mr Speaker, I would like to make three am saying very humbly. It does not have to observations. I was privileged to serve on take a lot of money but we can have video the Accounts Committee in the Second conferencing whereby for example, when EALA and like hon. Mulengani said, I was the members of the Fourth Assembly come very happy to be part of that particular in, we have a video conference and we sit committee which proposed the creation of in a room, for example in Kampala and we this particular committee on Audit and are able to interact with member who are Risk. sitting in Arusha and with those who are sitting in the other Partner States. Having said this, hon. Mulengani was talking about the issue of institutional This is cost effective and we will be able to memory and in away saying that the term share information in a constructive manner. limits will hamper this from going on. I am So when we talk about the East African glad to note that some of our sisters and parliamentary institute, we are not talking about issues of money or where it will be

Tuesday 22 November 2016 East African Legislative Assembly Debates located. We are talking about transferring VAT claims, the irregular payment in lieu of information as well as sharing of of leave, wasteful expenditure, experience, which will enable us to have a procurement matters, the short term better East African Community and to be contract, non-compliance with NSSF – all more effective and efficient in the way we these are the same. For me what would also operate. be new would be the aspect of risk.

Mr Speaker, my second point is on the issue Mr Speaker, there are some few of how this particular Audit and Risk contradictions. For example when you look Committee was formed. I have read in the at page six, you will find mention of a short report mention of a charter. I do not fall in funding with regard to contribution understand nor appreciate - maybe I need and then you will find that there is a some more clarification on how a charter problem of over expenditure. If there is a came to be its legal framework because short fall in funding contributions, how can maybe it would have been some kind of you have another challenge of over regulations or maybe we could have even expenditure? It is a bit confusing but I have had a law. remember saying before this House - I need your protection from hon. Mulengani and This use of the word charter is alien to the hon. Ndahiro. Treaty and maybe this is what is causing some of the problems because for example, The Speaker: Honourable members, let us the East African Development Bank has a listen to the Member holding the floor in charter. The Audit and Risk Committee has silence. a charter. These are the only two institutions that I know which have Ms Byamukama: What I was saying is that charters. So, maybe we may need to look at there is a contradiction because if there is a how we can have a legal framework, which shortfall in funding, how can there be over will enable this particular committee to be expenditure? able to function properly. I want to say clearly that the EAC is a very Mr Speaker, connected to this is the fact interesting place and I hope this will be that on the aspect of audit, because the rectified because all this is supposed to help Audit Commission has pointed out these us become more efficient and more issues, there may be nothing new in the real effective. It is like when you have a house sense but I wanted to hear more from the and in one of the rooms, the children are committee on the issue of risk. Did you over fed. In another room, the children are have time to discuss with the Audit and malnourished. In another, the children are Risk Committee the potential risks or the starving. How can we ensure that we have current risks that the EAC faces, and did a house called the EAC whereby all the they have time to propose top you how children are healthy? I do not know whether these risks are to be mitigated? It is very you understand me because sometimes important that we anticipate and analyse the when we say these things, I do not know risks so that we do not get shocked when how better to be understood. You will find certain things happen. that you will have some offices, which are budgeting for days, which are beyond 365, So, I wanted to hear from the chairman and you will have other entities, which do whether this aspect was brought on board not even have money to staff an internal because as I said, on the issue of audit, most audit office. of what has been raised here, even from as far as 2007, is the same: the outstanding

Tuesday 22 November 2016 East African Legislative Assembly Debates

I think we need to rationalise and I want to these things so that we can go away with take it in good faith such that this particular our heads lifted high that at least not only is report is used to help us rectify so that we it one out of the 17 recommendations were have a healthy organisation. adhered to. I want to thank hon. Shy-Rise because I was asking, out of how many and Mr Speaker, as I conclude, I want to thank she put that. I hope it will be part of the the East African Community and in report - (Interruption). particular the Secretariat. I think when you look at page seven, you will find that for the Ms Hajabakiga: Thank you, Mr Speaker first time, and maybe in a long time, this and thank you, hon. Dora for giving way. It particular Audit and Risk Committee is seems that we are just talking to ourselves. highlighting achievements and these are not Last August, most of these mean achievements. recommendations came in the Audit report and we set a time frame of October for the I think it is important for us to raise issues Council to report. Now we are talking about but at the same time also celebrate before you leave. Are you sure that you are achievements. For me one of the other going to get that report? achievements is the fact that we have passed the fiduciary risk assessment. This is Ms Byamukama: Thank you, hon. Patricia very important because if the reason for not for that information and reminder. We live giving us money was because we had not by hope, and quoting the – (Interruption) - passed this assessment and this has now been passed, there is no cause or excuse Mr Ngendakumana: The information is which the donors will use or other partner that we have prepared another question to swill use not to associate with us or to be given before the Council so that they partner with us. I believe that these may get an opportunity to provide to this achievements can be expanded. House the status of implementation of all the recommendations whose follow up was In conclusion, Mr Speaker, if we do not to be done in October and November. I change, we shall become extinct. For the think that during this plenary we will get Council of Ministers, with due respect, it from the Council of Ministers the whole cannot be business as usual. I think there status of implementation of those must be a radical change in the way we recommendations. I thank you. operate. Can’t we put some timelines, for example on implementation? Can’t there be Ms Byamukama: Mr Speaker, I would like a whip within the Council of Ministers to to conclude and take a cue from hon. ensure that thus report, which has been Patricia and my brother, hon. Jeremie. presented today, is acted upon? A simple Maybe as one of the recommendations we thing like budget cycles. should pass a resolution that Council presents a status report on implementation Countries that joined the EAC in 2007 are on what has been raised in the next plenary. still running a budget cycle from January to If this is agreeable, maybe then it will December. I do not want to mention them. answer what has been raised because I do This is an issue of political will. not want to push it to the end of our tenure. Let us use what we have and saying the next Mr Speaker, I do not want to go into many plenary, Council should give us a status things since I am winding up my tenure, but report on the implementation status of the hopefully, the message has been taken. I recommendations. If this is agreeable, I hope and pray that before we end our term, think this will be more constructive. we shall get a conclusive report on some of

