EAC secretariat saves Sh7bn on travel expenses

EAC secretariat saves Sh7bn on travel expenses

Arusha. Savings from travel expenditure at the East African Community (EAC) secretariat soared to $3.4 million (Sh7 billion) by February, this year, since May 2016 when cost-cutting measures were put in place.

During the nine months period, travel expenditure fell to $9.1 million in the period ending February 2017 compared to $12.5 million in the previous financial year (2015/2016), a drop of $3.4 million.

Travel expenditure include air tickets for EAC staff, the partner states delegates and other participants to EAC meetings as well as daily subsistence allowances (DSAs) for the same during the said period.

“Some of the most significant cost reductions were in expenditure on air tickets which dropped by $456,491,” said EAC secretary general Liberat Mfumukeko in a statement sent to newsrooms yesterday.

Air tickets for delegates and other participants invited to a myriad of EAC organised or sponsored meetings also declined by $408,273.

According to him, DSA for EAC staff also plunged from $4.5 million to $3.2 million over the same period, a difference of $1.36 million.

Expenditure on DSA for delegates to EAC meetings also went from $4.4 million to $3.5 million, a drop of $1.05 million. “Also worth noting is that the EAC overall travel budget has declined significantly over the past three financial years,” Mr Mfumukeko said.

The Community’s travel budget was $28.1 million and $28 million in 2014/2015 and 2015/2016 financial years respectively, declining to $21 million in the current fiscal year.

The secretariat has since April last year been undergoing administrative and institutional reforms aimed at cutting down on costs and reducing wastage in its expenditure.

Mr Mfumukeko, who spearheaded the reforms upon assuming office on April 25 last year, said the reforms have not only helped EAC to adapt to the reduction of its travel budget but also to the overall financial constraints the Community has been facing.

Most of the cost reduction measures were directed at curbing the travel costs by the EAC staff and sponsored delegates to attend meetings and seminars within the region and beyond.

Mr Mfumukeko has repeatedly said he would go ahead with the reforms that would reduce expenditure or misuse of funds at the EAC which has created concern on the donors who contribute more than a half of the organisation’s annual budget.

Among the measures taken are cutting down budget on consultancies and ensure that at least 25 per cent of EAC meetings use video conferencing facility which was officially launched in February last year and intended to save the organization a total of $12 million a year.

Per diems paid on travelling officials and delegates sponsored by EAC would also be rationalised to reflect the financial situation of the bloc.