The East African Legislative Assembly is now calling on the Council of Ministers to invoke the relevant Treaty provisions to sanction the Partner States that have failed to meet their financial obligations to the Community.
In a report issued during the budget reading late last month indicated that due to the delayed or non-remittance of funds by some Partner States, the Community continues to make unrealistic budgets with most of the programs remaining unimplemented at end of each financial year.
“Whereas the Committee was informed that the Council of Ministers embarked on drafting a schedule of sanctions against non-compliant Partner States in 2020, this exercise is taking long to finalise,” said Gideon Gatpan EALA member from South Sudan.
EALA urged the Council of Ministers to expedite the finalisation of the schedule of sanctions against Partner States that fail to honour their obligations to the Community.
As of 14th June 2023, Burundi owes the community $9,430,352, Kenya $20, Rwanda $920,389, South Sudan which is the biggest defaulter $29,416,634, Tanzania $1,915, Uganda $1,268,498 and Democratic Republic of Congo which since joining the community is yet to remit any fund owing the community $7,352,124.
According to Article 143 of the Treaty on the establishment of the EAC, Partner State which defaults in meeting its financial and other obligations under the Treaty shall be subject to be sanctioned as the Summit may on the recommendation of the Council, determine.
The East African Community partner states remmit equal amount of funds for the community which represents almost 50 percent of the EAC budget.
Every Financial Year, partner states contribute $7,352,124 each to fund the community activities.