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EAC Secretary General prioritises financial management, targets ‘tangible results’

Saturday September 03 2016

East African Community Secretary-General Liberat Mfumukeko has introduced cost-cutting measures and changes in operations at the Arusha headquarters, which he hopes will put the cash-strapped Secretariat on a strong financial footing and inspire fresh confidence with development partners.

Mr Mfumukeko expects to save up to $6 million a year in cost-cutting measures he has begun implementing.

In his first interview with The EastAfrican since he took office on April 26, Mr Mfumukeko said he will prioritise activities with direct impact on the livelihoods of East Africans in addition to the upstream policy work the Secretariat has been engaged in.

“Let us go back to the basics. The overall direction is to put money where we can respond to the basic needs of the people,” he said.

The first four months of his tenure have been far from smooth, with strong opposition to his management style and stringent financial controls.

READ: Mfumukeko takes over EAC with $11m budget deficit

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He has also faced criticism from the opposition in Burundi for what is believed to be his political leaning as a former insider in the Burundian government, where he once served as President Pierre Nkurunziza’s advisor on economic affairs.

Politically, his position as Secretary-General is precarious, coming at a time when his country is facing a political crisis following the president’s decision to extend his stay in power.

The opposition is suspicious of his role in the Dialogue on the Burundi Peace Process chaired by Uganda’s President Yoweri Museveni, and the talks being led by Tanzania former President Benjamin Mkapa.

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Then there is the question of bilateral relations between Rwanda and Burundi, which he says needs an urgent solution “so that meetings can be held in accordance with the EAC calendar of activities.” Again, the situation is believed to present a conflict of interest for Mr Mfumukeko.

Coincidentally, it was on the day Mr Mfumukeko took office that Tanzania’s President John Magufuli, who is the chairman of the EAC, strongly criticised the Secretariat for its excesses, and told its officers to clean up their act.

“Stop being a parasite,” President Magufuli warned the body.

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

“I immediately started looking at how to reduce costs to salvage our image. I involved all staff in looking at our financial position and coming up with measures to cut costs. So, it has been a consultative process,” said Mr Mfumukeko.

However, implementation of reforms could prove difficult. Already, 11 project staff have filed a case in the East African Court of Justice, challenging Mr Mfumukeko’s decision to terminate their contracts.

READ: EAC employees in court to protect their contracts

It is a scenario expected to repeat itself as Mr Mfumukeko implements measures contained in an administrative circular titled “Expenditure Rationalisation Reforms.”

The document, provides for, among other things, termination of staff contracts, “where a project faces delayed payments for more than three months without communication for the delay or commitment on further disbursement from the development partner.”

His first target for cost-cutting was travel — with good reasons. Mr Mfumukeko assumed office against the backdrop of a damning audit report that revealed massive irregularities. The report highlighted travel as one of the trouble spots.

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To cut travel costs, the Secretary General has reduced the duration of external meetings, as well as the number of participants. For example, no staff member will be allowed to be away from their duty station for more than 50 per cent of the year.

In a circular to staff, dated May 18, 2016, Mr Mfumukeko said technical meetings should not exceed four working days and the number of delegates from each partner state who can be facilitated through the EAC budget should not exceed two. In addition, EAC delegations to technical meetings should not exceed three people.

The measures also include reductions of per diem for travel associated with donor-funded projects to bring the rates at par with those of the funding agencies, as well as a more stringent travel approval system.

“But these are areas that touch on people’s bread and butter and the changes are not easy for them. President Magufuli demanded better management. Well, better management comes at a cost,” he noted.

Mr Mfumukeko has also moved to tighten controls in procurement after it emerged that insurance covers for staff medical and life insurance, worth about $1 million had been awarded without adherence to procedure.

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