Tuesday 22 November 2016 East African Legislative Assembly Debates

I thank you very much and I support the For example, we have the internal audit, the report. Thank you very much. Audit Commission, the Accounts Commission, the Assembly, the Council of The Speaker: Thank you, honourable Ministers and maybe the Summit and still members. I will give two members; hon. things are not working with all these Nancy, hon. Kimbisa and finally hon. structures. The more we fail, the more we Taslima and I will explain why. One of the add another structure to identify the same reasons is the threading theme I this report so we are creating bureaucracy but things is issues of financing of the integration are not going on well. process. We have the good news that tomorrow in the morning the Secretary I have the feeling that the problem – I do General will be signing contracts of some not think that the problem lies squarely with fresh funding to the Community by some the Council of Ministers. I have a feeling development partners and he should leave I that it does not. I have a feeling that there is time for that meeting to take place something wrong, maybe with the tomorrow at 9.00. So I am not limiting structures, maybe with the timing, maybe members from debating. Please hon. with the resources, maybe with the political Kimbisa. set up within the East African Community of the Partner States, but I have a feeling Mr Adam Kimbisa (Tanzania): Thank that we should critically look at the you very much, Mr Speaker for giving me underlying causes. Let us stop dealing with the floor. I also appreciate the warm the symptomatic conditions because we welcome by the Kenyan chapter, Kenyan shall get nowhere. Thank you, Mr Speaker. people and the leadership of Kenya. The Speaker: Thank you, hon. Kimbisa. Mr Speaker, we have discussed this matter several times and the way I was hearing Ms Nancy Abisai (Kenya): Thank you, Mr what was being discussed here, I was Speaker. I would like to take this wondering what the difference between a opportunity to welcome all the members of corner shop and a well-established EALA to the capital city of Kenya, the city institution is. of Nairobi. Karibuni sana. (Applause)

Normally a corner shop is run by the family I would like to let you know that and the decisions done by the family but a unfortunately we have four sessions well-established business has some running concurrently at the same time. We financial management, accounting system have the Senate sitting, we have the and of course, auditing procedures. national Assembly sitting, we have the County Assemblies sitting and we have the When we are hearing this information this regional Parliament sitting so we have four afternoon and what we have read in the sessions taking place at the same time. I documents, I was finding some difficulty think that is a good thing. where to put the EAC. How can things happen for so long and nothing is Mr Speaker, I do not want to belabour the corrected? Are we being serious to identify point because my colleagues have talked a what the real cause of the problem is? If the lot to most of the issues. However, one of answer is yes, who is the cause of the the things that I wanted to raise is that I problem so that at least we can remove or belong to the General Purpose Committee, prevent the cancer from spreading? If the which also deals with the budget. Hon. answer is no, why have all the checkpoints Dora mentioned that some members took and structures failed? time to go through the Hansard and I want

Tuesday 22 November 2016 East African Legislative Assembly Debates to tell you that even the Hansard of this On page 6, the Committee has actually Third Assembly, if you look at the observed that the EAC Council of Ministers recommendations, they are almost has not done much despite Assembly repetitive. You can actually think that it is a recommendations being very clear on what copy and paste because most of the needs to be done. The legal committee, at recommendations that we had put in place some point, did have an activity on looking have never been implemented. at the implementation of the resolutions of the Assembly. I do not know to what extent Mr Speaker that is the biggest challenge to some of these resolutions have been efficiency and effectiveness. We are talking implemented. However, we will just be about value for money and the use of our coming up with motions, feel very good Community resources. When we are at the that the motions have been passed, feel very Budget Committee, we have often times nice that the contributions were rich and raised issues of underutilisation of budgets. healthy, and think that we have done our Of course, the project staff explained to us part but then the motion will find itself on a why there is underutilisation of budget shelf somewhere, and that will be the end of resources. the story.

We have been told about unrealistic – we I think what we need to do - despite the have also been there, and we keep on challenges and difficulties that we may be talking about unrealistic project budgets having - let us start looking at how to and most of the times we get explanations, implement some of these which are geared towards defending those recommendations, so that we get good unrealistic budgets. For me, it is not just a input on what the committee raised, what matter of just defending. It is about the Audit Committee raised, what is not processes and it is about institutions and right, what can be changed and what can be how we manage what we have put in place done to improve the process of managing in terms of how we want to move this Community resources. I support the report, Community forward. Mr Speaker.

I do not even want to talk about this much The Speaker: Thank you, hon. Nancy. because we have talked about this issue of underutilisation, we have talked about Mr Twaha Taslima (Tanzania): Thank unrealistic budgeting, we have made you, Mr Speaker. I will start by quoting a recommendations even from the General saying in Kiswahili, which says, “Mali bila Purpose Committee, which are almost daftari, huisha bila tarifa”. The meaning is similar, to what the Accounts Committee is having … trade without properly keeping also giving as recommendations but books of accounts renders the stock to nothing has been done. perish unnoticed.

When we talk about late disbursement of Why am I saying this? If you look at this funds, no Partner State can actually stand report, most of the things are such that most and say that it is up to date with of the people involved are not serious, most contributions. This is the point where we of the people involved might not have the must make sure that we ask – I can see that required experience or qualities and I would the committee has recommended that the like to point out a few things. EAC Council of Ministers needs to do more in terms of being at the forefront on this On page three, you will find the last two issue. paragraphs saying that during the review and consideration of the Audit Commission

