— On Tue, 2/24/09, Magaga Alot wrote:

From: Magaga Alot
Subject: PRESS STATEMENT – CLARIFICATION EAC FINANCIAL POSITION

Cc: “Magaga Alot”
Date: Tuesday, February 24, 2009, 2:04 AM
PRESS STATEMENT

CLARIFICATION ON THE EAC FINANCIAL POSITION

EAC Headquarters, Arusha, 24 February 2009:
Our attention has been drawn to the barrage of publicity in some sections of the region’s Media during the past week about a “Financial Crisis” in the EAC. We wish to clarify that there is no financial crisis in the EAC and there is no cause for alarm. In particular, all the programmes of the EAC are proceeding as planned and at no time has any of them been interrupted. The EAC is meeting all its financial obligations to suppliers and to staff. The EAC is not “cash-strapped”, or in any “dire financial straits” and funds have not “dried up” at the EAC as is being touted in some sections of the Media.

It is important to appreciate the following facts about the EAC’s Financial Management:-

1. Partner States’ contribution to the EAC Budget: In accordance with the Treaty for the Establishment of the East African Community, the Budget of the East African Community is made up of equal contributions by each of the five EAC Partner States, viz Kenya, Uganda, Tanzania, Rwanda and Burundi. Since the establishment of the East African Community in 1999, the Partner States have consistently honoured their Budget obligations and maintained a default free budget contribution performance. Over the period, EAC has stood out, among the regional or international organizations, with a default-free record. The EAC financial management has been exemplary and without reproach. EAC has consistently balanced its books and received a clean audit report from the independent audits every year.

2. Commitment to full remittance of funds: During the current FY 2008/09 which is the subject of the barrage of speculative publicity, it is true that the Partner States had fallen behind in their contributions and as at 19 February 2009 the records showed that they had remitted only 45% of the assessed Budget to total $ 10.5 million against the Budget of 23.4 million. However, the Partner States at the same time made a commitment that the outstanding balance shall be cleared before the end of the Financial Year. Indeed, at the same time as this whole issue of the presumed financial crisis in the EAC was raging in the Media, the Partner States made further payments of their contributions that had the effect of substantial reduction of the outstanding balance.

Magaga Alot

Head of Corporate Communications and Public Affairs, EAC

– – –
Date: Wed, 25 Feb 2009 02:34:49 -0800 [02/25/2009 04:34:49 AM CST]
From: Leo Odera Omolo
Subject: Fw: PRESS STATEMENT – CLARIFICATION EAC FINANCIAL POSITION