Prime
Tread carefully on veto powers idea, EAC urged
Dar es Salaam. A proposal by a Kenyan parliamentary committee that some EAC members be granted veto powers could lead to unintended consequences, according to analysts, who have urged the bloc to tread carefully on the idea.
Comments by analysts in Tanzania followed the tabling of a report by the committee, which called for a review of the EAC Treaty in order to grant veto powers to partner states contributing the most to the regional bloc’s coffers.
The Committee on Regional Integration has recommended that partner states’ contributions be based on their ability to pay, and those who pay more be granted veto powers.
It also called on the EAC founding partner states – Tanzania, Kenya and Uganda – to consider paying outstanding dues owed by South Sudan and Burundi in the “big brother” spirit.
“The founding partner states could also consider paying contributions due for South Sudan and Burundi on the big brother basis and review the EAC Treaty to allow partner states’ contributions to be based on the ability to pay and retention of veto power by the highest paying partner states,” said the report.
The recommendations seek to address some financial challenges the bloc is facing, with available information showing that South Sudan and Burundi owe the EAC $48.66 million in arrears, which is 95 percent of the total outstanding amount.
Tanzania, Kenya, Uganda, and Rwanda have been paying their contributions in full.
“The current financial shortages occasioned by delayed partner state contributions and dwindling development partner support continue to adversely affect the performance of all EAC institutions, thus frustrating the implementation of key projects and programmes meant to uplift the lives of East Africans,” the report says.
But commenting on the matter yesterday, analysts said if not handled carefully, the decision to grant veto powers to some members on the basis of their financial muscle could lead to tensions that could endanger the bloc’s existence.
Some of those who spoke to The Citizen said adopting the European Union (EU) model would be ideal.
However, a senior official EAC, Mr Charles Kadonya, described the EU arrangement, in which Germany – which is Europe’s biggest economy – pays more than any other member in the 27-member bloc, as “risky”.
He said Germany had the biggest influence in decision-making and staff recruitment and added that a similar setup led to the EAC’s collapse back in 1977.
“In 1977 Kenya was the bloc’s largest economy and contributed the most to the EAC’s coffers. In my opinion, the consensus arrangement adopted after the bloc’s revival should continue,” Mr Kadonya said.
He added that the economies of EAC member states were fragile and influenced by wealthy nations, and the bloc’s existence would be in jeopardy if countries with veto powers were targeted.
Mr Kadonya said the said such countries could make decisions that were not in the interest of other EAC member states, and this could lead to the organisation’s collapse again.
He added that the consensus arrangement had played a key role in the EAC’s existence for over two decades.
A Tanzanian member of the East African Legislative Assembly (Eala), Dr Abdullah Hasnuu Makame, said veto powers was a policy issue that is supposed to be discussed by the EAC Council of Ministers.
He added that such a decision must be agreed by all members in line with the consensus arrangement.
“In essence, this arrangement provides all EAC member states with veto powers. Procedures require all countries to contribute equally to the budget in order to build equality and a state of interdependence.”
Der Makame said member nations attempted to establish the EAC Development Fund in 2006, and an idea was floated that contributions be based on member nations’ GDPs, populations, and levels of imports.
The veto powers proposal followed the admission of Burundi and South Sudan.
“We are supposed to be very careful about emulating the EU arrangement. We need to clearly understand the arrangement’s pros and cons after listening to those who are behind the idea,” he said.
East African Business Council (EABC) executive director John Kalisa said the equity principle was implemented by the bloc through the consensus structure, saying he did not see the merit of the veto power proposal.
“It will only succeed in sowing disputes within the community. In my view, the bloc should continue to embrace equality, diversity, and inclusion so that no one is left behind.
“What is important is to focus on market integration and increase the number of members. I don’t support the idea of veto powers. We need to support and raise the profile of the weak in order to enable them to become stronger,” Mr Kalisa said.