Tuesday 22 November 2016 East African Legislative Assembly Debates reports, the EAC management considered Fisheries organ – I am talking about the that there is lack of coherence and institutions that we have as projects. Lake complementarity in the Finance department Victoria Fisheries Organisation, Lake hence finance imprudence. They end up Victoria Environmental, Lake Victoria saying that, indeed, there is lack of proper Basin Commission, CASSOA, IUCEA, recording of financial transactions and Kiswahili Commission – It looks like we general lack of capability to exercise have a lot in our hands. Maybe the time has supervisory roles in the Finance come that some of the things have to be department. The adjustments to the pruned in order for us to go on. financial statements are an indicator of failure of the East African Community top I am just thinking about it off head but I management to supervise its departments think that sometime later I might think of and laxity of the Finance staff and internal coming up with a concrete suggestion on audit to do their work. how to deal with these things because we are continuing to fail. Not only that, we have another one on page four under the EAC Council of Ministers Mr Speaker, I would like to end by saying and what they are required to do, at the end that let everyone concerned think about of that paragraph it says, most important to pruning or what we have in our hands so note is that the accounting function at the that we can be able to proceed. Otherwise, EAC has been queried for the last four it looks like we are bound to fail. Thank years. If it is not due to partial you, Mr Speaker. understaffing, it is the accounting system or under funding. All this points to one thing. The Speaker: Thank you, hon. Taslima.

The last two examples that I would like to Ms Valerie Nyirahabineza (Rwanda): give are on page five, item 4.1.7 which talks Thank you very much, Mr Speaker for about procurement matters. It says, “Every giving me this opportunity to contribute to year from 2010 to 2011 – we were not here this very important motion. From the onset, in 2010 – up to 2014-2015, the Audit let me also join my colleagues in thanking Commission reports have queried His Excellency President Uhuru Kenyatta procurement in the EAC and there have of the Republic of Kenya, the Government, been irregularities in the procurement of the Parliament and the people of Kenya and goods and services and contravention of the chapter of Kenya for the warm welcome financial rules and regulations, 2012, the and hospitality we have enjoyed since our EAC procurement policies and procedure arrival here in Kenya. manual 2011.” It ends by saying, “Most procurements like awarding tenders, Mr Speaker, I will be very brief because my procurement of hotel services at the EAC colleagues have ably explained most of the are done without justification, without things that I wanted to highlight. quorum and without and exceed approved thresholds.” I am not a member of the Accounts Committee. However, like all my These are the things that one wonders colleagues who spoke before me put it about. We have to ask ourselves, do we rightly, we are talking to ourselves. This proceed the way we are where one is report can be considered as an extract of the convinced to think that we might be holding Audit report we debated a few weeks ago. far too much in our hands? As time goes on, The recommendations are more or less the our ability to fund goes on failing. What we same so in conclusion, if you go through a have in terms of funding is Lake Victoria different report, if you go through several

Tuesday 22 November 2016 East African Legislative Assembly Debates recommendations that are contained in the State to serve on the EAC Audit and Risk report, you can conclude that there is a very Committee. big structural problem at EAC. Under (7), the committee’s secretary shall I am saying structural because the Chair of be the head of the Internal Audit of EAC the Committee on Accounts started by Secretariat who shall be an ex-officio showing the kind of presentation that was member. Obviously if the secretary is the made by the Committee on Accounts head of the Internal Audit of the EAC and whereby he stated various problems and this head is answerable to the Secretary one of them being non-performance and General. The secretary is constrained for non-adherence to the procedural manual. calling for these meetings by virtue of his position so obviously this needs to be Mr Speaker, I remember that this changed. Thank you. Assembly, from the First to the Third, has been calling upon the Council of Ministers Ms Nyirahabineza: Thank you, Mr and the Secretariat to develop many Speaker and thank you, hon. Dora. This manuals because we wanted to cue a confirms what I am mentioning to you. mischief and because we wanted things to be done in a smooth way. Luckily, the Mr Speaker, there is one aspect which is Council has been proactive, and many always saddening me and it is about budget manuals of procedures have been performance. The Community negotiates developed and are now under application. projects. The aim is to uplift the lives of However, they are being breached. East Africans. Unfortunately it is always Unfortunately, there is impunity and that is said in each report that we debate here in why I am saying that there is a structural this House that there is under performance issue because if one staff is no adhering to simply because there is underutilisation of the directives contained in one of the budgeted funds and the poor performance manuals, he cannot be punished, either by has always been attributed to unrealistic the Secretary General or the Council, and project budgeting. for us, the Assembly, we make recommendations every day, which are not This means that either we have too much implemented at all. money and the plans are not matching with the money or we are requesting for less There is a serious structural issue. I do not money. Of course, there are problems of know whether it needs Treaty amendments. budget cycles that have been highlighted in In any case, it is as if the Community this report but most of the time, it means belongs to all of us and to nobody at the that the plans that we develop and make for same time, and I am very sorry to say this - those projects to be implemented do not (Interruption). match with the amount of money we have and this is a serious issue. Ms Byamukama: Mr Speaker, the information I would like to give to my I think we should re-visit our mandate and sister, hon. Valerie, is that when you look at our function and do something about this. I the East African Community Audit and represented Your Excellency last week in Risk Committee Charter, and you look at Kisumu and I had an opportunity to discuss section 4 on appointment and composition with a few development partners. Many of the EAC Audit and Risk Committee, you people are willing to come in EAC because will find that it is the Council, which they see a big opportunity not only to uplift appoints one member from each Partner the lives of the citizens but also to make this

Tuesday 22 November 2016 East African Legislative Assembly Debates region a regional hub of investment and interest in matters of paramount importance whatever. at the Community.

