Final Signed Report for the Ministerial Session 28th Meeting of the Council

7/25/2019 Final Signed Report for the Ministerial Session 28th Meeting of the Council

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EAST AFRICAN COMMUNITY

28

th

MEETING OF THE

COUNCIL OF MINISTERS

Kampala Uganda

22

nd

29

th

November 2013

REPORT OF THE MEETING

Ref: EAC/CM/28/2013)

EAC SECRETARIAT

ARUSHA TANZANIA


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Report of the 28thMeeting of the Council, November 2013 Page 2

TABLE OF CONTENTS

PREAMBLE 42.1 REPORT OF THE 19TH MEETING OF THE SECTORAL COUNCIL OF

MINISTERS RESPONSIBLE FOR EAC AFFAIRS AND PLANNING ...... 92.2 REPORT OF THE 15th MEETING OF THE SECTORAL COUNCIL ON LEGAL

AND JUDICIAL AFFAIRS ................................................................................. 112.3 MATTERS PERTAINING TO PROGRESS ON THE INITIATION OF COUNCIL

BILLS AND OPERATIONALISATION OF ACTS OF THE COMMUNITY ........ 142.4 APPLICATION BY THE EAST AFRICAN COMMUNICATIONS

ORGANIZATION FOR OBSERVER STATUS .................................................. 182.5 PROGRESS ON THE INSTITUTIONAL REVIEW OF THE EAST AFRICAN

COMMUNITY .................................................................................................... 202.6 PROPOSED WAY FORWARD ON THE SETTLEMENT OF COSTS

AWARDED IN EACJ REF. NO. 1 OF 2010 (Hon. Sitenda Sebalu Vs.............. 212.7 REPORT ON CO-OPERATION IN DEFENSE ................................................. 24PART III REPORT ON PLANNING AND INFRASTRUCTURE ....................................... 273.1 PLANNING ........................................................................................................ 273.2 INFRASTRUCTURE ......................................................................................... 32PART IV REPORT ON SOCIAL SECTORS .................................................................... 374.1 SOCIAL SECTORS ........................................................................................... 37PART V REPORT ON POLITICAL MATTERS ............................................................... 435.1 POLITICAL AFFAIRS ........................................................................................ 435.2 PEACE AND SECURITY .................................................................................. 45PART VI REPORT ON CUSTOMS AND TRADE MATTERS.......................................... 466.1 REPORT ON CUSTOMS AND TRADE MATTERS.......................................... 46PART VII FINANCE AND ADMINISTRATION MATTERS ................................................ 547.0 PREPARATION OF THE EAC BUDGET FOR THE FINANCIAL YEAR

2014/2015 ......................................................................................................... 547.1 REPORT OF FINANCE AND ADMINISTRATION COMMITTEE MEETINGS . 56PART VIII ANNUAL PROGRESS REPORT OF THE COUNCIL TO THE SUMMIT FOR

THE PERIOD DECEMBER 2012NOVEMBER 2013 .................................... 99PART IX REPORTS OF OTHER EAST AFRICAN COMMUNITY ORGANS .................. 999.1 EAST AFRICAN COURT OF JUSTICE ............................................................ 999.2 EAST AFRICAN LEGISLATIVE ASSEMBLY ................................................. 100PART X REPORTS OF EAC INSTITUTIONS .............................................................. 10210.1 EAST AFRICAN CIVIL AVIATION AND SAFETY AND SECURITY

OVERSIGHT AGENCY ................................................................................... 10210.2 LAKE VICTORIA BASIN COMMISSION ........................................................ 10510.3 LAKE VICTORIA FISHERIES ORGANIZATION ............................................ 10710.4 INTER-UNIVERSITY COUNCIL FOR EAST AFRICA .................................... 11010.5 EAST AFRICAN DEVELOPMENT BANK ....................................................... 111PART XI PROGRESS ON THE NEGOTIATIONS FOR ADMISSION OF THE REPUBLIC

OF SOUTH SUDAN INTO THE EAC .............................................................. 11311.1 Preparations for Negotiations .......................................................................... 113

12.1 PROGRESS ON THE ESTABLISHMENT OF THE EAST AFRICAN HEALTHRESEARCH COMMISSION AND THE EAST AFRICAN KISWAHILICOMMISSION ................................................................................................. 114

12.2 REVITALIZING THE PERFORMANCE OF THE COUNCIL ........................... 11412.3 AGRICULTURE AND FOOD SECURITY ISSUES ......................................... 115

