EAC budget crisis:TZ, Congo  reject $103m supplementary 

The East African Community (EAC) is facing a stalemate over its budget for the Financial Year 2023/24 after partner states Democratic Republic of Congo (DRC) and Tanzania rejected the budget. 

This, according to members, has paralyzed business of the Community and its institutions. 

In June, the East African Legislative Assembly (Eala) passed a $103m budget to be implemented in the current financial year. 

In a twist of events, the DRC in a July 5 letter, and later Tanzania, rejected the budgets and declined to assent to appropriation bills, throwing the implementation into a standstill. 

In a July 27 letter to the Clerk of Eala, Tanzania’s minister for Foreign Affairs and EA Cooperation, Ms Lawrence Stergomena, said they declined to assent to key appropriation bills due to what they term as inconsistencies. 

“We wish to inform you that the United Republic of Tanzania has observed the bills as approved by the Assembly are inconsistent with Budget ceilings that were approved by the Council of Ministers during its 41st Extraordinary Council Meeting,” the letter reads in part. 

“This is contrary to Article 59(2) and 132(1) and (2) of the Treaty, as read together with Regulation 18 of the EAC Financial Rules and Regulations (2012). To that effect, the United Republic of Tanzania wishes to withhold her assent,” the letter adds.

Earlier on July 5, DRC’s Permanent Representative to the EAC, Jean Pierre Massala, communicated his country’s objection to the budget, citing similar reasons and withholding assent to the EAC Appropriation Bill, 2023. 

The DRC was also aggrieved that the budget “affected organs and institutions to implement the directive on adoption of French and Kiswahili as official languages of the Community, and also failure to respect citizens awareness on EAC integration.”

Mr Kennedy Mukulia, the South Sudan’s Representative to the Eala, told this publication the effect of such decisions. 

“The community is supposed to shut down since there is no budget for the community to operate. If Congo rejects this budget, it means there will be no budget of the Community and the community will go into what we call a government shutdown, which is a very unfortunate situation,” he said. 

He added: “Any expense incurred now is ineligible and those involved will have breached the Community law…one immediate activity is the negotiation on the admission of Somali into the community scheduled for August 22- September 6 in Nairobi.” 

He, however, punched holes in the rejections by DRC and Tanzania on technicalities. For example, he argued that the rejection letters should be issued by June 30. He added that only heads of state can withhold assent to the bills. 

Some voices, however, point to individuals from the community itself, including the secretariat, influencing member states to reject the budget due to personal grievances.

Effects: ‘‘The Community is supposed to shut down since there is no budget for the Community to operate. If Congo rejects this budget, it means there will be no budget of the Community and the Community will go into what we call a government shutdown, which is a very unfortunate situation,’’ Mr Kennedy Mukulia, the South Sudan’s Representative to the Eala.