Unfortunately, because these projects are I would like to start on a note of confidence. not well coordinated, it is a serious I think that this Community was built on problem. Some of them are still hesitating confidence in our capability to integrate to and that is why I want to finally mention achieve and become an international one point that I repeatedly mention powerhouse and improve the wellbeing of whenever I take the floor; this project East Africans. I think this was a dream of coordination unit. the founders of this Community, and it was decades ago. They were not really … In Arusha, we were told that terms of because when someone hears this year that reference of the staff that have to be under the United Nations Economic Commission this project management unit have been for Africa, the African Union, the African developed and I think there is something I Development Bank declare publicly that saw that staff are more or less there. They East Africa is the best integrated are not there. This project management unit community in Africa, and that East Africa is of paramount importance and has to be is the best performing community in Africa, established sooner than later. I think this commends what the Community is doing – (Applause). Mr Speaker, we have made recommendations here and the Council, in I think we owe this to all of you because its wisdom, accepted to fast track the you have been pushing the Community for establishment of this unit. If we want many excellence. development partners to come in the EAC to help us uplift this region, we should I would like to talk about this Audit report create this project management unit. which we discussed in September and that we are discussing today. Again, this report Mr Speaker, with those many words, I to me is almost about history because the support the report and I thank you for findings are traditional findings that you all giving me the opportunity. know about in terms of the capability of the Community to put in place the best The Speaker: Thank you so much, hon. practices in financial management, in Valerie. Honourable members, may I invite procurement, among other things. the Secretary General to say a few things? I Therefore, this is a report for 2014/2015. know that many members would like to debate this report but this debate, as I would like to consider it as an important members have agreed with me, is recurrent. report, which gave recommendations and It is more or less as if we are debating the which is asking or one thing; for the Audit Commission report that was tabled in management of the Community today to the House in the last plenary so I recognise implement the recommendations. I think the members who wanted to speak. this is what you have all been asking for.

The Secretary General of the East This report was not only discussed by African Community (Ambassador EALA but also extensively by the Council Liberat Mfumukeko): Thank you, Mr of Ministers and I would like to tell you Speaker. Through the Chairperson of the very confidently that we have been acting Council, I would like to thank this august upon these recommendations actually I Assembly for showing such a level of have been acting upon these

Tuesday 22 November 2016 East African Legislative Assembly Debates recommendations before we even discussed expecting to have a proposal early next them in September. year. So, hopefully, this will finally end the cycle in which we have been put and this is I would like to say very briefly that in 2016 the cycle of dependency on external funds – I will not tell you stories but what I am for the Community. going to tell you is important I think. The … of EAC is ISO 9001 certified. This Someone talked about the project certification is not given by EAC; it is an coordination unit. Honourable members, I international standard. This means that we would like to tell you that the ad hoc project are making some progress towards best coordination unit was set up. They have practices in accounting and finance. even produced their reports and they are going to be presenting to the donors, at the In June 2016, we passed the fiduciary risk end of this month, what they have been assessment and this is very important doing for these last few months. because all our donors are aligned with the fiduciary risk assessment of the European Just a few days ago on 11 November, we Union. I will tell you a little bit later that I had a meeting in Dar es Salaam with all our think we are now starting to yield fruits of donors and they decided that they are going that work which was done in succeeding the to support a number of positions. They are assessment of EU. going to help us establish the project coordination unit. As of today, we received The Council of Ministers recently the first proposal of … and we are doing established a number of positions. They this with USAID. They have agreed to fund established two positions for internal audit three positions for the coordination unit so so we can recruit two internal auditors this we are making some progress. year. We are very happy about that. They have also established a position of risk I would like to set my intervention on a management coordinator. If you would point of optimism. This year 2016, we have remember, a few months ago, we were not signed for 85 million Euros with the EU. I talking about established positions. We signed one week ago for US$ 194 million were talking about trying to get some with USAID. I am going to sign tomorrow money in the Partnership Fund to be able to 40 million Euros with Germany. We signed recruit, on a short-term basis, some of these about two months ago with China for US$ positions. Now Council establishes them. 2.2 million and this money was remitted. Four other donors have come and The institutional review was adopted. I am committed and they have given the money sure you all know about the institutional to the Partnership Fund. review, you debated it on several occasions but this will unlock a number of things for Back in May, we had zero money on the us in terms of acquiring the necessary partnership Fund but now we have four of resources to operate more efficiently in the them who have remitted money to that fund Community. so we are making progress and as far as I am concerned, I do not have any reason to You know that the EAC has made be hopeless when it comes to the significant progress towards setting up Community. I think all achievements we sustainable financing mechanisms. You have been talking about when we refer to know that we have been working on this for the Community have been possible because many years, there were many meetings last we have capable people. year and now we know that there is a meeting in December and the Summit is

Tuesday 22 November 2016 East African Legislative Assembly Debates

In your supervisory role, you have done an of Ministers and we said that this will be excellent job and I think that in Arusha we through video conferencing and the have very capable people, regardless of the Secretary General knows about this. challenges. They need to be empowered, Therefore, I can just promise members of we need to look deeply into what we can do Parliament that the members of the Audit to provide the necessary resources to the and Risk Commission do not fear the EAC Community but all that I can promise you ministers or the Council because this is that we see the challenges, we know that committee is formed by the Council so they there are recommendations and we are are supposed to assist us. They cannot fear going to improve the Community. Thank us because we directed them to do the job. you. Through doing the job, they assist us.

The Speaker: Thank you so much, We assure you that they will do the job and honourable Secretary-General. May I invite we will do the follow up of implementation the Chair, Council of Ministers to say a few of the recommendations. I beg to submit. things before I invite the Chair of the The Speaker: Chair, before you take your committee to respond to the debate of the seat, the Secretary General has excellently report? underscored the progress of funding from development partner but this report also The Deputy Minister for Foreign Affairs highlights very detailed remittances from and East African Cooperation, Tanzania the Partner States. May you please allay the (Dr Susan Kolimba) (Ex-Officio): Mr fears of the Assembly and the public Speaker, after what the Secretary General particularly on the side of our Partner States has responded, I will just say to the other than the development partners? honourable members of the Parliament that as we have discussed this report and the Dr Kolimba: As the Secretary General had same recommendations appeared in the last said we want to assure you that we are session, I promised this Assembly that the doing well. Yes, the situation before the Council will make follow up with the Zanzibar session was bad but now the Secretariat and just to inform them we have donors are coming back, as you have heard decided and instructed the Secretariat from the Secretary General. In addition, for through the SG to make sure that they give the Partner States, in October, the sectoral us the implementation status of each Committee on Planning sat and reminded recommendation which was made through each Partner State to make sure that they the Audit Committee report and also the complete their contributions by December. Audit and Risk Committee. So far, we are waiting for the contribution We have agreed that to make sure that these from Tanzania, which is coming as well as recommendations, which are agreed or that from Burundi. I thank you. directed by Council, are implemented and those directives or recommendations, The Speaker: Thank you so much, Chair, which were agreed to in the Assembly and Council of Ministers for that excellent recommended by the Council, are submission. These kinds of information implemented, we want to have the report on make the Assembly feel that the integration each month of what has happened on the is on course. Thank you so much. Chair of recommendations. The SG is here and even the committee. yesterday, we sat again to remind him so we expect that in December we will get the first Mr Ngendakumana: I thank you, Mr report to the Council. We will have the Speaker. Before I proceed, I would like to extra ordinary meeting of the EAC Council bring to the attention of the House that