LIST OF TABLES

Table I: Total Budget Proposal ....................................................................................... 55Table II: Budget by Expenditure Category ...................................................................... 55

Table III: Budget Allocation to Priority Areas ................................................................... 56Table IV: Budgetary contributions to East African Community (Organs & LVBC) ........... 56Table V(a): Status of Partner States Contributions to IUCEA as at 18thNovember, 2013 58


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Table V(b): Arrears as at 18th November, 2013 .................................................................. 59Table VI: Status of Country Contributions for the Financial Year 2012/2013 & 2013/2014

59Table VII: Positions and Dates of Expiry of Contracts & End of Tour of Duties for Outgoing

Staff who are yet to be paid their gratuity ......................................................... 60Table VIII: Status of Contribution to IUCEA Headquarters Construction as at 18th

November 2013 (in US$) .................................................................................. 61Table IX(a): Comparison of Budget and Audited Accounts .................................................. 62Table IX(b): Cumulative Revenue Reserve .......................................................................... 62Table X: Status of Investment in Fixed Deposits as at 18th November 2013 ................. 63Table XI: Status of IUCEAs investments in Fixed Deposits as at 18th November 2013. 63Table XII: Status of Contributions for the Operation Save Nile Perch Project .................. 65Table XIII(a): Priority Activities Seeking Re-allocation ............................................................ 66Table XIII(b): Activities from which to Re-allocate .................................................................. 69Table XIVA: Proposed re-allocation from - ............................................................................ 71Table XIVB: Proposed Re-allocation to - ............................................................................... 71Table XVA: Proposed reallocation from - ............................................................................. 73Table XVB: Proposed reallocation to - ................................................................................. 73Table XVIA: Supplementary Budget requested for USAID Supported Staff ......................... 75

Table XVIB: Supplementary Budget requested for USAID funded activities at EACSecretariat ......................................................................................................... 75

Table XVII: Proposed activities for which the Supplementary Budget is being sought ....... 78Table XVIII: Details of the funds required ............................................................................. 79Table XIX: Positions and Dates of Expiry of Contracts ....................................................... 93


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PREAMBLE

The 28th Meeting of the Council of Ministers (the Council) was held in Kampala,Uganda from 22nd28thNovember, 2013.

Pursuant to Article 12(2) and 12(5) of the Treaty for the Establishment of the EastAfrican Community (the Treaty), and the Rules of Procedure for the Council ofMinisters the Bureau for the meetings changes annually by consensus and takinginto account the principle of rotation. According to the criteria on rotation, theRepublic of Rwanda and The United Republic of Tanzania should have been cominginto the bureau. However, the Republic of Rwanda declined the Chairmanship. Uponconsultation the Republic of Kenya took over from the Republic of Uganda asChairperson and The United Republic of Tanzania took over from the Republic ofBurundi as Rapporteur. The Meeting was chaired by Mrs. Phyllis JepkosgeiKipkingor-Kandie, Cabinet Secretary, Ministry of East African Affairs, Commerce andTourism, Republic of Kenya. The Rapporteur was Mr. Mugisha Kyamani, Principal

Legal Officer, Ministry of East African Cooperation, The United Republic of Tanzania.

The outgoing Chairperson, Hon. Shem Bageine, MP, Minister of State, Ministry ofEast African Community Affairs, on behalf of the Republic of Uganda, extended awarm welcome to all delegates attending the Meeting. He also thanked the PartnerStates and EAC Organs and Institutions for their support during UgandasChairmanship. He requested the same support to be accorded to the incoming Chairand assured the Meeting that Uganda will continue to provide the necessary supportto the Chair and the Community in general. He pointed out that Uganda is happy tohave this opportunity to host the 28th Meeting of the Council. The speech of theoutgoing Chairperson is attached hereto as Appendix I.

In her opening remarks, the incoming Chairperson, Mrs. Kandie thanked theRepublic of Uganda for having steered the Community Affairs ably during her termas Chair of the Council. In this regard she noted significant milestones achievedduring the period and thanked the outgoing Chairperson for a job well done. Shefurther noted that the Meeting is going to consider a number of important issues tothe Community as set out in the Agenda. She requested the delegates to be time-conscious when conducting the meeting and wished the Meeting fruitfuldeliberations. The speech of the incoming Chairperson is attached hereto asAppendix II.

