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Mfumukeko takes over EAC with $11m budget deficit

Saturday April 30 2016
SNEAC30

Liberat Mfumukeko (right) took over the post of EAC Secretary-General from Richard Sezibera (left) on April 25, 2014. Tanzania's Foreign Affairs minister and chairman of the EAC Council of Ministers Augustine Mahiga looks on during the handover ceremony. PHOTO | FILBERT RWEYEMAMU

Liberat Mfumukeko last week took over the post of EAC Secretary-General with three things at the top of his agenda: A viable financing mechanism for the expanding East African Community; full implementation of all signed protocols, and inclusion of South Sudan in EAC activities.

Mr Mfumukeko, who succeeded Richard Sezibera on April 26, faces an $11 million deficit at the Secretariat, and his first assignment will be to ensure that the EAC restores confidence to donors and the partner states on the issue of financial management.

READ: Burundian handed EAC leadership

In his acceptance speech, Mr Mfumukeko, who was in charge of finance and administration for a year at the Secretariat, conceded that the EAC was going through challenging financial times and that forecasts for the month of June show a deficit of more than $11 million.

The situation has been aggravated by the fact that development partners, who account for close to 70 per cent of annual budget, are dragging their feet in disbursing funds to the Secretariat, due to allegations of financial malpractice.

Sweden, Belgium, Canada, Denmark, Finland, France, Germany, Japan, Norway and the United Kingdom contribute to EAC Partnership Fund. Others are the European Commission and the World Bank.

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Mr Mfumukeko as the new head of EAC Secretariat, an executive arm of the six partner states with 150 million plus people, is mandated to, among other things, develop strategies, spearhead negotiations with the donors and the government, local and international communities.

“I know work on sustainable financing of the EAC is advanced, but I need to push all stakeholders to accelerate its completion so that the community is financed up to its ambitions,” Mr Mfumukeko said.

He minced no words as he made it clear that his regime will propose “stringent measures” geared towards cost cutting, value for money, accountability and transparency. Mr Mfumukeko, cut the figure of a no-nonsense executive as he talked to the staff members he would be leading for the next five years.

“It will not be business as usual,” he said, adding; “The time for change has come. I’ve no doubt that we will take the bull by the horns and make tough choices,” he said.

READ: Magufuli to EAC Secretariat: Don’t be a parasite

As the new SG grapples with the administration issues, the business community has tasked him to ensure the cost of doing business is reduced.

“The cost of doing business in East Africa remains extremely high and a lot more still needs to be done,” said the acting executive director of the East African Business Council, Lilian Awinja, adding that the numerous non-tarrifs barriers that keep cropping up have become a perennial problem for the business community. 

She also said that the adoption rate for standards at partner states level is still very low and many more standards need to be harmonised. The private sector also wants partner states’ specific common external tariff stay applications be eliminated and uniform application of agreed CET rates enhanced.

The historic decision of 17th ordinary Summit of EAC Heads of State in Arusha to admit Juba into the community has created a robust Common Market of over 150 million people, a key factor in boosting trade and growth.

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