Tuesday 22 November 2016 East African Legislative Assembly Debates things are not as bad in this Community as I when there is reallocation in terms of it appears in our countries. The fact is that budget line so you find that there is a budget we are not interested in what is going well line which has been utilised on another when we are doing our business. We just budget. If you have budgeted for a certain point out the areas where things are going amount of money and it is above the wrong, when there is need to raise the red budgeted amount because it has been drawn flag. from somewhere else. The over and above expenditure is Another observation is that you highlighted explained in two ways and one is the poor that all the queries contained in this report performance in projects. When we talk are the same with the report of the financial about poor performance, there was a statements of the last year 2014/2015. The budget, it has not been utilised so it is … fact is that we wanted to ensure that we That is what the committee would like to have seen the same things with the Audit say. and Risk Committee because we have been the Audit Commission report. They did the Coming back to the different contributions, same and reported the same observations as let us begin with the submission of the we highlighted in our report. That is why Secretary General. As I was saying, things what you see here was extracted from our are not as bad as they appear to be in our financial review report. accounts report. We would like to inform the House that the Accounts Committee Hon. Dora asked about the risk. I think that liberalised the submission of the Secretary there is no risk to harm this Community. If General that we refer to the Audit it was, it should have been highlighted in Commission report. The submission of the the Audit Commission report so I think that Secretary General will be confirmed in the there is no risk or potential risk. However, report of the Audit Commission for the FY wherever there is a gap, however minor, we 2015/2016. (Interruption) highlight it to ensure that we are improving the way we are doing things. (Interruption) Ms Nyirahabineza: Thank you, Mr Speaker. One is just a clarification from the Ms Byamukama: With due respect, Mr Chair when he said that there is no risk. I Speaker, when you look at the East African want to read what is underscored on page Community Audit and Risk Committee 10 under slow pace in implementation of Charter number six on risk management, Audit and Risk Committee one of the requirements is that this recommendations. “The Audit and Risk committee advises on effective Committee informed the Committee on implementation of the risk management Accounts that for the few times it has met to framework policy and strategy. So I was review the Audit Commission reports, seeing it in this light that maybe when they several recommendations have been report, not only should they highlight the drawn. It is however disappointing that aspect of audit but they should also look at only one recommendation has been the aspect of risk because their name by implemented in a period of two years.” their very nature requires them to do so in accordance with this charter. That is what I How do you explain this? wanted to highlight. The Speaker: I can see the member of the Mr Ngendakumana: About the shortfall in committee informing the Chair. Hon. funding which was supposed to be in Mulengani, proceed. contradiction with the over expenditure, what does this mean? The over expenditure

Tuesday 22 November 2016 East African Legislative Assembly Debates

Mr Mulengani: Indeed sir I am informing Another thing is about the convening of the Chair to add on his submission that not meetings of the Audit and Risk Committee. relying to the Secretary General’s verbal The Secretary General convenes their submission only but the audited accounts is meetings. We request that the Secretariat generated from the precedence of provides a budget to the Audit and Risk submissions of Secretary Generals on this Committee and let them do their business floor that have not been consistent in terms and convene their meetings as per their of implementation. annual work plans nit waiting for the Secretary General to convene their meeting. In addition to what hon. Valerie was The Chair of the Audit and Risk Committee informing the Chair regarding what the may be able to convene the meeting as per Audit and Risk Committee told the their annual work plan then this can move. committee that out of all the recommendations that they made, only one At the end of the day, we concluded that the – This is a new creature; it is not old. We Council of Ministers receives all have never captured this anywhere in our information by the report of the Audit and reports on this floor that the Audit and risk Risk Committee and this report contains Committee makes recommendations to the elements of the internal audit report. That is Council. Thank you, Mr Speaker. one source of information.

Mr Ngendakumana: As I was saying, the There is also a recommendation of the different recommendations from this House House and we came to the conclusion that have been brought to the attention of the all the responsibilities of the improvement Council. What I may highlight here is that of the Community is in your hands because when the Council meets the audit and Risk it is up to you to instruct the Secretary committee, we have been told that they are General to put into implementation all the not given enough time to brief you deeply recommendations of this House. on the contents of the Audit Commission report. Consequently, we have seen that I would like to thank all the members who when we come up with our report, the contributed to this report beginning with Council looks like they are not very hon. Shy-Rose, hon. Mulengani, hon. informed with the contents of the Audit Mumbi, hon. Sebalu, hon. Rwigema, hon. Commission reports. Dora, hon. Nancy, hon. Kimbisa, hon. Taslima, hon. Valerie, honourable SG, There is a request to the ministers to give to Chair, Council of Ministers. the Audit and Risk Committee enough time so that you are well informed and know With this, I beg that this report be adopted. exactly the contents of the Audit Commission report so that when we come The Speaker: Thank you so much, hon. up with recommendations, they are not Jeremie for the good response to the good new. report.

The second is that we have been asking Honourable members, the motion before many times that the internal audit unit be the House is that the report of the upgraded to the level of directorate because Committee on Accounts on the meeting if you are a junior officer then you come to with the Audit and Risk Committee be investigation, you are not comfortable. We adopted. would like that this be taken as an urgent matter to upgrade the internal audit unit to (Question put and agreed to.) the level of a directorate.