In his remarks, Amb. Dr. Richard Sezibera, the Secretary General of the East AfricanCommunity, warmly welcomed delegates to the Meeting. He regretted the recentdemise of the Late Dr. Flora Mndeme Musonda, Director for Trade, East AfricanCommunity Secretariat whom she lauded for her able contribution to the East AfricanCommunity. He thanked the Republic of Uganda for the hospitality extended to thedelegates and for ably chairing EAC meetings during her term. He informed theMeeting that many EAC Meetings are being hosted by the Republic of Ugandaincluding, and the 15thSummit of the EAC Heads of State where the Heads of Stateare expected to sign the Protocol on the Establishment of the EAC Monetary Union.He thereafter, wished the Meeting fruitful deliberations.


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The Meeting adopted the Agenda and the Programme and deliberated on thefollowing matters -

(a) Report on the Implementation of the Previous Decisions of the Council;(b) Report of the Office of the Secretary General;

(c) Report on Planning and Infrastructure;(d) Report on Social Sectors;(e) Report on Political Matters;(f) Report on Customs and Trade Matters;(g) Finance and Administration;(h) Annual Report of the Council to the Summit for the Period of December

2012November 2013;(i) Reports of other East African Community Organs;(j) Reports of East African Community Institutions; and

(k) Progress Report of the Negotiations for the Admission of the Republic ofSouth Sudan into the East African Community.

The Council was attended by Mrs. Phyllis J. Kipkingor-Kandie, Cabinet Secretary,Ministry of East African Affairs, Commerce and Tourism; Mr. Joseph Ole Lenku,Cabinet Secretary, Ministry of Interior and Co-ordination; Mr. Felix Koskei, CabinetSecretary, Ministry of Agriculture, Livestock and Fisheries from the Republic ofKenya; Hon. Samuel J. Sitta, MP, Minister, Ministry of East African Cooperation;Hon. Bernard K. Membe MP, Minister, Ministry of Foreign Affairs and InternationalCooperation; Hon. Dr. Harrison Mwakyembe, Minister, Ministry of Transport;Hon. Dr. Abdallah Kigoda MP, Minister, Ministry of Industry and Trade; Hon. ShamsiVuai Nahodha MP, Minister, Ministry of Defence and National Service;Hon. Dr. David Mathayo David MP, Minister, Ministry of Livestock and FisheriesDevelopment; Hon. Adam Kighoma Malima, Deputy Minister, Ministry of Agriculture,Food Security and Cooperatives; Hon. Saada Mkuya Salum, MP, Deputy Minister forFinance, Ministry of Finance from The United Republic of Tanzania; Hon. LontineNzeyimana, Minister, Ministry of the Office of the President Responsible for EACAffairs; Hon. Pascal Barandagiye, Minister, Ministry of Justice and Holder of theSeal; Hon. Tabu Abdallah Manirakiza, Minister, Ministry of Finance and Planning toEconomic Development; Hon. Odette Kayitesi, Minister, Ministry; of Agriculture andLivestock from the Republic of Burundi; Hon. Jacqueline Muhongayire, Minister,Ministry of East African Community; Hon. Mr. Justice Johnston Busingye, Minister ofJustice / Attorney General; Hon. Gen. James Kabarebe, Minister, Ministry of

Defence from the Republic of Rwanda; Hon. Shem B. Bageine, Minister of State,Ministry of East African Community Affairs; Hon. Sam K. Kutesa, MP, Minister ofForeign Affairs; Hon. Gen. Aronda Nyakairima, MP, Minister, Ministry of InternalAffairs; Hon. Tress Bucyanayandi, MP, Minister of Agriculture, Ministry of Agriculture,Animal Industry and Fisheries; from the Republic of Uganda.

In attendance were Permanent Secretaries/Principal Secretaries, the SecretaryGeneral, Amb. Dr. Richard Sezibera, Deputy Secretaries General, Director Generalfor Customs and Trade and delegates from Partner States, and EAC Organs andInstitutions. The names and particulars of the participants are contained in the listattached hereto as Annex I.


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PART I REPORT ON THE IMPLEMENTATION OF PREVIOUS DECISIONSOF THE COUNCIL OF MINISTERS

The Council of Ministers (the Council) as the Communitys policymaking organ ischarged with, among others the responsibility of keeping under constant review on

the progress of implementation of the programmes and activities of the Community.In this regard it is important that at the beginning of each Ordinary Meeting of theCouncil, the Secretariat tables a report on the status of implementation of thedecisions, directives and recommendations of the previous meeting of the Council.

