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  • on 22.12.2015
  • at 11:05 AM
  • by Kimberley Evans

EAC Secretariat coffers run dry as partner states default 0

The East African Community (EAC) Secretariat is in a cash crunch, with fears that the regional body may fail to pay its workers their December salaries, in addition to suspending its programmes.

A source at the Secretariat says the five member states have defaulted in remitting $30.9 million in budgetary support, leading to rising supplier debts and disruptions of its operations.

“There’re no funds even for December salaries if help does not come this week,” said the EAC official who preferred anonymity.

The money, according to sources, should have been credited to the EAC accounts by December 14.

Budgetary constraints in some of the countries and the political unrest in Burundi are some of the reasons believed to cause the delays in remitting the money.

In documents seen by The EastAfrican, Burundi is the leading defaulter followed by Tanzania, Rwanda, Kenya and Uganda in that order.

Burundi owes the regional body $11.2 million including last year’s arrears of $2.8 million, Tanzania’s arrears stand at $6.5 million and Rwanda’s debt is $6.3 million.

Kenya owes the EAC $4.2 million while Uganda’s debt is the lowest at $2.7 million.

The unremitted funds represent 74 per cent of the total $42 million budget for this financial year.

The EAC spokesperson, Richard Owora, told The EastAfrican on the phone from Uganda that the secretariat had already sent reminders to the partner states to remit their contributions.

Continue Reading on The East African

by Adam Ihucha

Photo Credits The East African

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