Tuesday 22 November 2016 East African Legislative Assembly Debates

MOTION TO CONDOLE THE DEATH OF integration process and … in his capacity AND PAY TRIBUTE TO THE LATE RT. as Minister of East African Cooperation HON. SAMUEL SITTA from 2010 to 2015;

Mr Jeremie Ngendakumana (Burundi): RECOGNISING the amiable and strong Mr Speaker, I beg to move character and style of leadership he exhibited in various capacities and That this Assembly do resolve to positions he held, condole the death of and pay tribute to the lake Rt. hon. Samuel Sitta. NOW THEREFORE, this House do resolve to: I beg to move. 1. Hereby express its heartfelt condolences to the family, the The Speaker: Thank you. Seconders? Hon. Parliament, government, the people of Shy-Rose, hon. Ussi, hon. Twaha and all Tanzania and the entire East African the members standing. Hon. Jeremie, fraternity for the loss of this gallant son proceed with your motion. of East Africa; 2. Pay tribute to the late Rt. hon. Samuel Mr Ngendakumana: Motion of the Sitta for his outstanding selfless service Assembly to pay tribute to the late Rt. hon. to the people of Tanzania and the East Samuel Sitta, former Ex-officio member of African Community.” EALA and Speaker of the Parliament of the United Republic of Tanzania. Mr Speaker, I beg to move.

Mr Speaker, The Speaker: Thank you so much, hon. Jeremie. Honourable members, would you “The Assembly, having received with shock like to say something in justification of the news of passing away of the Rt. hon. your motion before I open debate? Samuel Sitta, former ex-officio member of the East African Legislative Assembly, Mr Ngendakumana: Mr Speaker, Rt. hon. Minister of the East African Cooperation Samuel John Sitta is recognised in Tanzania from the United Republic of Tanzania and as a politician of high profile. He was born Speaker of Parliament of the United on 18 December 1942 and passed away on Republic of Tanzania; November 7, 2016.

NOTING that hon. Samuel Sitta was the He served as a minister, as a Speaker of the Speaker of the National Assembly of the National Assembly. He has also been United Republic of Tanzania from 2005- chairing the Constitutional Assembly, 2010 and he is credited for his enormous which is very important in Tanzania. contribution to the growth of parliamentary democracy in the region; He is recognised as a mentor to the young politicians in Tanzania. RECALLING the active role that he played in … I would like to highlight that the Parliament of Tanzania requested to get his body in the Rt. hon. Samuel Sitta was the arm and the Parliament which as a sign of seeking an key factor in the East African Community opportunity to pay him tribute. That is why, and exhibited strong commitment and faith in my opinion, Samuel John Sitta deserves in the EAC integration process by to be paid tribute by this House as our own. contributing immensely to the region’s

Tuesday 22 November 2016 East African Legislative Assembly Debates

I will not go so far, maybe some other fourth phase government, His Excellency members know Samuel Sitta more and they Mheshimiwa Jakaya Kikwete. will elaborate more. With this, Mr Speaker, I beg that this House debates and adopts this As a Minister for Works in the late ‘70s, motion to pay tribute to the Rt. hon. Samuel hon. Sitta had built Air Tanzania. This he John Sitta. managed to do after the collapse of the former East African Community by buying The Speaker: Thank you so much, hon. planes for Air Tanzania from Canada. Jeremie. Honourable members, the motion before this House is that this Assembly do Mr Speaker, hon. Sitta left a good legacy resolve to condole the death and pay tribute during his ministerial duties. He was very to the late Rt. hon. Samuel Sitta. Debate is generous in giving good advice to young open. and old politicians. Even our current Prime Before hon. Shy-Rose, the seconder of this Minister of Tanzania, hon. Majaliwa motion, speaks, I would like to inform this Kassim Majaliwa has confessed that hon. Assembly that when the Right honourable Sitta was a good leader, a good adviser, not passed on and the news came to us in only to him but also to many other people Arusha, I sent a condolence message on when he was the district commissioner of your behalf, which was graciously Urambo District. Likewise, he mentored delivered by hon. Kimbisa on my behalf. It many of us and a good number of young was presented to the Rt. hon. Ndugai, the and upcoming politicians. Speaker of the National Assembly of the United Republic of Tanzania. Therefore, The late Sitta as a Speaker of Tanzania we are just doing our part as a Parliament to National Assembly from 2005 to 2010 which he was a member. contributed a lot to the growth of parliamentary democracy not only in Ms Shy-Rose Bhanji (Tanzania): Thank Tanzania but in our region as well. During you, Mr Speaker. I feel honoured and his speakership, he made sure to oversee his privileged to be the main seconder of this slogan is implemented. His slogan was, motion to pay tribute to the late Rt. hon. ‘Standard and speed’. Samuel Sitta, former ex-officio member of EALA and Speaker of the United Republic For those of us who were outside Tanzania of Tanzania. Parliament, he was our admiration and he became so inspirational that everyone in Mr Speaker, on 7 November 2016, Tanzania started following parliamentary Tanzania lost a political tiger, a seasoned debates. He inspired many of us. politician, and a good representative who was a former Urambo Constituency Today we remember hon. Sitta as not just a Member of Parliament. distinguished senior politician from Tanzania but also a distinguished and very Mr Speaker, hon. Sitta had spent more than able member of EALA. Hon. Sitta had half of his entire life as a public servant. He served as a full Cabinet minister in the served as a senior government minister Ministry of East African Cooperation for under four governments starting with Baba almost five years. During his ministerial wa Taifa Mwalimu Julius Kambarage duty, two important Bills were passed in Nyerere, His Excellency, under the second EALA Assembly: the One Stop Border Post phase government under His Excellency Bill and the Vehicle Load Control Bill. Mzee Ali Hassan Mwinyi, third phase government Mzee Benjamin Mkapa and the We recognise his contribution in the passage of these two important Bills. Mr

Tuesday 22 November 2016 East African Legislative Assembly Debates

Speaker, these Bills are very key in the Mr Speaker, we thank you also for your integration of East Africa because trade has message of condolence because we were improved significantly and we all know that around and your condolences were read in trade is very key in integration. the Chamber. We thank you for that.