In accordance with the Council directive (EAC/CM27/Directive 1), the Secretariat hascompiled a consolidated Report on Status of Implementation of Decisions andDirectives of the 27thMeeting of the Council, 26thand 25thStatus of Implementationof Decisions and Directives of the Council that remained outstanding as at August2013. A detailed matrix on the status of implementation of decisions and directivesof the Council is attached hereto as Annex II.

The Secretariat compiled a consolidated report of the status of implementation ofDecisions and Directives of the 27thMeeting of the Council. The report further givesan update on the status of implementation of Decisions and Directives made at the26th, 25thand 24thMeetings of the Council that remained outstanding.

The Council observed that -

(a) the report contained a total of 75 Decisions/Directives. Twenty two (22)Decisions/Directives (29.3%) were marked Green (fully implemented), ThirtyFive (35) Decisions/Directives (47.7%) were marked Yellow (partiallyimplemented or implementation still on-going), Twenty (18) Decisions /Directives (24%) were marked Red(No action taken to date); below are thedecisions and directives that were marked Red (No action taken).

Outstanding Decisions/Directives of the 27thMeeting of Council

(a) EAC/CM 27/Decision 11: The Council adopted the East African CommunityScience and Technology Commission Bill, 2013, East African CommunityAssets and Premises Protection Bill 2013 and referred them to the SectoralCouncil on Legal and Judicial Affairs for legal input;

(b) EAC/CM 27/Directive 11: The Council directed the Secretariat to refer theproposals on the amendment of the Treaty to the Sectoral Council on Legaland Judicial Affairs for consideration;

(c) EAC/CM 27/Directive 16: The Council directed the Secretary General tocommunicate to the Government of the Federal Republic of Somalia to extendappropriate security and protocol facilitation to the Verification Team while inthe Federal Republic of Somalia;

(d) EAC/CM 27/Directive 18: The Council adopted the decisions of the 4th and5thMeetings of the Sectoral Council on Agriculture and Food Security(EAC/CM 27/Decision 20)and directed the Secretariat to convene a high levelregional forum to deliberate on the need for transformative sustainable

livestock farming practices by June 2014;


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(e) EAC/CM 27/Directive 19:The Council directed the Partner States to expeditethe ratification of the EAC SPS Protocol and deposit the instruments ofratification with the Secretary General by June 2014;

(f) EAC/CM 27/Directive 23: The Council adopted the decisions of the5thMeeting of the Sectoral Council on Tourism and Wildlife Management

(EAC/CM 27/Decision 29) and directed the Secretariat to convene a JointMeeting of the Sectors at Ministerial level to consider the report of the TaskForce and provide guidance on the introduction of an EAC Tourist Visa;

(g) EAC/CM 27/Directive 24: The Council directed Partner States to adequatelyplan and allocate resources to train more hotel assessors;

(h) EAC/CM 27/Decision 45: The Council referred the proposed draftamendments of the EAC Customs Management Act, 2004 and EAC CustomsManagement Regulations, 2010 to the Sectoral Council on Legal and JudicialAffairs for legal input -

(i) EAC/CM 27/Directive 28: The Council took note of the progress on thedevelopment of the IUCEA Headquarters (EAC/CM 27/Decision 51)and

directed the Republic of Uganda and the Republic of Burundi to remittheir contributions towards the construction of the IUCEA headquartersbuilding in order to allow smooth implementation of the constructionworks by 31stDecember 2013;

(ii) EAC/CM 27/Directive 33: The Council directed Partner States toconsider the increment of US$776,050 in their supplementary budgetswhere possible;

(iii) EAC/CM 27/Directive 34: The Council directed the Partner States toconsult further on the proposal that the budget of the East AfricanCommunity be financed from 1% of the value of imports from outsidethe East African Community;

(iv) EAC/CM 27/Directive 66: The Council directed the United Republic ofTanzania and the Republic of Rwanda to urgently meet to resolve theissues of mass expulsion of Rwandans by the United Republic ofTanzania;


(a) EAC/CM 26/Directive 10: "The Council directed the United Republic ofTanzania to ratify and deposit instruments of ratification with the SecretaryGeneral) on Protocols on; Environment and Natural Resources;

Establishment of the East African Kiswahili Commission; and Establishment ofthe East African Health Research Commission by 15thDecember 2012";(b) Out of the three Protocols, the United Republic of Tanzania has ratified the

Protocol on the Establishment of the East African Kiswahili Commission andprocess of ratifying the Protocol on Environment and Natural Resources isongoing;

(c) EAC/CM 26/Directive 35: The Council took note of the status of theinvestment in fixed deposit of the IUCEA Headquarters construction fund as at12thOctober 2012 (EAC/CM 26/Decision 68); and directed IUCEA to adoptand customize its investment policy to conform to the Community investmentpolicy;


