EAC-WORLD BANK PUBLIC FINANCIAL MANAGEMENT COORDINATION AND HARMONIZATION PROJECT IN EAC PARTNER STATES LAUNCHED

The World Bank's Financial Management Manager of East and Southern Africa, Ms. Patricia McKenzie  hands over the Grant Agreement to Dr. Enos Bukuku, as EAC and The World Bank Officers look on 

PRESS RELEASE

EAC-WORLD BANK PUBLIC FINANCIAL MANAGEMENT COORDINATION AND HARMONIZATION PROJECT IN EAC PARTNER STATES LAUNCHED

East African Community Secretariat, Arusha, Tanzania 4 November 2013: A two-year EAC-World Bank Public Financial Management Coordination and Harmonization Project in the Partner States was launched this morning at the EAC Headquarters by the Deputy Secretary General of the East African Community (EAC) in charge of Planning and Infrastructure Dr. Enos Bukuku. Present at the launch were Ms. Patricia McKenzie, the Financial Management Manager of East and Southern Africa at the World Bank, Mr. Patrick Umah Tete, the Senior Financial Management Specialist and Sector Leader Regional Integration and Task Team Leader for the Project, and senior officials from the EAC Secretariat.

Addressing stakeholders at the launch, the Deputy Secretary General commended the World Bank for the contribution it has made to support various initiatives geared towards strengthening the regional integration agenda.

Dr. Bukuku disclosed that the World Bank had committed United States Dollars One million to support public financial management coordination and harmonisation in the Partner States “and this is indeed a positive gesture worth commending by the people of East Africa”.

He said transparent public financial management was a critical facet for a robust fiscal regime which was vital for the implementation of the Monetary Union, the third Pillar of EAC integration process.

He noted that currently, EAC Partner States had varying public financial management structures at different levels of performance as measured by the Public Expenditure and Financial Accountability (PEFA) indicators. 

He said with the World Bank support, public financial management initiatives will now be implemented with a regional focus. The project will involve the reform in public procurement, public financial accounting/management and oversight practices in the EAC region, critical elements for a successful EAC Monetary Union.

The Financial Management Manager of East and Southern Africa at the World Bank, Ms. Patricia McKenzie said the project was in line with the Bank’s Regional Integration Strategy. She said the project will support the development of a robust Regional Fiscal environment and will among others; contribute towards the attainment of several benefits including the harmonisation of EAC Partners’ Public Financial Management Systems.

Other benefits include, among others;

a)    the development of an EAC regional procurement legislation to support regional programs;

b)    the harmonization towards international public-sector accounting and auditing standards for the management and oversight of regional initiatives;

c)     the promotion of EAC regional mutual recognition agreements amongst the EAC Partner States Accountancy bodies to facilitate mobility of Finance Professionals through the harmonization of the Accountancy Profession’s Syllabus;

d)    the coordination of the EAC regional oversight role of the Partner States Parliamentary Public Accounts Committees in collaboration with the East African Association of Public Accounts Committees to develop good practice guidelines and standards that will harmonize how the Committees oversee the utilization of public funds to achieve value for money;

e)    Coordination of the strengthening of financial reporting amongst the Media and promoting the use of civil society as key players in the monitoring of service delivery. 

The Project Coordinator and the Senior Accountant at the EAC Secretariat Mr. Godfrey Magadu said the implementation of the project will be done by the EAC Secretariat working closely with the Governments of the Partner States and bringing together key stakeholders to agree on harmonized standards. Technical support to implement the agreed standard will also be provided.