As a Minister of EAC from Tanzania, he Hon. Samuel Sitta was a mentor for many was a key link between EALA and EALA and he was actually one of my biggest Tanzania MPs together. He was also an supporters personally as a family friend important link to EALA Tanzania chapter because he was the one who mentored me because it was during his time that he when I wanted to come to EALA so he brought in a lot of positive changes and contributed to my political career. As you impact on EAC affairs and EALA and the know, I was just starting. national Parliament of Tanzania. Let me also take this opportunity to give my It was during his time as the Minister of condolences to the members of Parliament EAC that EALA Tanzania chapter got an in the United Republic of Tanzania through official invitation to attend to the Budget our Chair, Council because on the same day session in Dodoma. Initially it as only the when we were waiting to say good-bye to Chair of the chapter who was invited to go hon. Samuel Sitta, there was another to Dodoma so we do recognise and Member of Parliament who died suddenly appreciate his contribution to EALA. and he was participating in the parliamentary session. Hon. Hasidali was Finally, hon. Sitta was a role model because also a member of the Inter Parliamentary as a young politician he was a role model to games. You might know him as well. He young politicians. When he became a was a Member of Parliament in the United senior politician, he became a mentor to Republic of Tanzania from Dimani, many and this is how we are supposed to Zanzibar and a certified FIFA referee as live in this world. well. Those who play football might know him very well. With that, I pray that his soul rests in peace. I take this opportunity to give our Ms Maryam Ussi Yahya (Tanzania): condolences to the Members of Parliament Thank you very much, Mr Speaker. Let me and for the Chair, Council to pass on our also take this opportunity to thank the condolences. I thank you, Mr Speaker. people of Kenya, the Kenya chapter, the Kenya government and the Kenya The Speaker: Thank you so much. Parliament for their warm welcome to Nairobi. We always feel at home. Mr Charles Makongoro Nyerere (Tanzania): Thank you, Mr Speaker. Mr Speaker, I will not talk much but I will Briefly and very quickly, I join hands with just say that the shocking passing of Rt. my colleagues who said asante sana to hon. Samuel Sitta was very sad because as Kenya, through His Excellency Uhuru the mover of the motion said, he is a historic Kenyatta for receiving us, through the figure in the United Republic of Tanzania. Speaker of the Parliament of Kenya for However, of recent, he was a most historic receiving us. I like Nairobi; the weather is figure because he was also the honourable good. I also hear that even the nightlife is Speaker for the constitutional Parliament in quite good – (Laughter). Tanzania that was responsible for a new Coming back to the weather, it is one of the Constitution in Tanzania. East African capitals where you can go, put on your suit and tie without thinking twice

Tuesday 22 November 2016 East African Legislative Assembly Debates about the weather, as compared to some executive committee, which normally coastal East African towns and cities where decides, through this party, if hon. Kimbisa you sweat a lot. It is difficult for you to is going to come back here or hon. Shy- sweat in Nairobi. Love the weather, thank Rose or even me. They were the ones who you very much. had decided that the Speaker becomes Samuel Sitta and they expected from … He I support this motion, I thank hon. Jeremie shut them down and said, why? Therefore, for bringing it, and I thank hon. Shy-Rose there was this special sitting for two days. Bhanji for seconding it. I would like to use Every member was saying, we want Sitta’s a few words to remember hon. Samuel Sitta neck, including another 12 for one particular thing that I will never parliamentarians who included hon. forget. Mwakyembe. They were trying to be traitors of the government of Chama Cha I am a Tanzanian and Tanzania has had Mapinduzi, they speak whatever they want several Speakers running the Parliament of in the parliament but Sitta changed the the United Republic of Tanzania. Honestly, rules. for many years, the Parliament of the United Republic of Tanzania was run like Hon. Sitta allowed one thing that is some sort of a group of rubber stampers. happening now. There are some issues that They rubber stamp what is brought to them if you discuss in Parliament, they turn all and in only the five years of which hon. the parliamentarians to switch to patriotism Sitta was the speaker of this Parliament, he and nationalism and the government can do completely changed the history of the nothing about it. This I say is a tribute to Parliament of the United Republic of Sitta. Tanzania. That is what I thought I should share with He allowed parliamentarians to question you today. Thank you very much. the government of Tanzania. He allowed parliamentarians to say what they felt in The Speaker: Thank you so much, hon. those five years. I was not in Parliament but Makongoro. I was following form outside the Parliament. I remember very well as a Ms Frederic Ngenzebuhoro (Burundi): politician that I was the regional Thank you, Mr Speaker for giving me the chairperson of Chama cha Mapinduzi, opportunity to contribute to this very which is the ruling party of Tanzania since important motion. it was born to date and it will continue for quite some time. Hon. Twaha Taslima, you Before I go ahead, I would like to join need to wait a little bit longer. others to thank the people of Kenya, His Excellency Uhuru Kenyatta the president of Mr Speaker, being the chairperson of Mara the Republic of Kenya, the national Region and according to the Constitution of Assembly of Kenya, and the EALA chapter Seychelles, I am automatically a member of of Kenya for all they have done to facilitate the National Executive Committee of our stay in this beautiful city of Nairobi. Chama Cha Mapinduzi. Mr Speaker, personally I would like to say When hon. Sitta was allowing free debate that I have been very keen to what the late for the first time in the history of my hon. Sitta had done for this House. I will country of Tanzania, it caused loggerheads never forget what he did especially when I and some were ready to punish hon. Sitta’s was chairing the Legal Committee, as he career very hard. It is this national

Tuesday 22 November 2016 East African Legislative Assembly Debates was very cooperative. I learnt a lot form his I would like to say that this Community has experience. lost one of its greatest sons, one of its important implementers of its integration. Mr Speaker, I would like to say that hon. That was the will of God and no one could Sitta will never be forgotten in this oppose it. Community because he has played a very critical role in the integration of this We were given a very important person in Community. this Community and I would like to take this opportunity to thank hon. Jeremie for Mr Speaker, let me recall that it is hon. bringing this important motion which Sitta, on behalf of Tanzania, who fast shows that this House is grateful for all hon. tracked the implementation of the East Sitta has done to this Community. African Community Customs Union Protocol. Further to what the honourable Before I conclude, I would like to say that has said, I would like to give two examples. when I was chairing the Legal Rules and Privileges Committee at that time, it was One, the EAC integration now has what we hon. Sitta who contributed a lot to this Bill, call the Single Customs Territory because which is now enacted. I would like to say of him. It is now a reality thanks to him. that we must be grateful to him because he contributed a lot and once again, I support I would like to say that no one in this this motion. Community, especially the business community, would never forget that Before I leave tis floor, I would like to ask mechanism because now they are reaping my college, hon. Jeremie that the title, the benefits of the single customs territory “Motion of the Assembly paying tribute to and trade is facilitated. the late Rt. hon. Samuel John Sitta from …” Please put it so that it can – the word The second example I would like to give is “former” is not worthy. Thank you, Mr in January 2015. Rt. hon. Sitta, then Speaker. Chairperson f Council of Ministers brought in this House a very important Bill called The Speaker: Thank you so much, hon. the East African Community Elimination of Jeremie. Non-Tariff Barriers. This was of course to implement article 13 of the Protocol on The Deputy Minister for Foreign Affairs EAC Customs Union and it intended to and East African Cooperation, Tanzania establish a mechanism for identifying and (Dr Susan Kolimba) (Ex-Officio): Thank monitoring the removal of non-tariff you very much, Mr Speaker for giving me barriers in Partner Sates. That Bill is now the floor. First of all, I would like to thank enacted and you can imagine how it is very the government of Kenya for the warm important in trading in this Community. We hospitality as usual which is accorded to all must be very grateful to him for that. of us.

Mr Speaker, I said that this Community Mr Speaker, I would like to take a few would never forget the role he played in the minutes to say something on this motion. I integration. He played a very important role worked with hon. Sitta and I really enjoyed in the implementation of the Common working with him. Market Protocol and a very critical role in the negotiations on the East African First of all, when I was nominated minister, Monetary Union Protocol. I know how it he was a member of the Council and he was hard but he played a critical role there.

Tuesday 22 November 2016 East African Legislative Assembly Debates received me well. He coached me and he Another thing that I learnt about the late used to say that I am his sister. hon. Sitta is that I happened to go to Urambo, which was his constituency and I I had many opportunities to interact with found there was a big huge office and I him. He was a very good negotiator, a very asked, what is this office? They said, this is good orator. If hon. Speaker gives you his an office of the Member of Parliament of word, he will do it. He was very committed Urambo who is Mr Sitta. I asked, when was to the integration process. He was someone it built and who built it? They said who would feel very bad when he hears that everything as built from his own pocket. something is not going on well in Tanzania So, he constructed that building and it will or if people complain in Tanzania. He be there always for him to be remembered. would intervene and sort out the issues. Another thing is that during his time in the Mr Speaker, when I knew that hon. Sitta Parliament when he was the Speaker of the was dead, I was in Kisumu attending a Tanzanian Parliament, what hon. sectoral Council on … I travelled to Makongoro tried to touch a bit on – because Tanzania for the funeral but unfortunately he wanted standards, he said, I want my when I reached Dar es Salaam, the body Parliament to have teeth to bite and some was taken to Murambo and I could not people in the quarters of Chama Cha attend the burial although I really wanted Mapinduzi were asking, what would you to. like to bite? Whom are you going to bite?

If I start talking about hon. Sitta, I will not People responded by saying that he could finish. I shared many things with him. I either bite the government of Chama Cha remember when this Northern Corridor Mapinduzi or Chama Cha Mapinduzi itself. started, he called … We were together That was commotion, as hon. Makongoro trying to understand what was going on. It was saying and he was almost punished out was as if the other side lined us but finally of the party but he had a lot of courage and we came to understand what it was, and I he stood on his word. will always miss hon. Sitta. Thank you very much, Mr Speaker. The last thing is that I would like to inform this august House that during his funeral in Mr Twaha Taslima (Tanzania): Thank Dodoma, almost every member of the you, Mr Speaker. I would like to thank hon. chapter of Tanzania, except one who was Jeremie for bringing this motion and I sick, went to Dodoma to represent members would like to say three things about the late of this august House at the funeral, and we hon. Sitta. represented you very well up to the end when he was being lowered in his grave. First of all, they had a good family. The Thank you very much, Mr speaker. wife, Margaret Sitta has been a MP for a long time. She was a MP while he was also The Speaker: Thank you, honourable a Member of Parliament. She was a members. Before I put the question, may minister while he was a minister. Last year we rise up for a minute to pay respect to the she was a minister of Education if I late Rt. hon. Sitta? remember well and she is now still a Member of Parliament. (The members rose and observed a moment of silence.) One of his five children is a mayor in Dar es Salaam and the family is stable and The Speaker: Honourable members, the flamboyant. motion before this House is that this

Tuesday 22 November 2016 East African Legislative Assembly Debates

Assembly do resolve to condole with the death and pay tribute to the late Rt. hon. Samuel Sitta. I put the question.

(Question put and agreed to.)

The Speaker: Thank you so much, honourable members for the business of today. Before I adjourn, I would like to remind you again that an internal memo has been circulated to all the members on mail and the subject is training during the EALA plenary in Nairobi.

This is to inform you that the training grounds have been secured at Nairobi Railway Club, which is next to Uhuru Park. There will be group transport to pick members from their hotels to the training grounds. Honourable members, please participate. I thank you so much.

The House is adjourned to tomorrow 2.30 p.m.

(The House rose at 5:30 p.m. and adjourned to Wednesday, 23 November 2016, at 2.30 p.m.)