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(a) EAC/CM25/Directive 21: The Council directed the United Republic ofTanzania to expedite the ratification of the Protocol on the Establishment ofthe East African Community Health Research Commission and deposit

instruments of ratification by 30th

September 2012;(b) EAC/CM25/Directive 33: The Council directed the Republic of Burundi,

Kenya, Uganda and the United Republic of Tanzania to settle their respectivearrears for previous years amounting to US$ 11,723,734 by 30thSeptember,2012;

(c) EAC/CM25/Directive 48: The Council directed the Secretariat to constitute aTeam of Management and Audit Experts to undertake the verification of LakeVictoria Basin Commission Management systems and operations and submitreport to the Sectoral Council of Ministers Responsible for Lake Victoria BasinCommission at its next meeting.

Outstanding Decisions/Directives of the 24th Extra-Ordinary Meeting of Council isEAC/EX/CM 24/Directive 17:The Council deferred the approval for the use of creditcards (EAC/EX/CM 24/Decision 28);and directed the Secretariat to study the matterfurther and develop a proposal on the use of credit cards based on best practicesand submit it to the 25thMeeting of Council for consideration.

There are still cases where decisions and directives are made without cleartimeframes for implementation. This poses challenges in terms of monitoring andreporting. Some of the decisions are -

(a) EAC/CM27/Directive 03- Development of Country specific On-line/Web-basedMonitoring Systems;

(b) EAC/CM27/Directive 34- Partner States consultation on the proposal offinancing the East African Community Budget from 1% of the value of importsfrom outside the East African Community;

The Council was informed that some decisions and directives were taken after theapproval of the Partner States and Secretariat budgets leading to failure toimplement them due to lack of resources e.g. directive (EAC/CM27/Directive 24);

The Council

(a) took note of the progress made in implementing the Council directivesand decisions (EAC/CM 28/Decisio n 01);

(b) directed Partner States and EAC Organs and Institutions to implementthe outstanding decisions and directives of 24 th, 25th, 26th and27thMeetings of the Council and report progress to the 29 thMeeting ofthe Council; (EAC/CM 28/Directiv e 01);

(c) reiterated its previous directive (EAC/CM 27/Decision 02) to alwaysprescribe clear time frames for all Council decisions and directives inorder to facilitate monitoring and follow up on implementation;(EAC/CM 28/Decisio n 03);

(d) directed the Secretariat to always provide appropriate guidance to theCouncil on the practicability of implementing decisions and directives


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with financial implications that are given in the middle of the financialyear; (EAC/CM 28/Direc tiv e 02);

(e) reiterated its previous decision directing The United Republic ofTanzania and the Republic of Rwanda to urgently meet to resolve theissues regarding the Republic of Rwandas concerns on the Kagera

Region expulsion of Rwandans by 30th

January, 2014(EAC/CM 28/Decisio n 04);and

(f) reiterated its previous decision directing the Secretariat to constitute aTeam of Management and Audit Experts to undertake the verification ofLake Victoria Basin Commission Management systems and operationsand submit report to the Sectoral Council of Ministers Responsible forLake Victoria Basin Commission at its next meeting(EAC/CM 28/Decisio n 05).

PART II REPORT OF THE OFFICE OF THE SECRETARY GENERAL

2.1 REPORT OF THE 19TH MEETING OF THE SECTORAL COUNCIL OFMINISTERS RESPONSIBLE FOR EAC AFFAIRS AND PLANNING

The Council was informed that the 19thMeeting of the Sectoral Council of Ministersresponsible for EAC Affairs and Planning the Sectoral Council was held inBujumbura, Burundi from 28thOctober 1stNovember 2013. The Sectoral Councildeliberated on the following agenda items -

(i) Report on the Implementation of Previous Decisions of the Sectoral Council;(ii) Cumulative Activity Implementation Report for the Period July 2012 June

2013;(iii) Progress Report on the Status of Implementation of the EAC Common

Market;(iv) Progress Report on the Internationalisation of the East African Community

(EAC) Passport;(v) Report of the 2ndEAC Secretary Generals Forum;(vi) Political Affairs Matters;(vii) Progress Report on the Elimination of Non-Tariff Barriers; and(viii) Progress Report on COMESA-EAC-SADC Tripartite Arrangement.

The full Report of the 19

th

Meeting of the Sectoral Council is part of the Compendiumfor this Meeting.

With regard to the status of implementation of the EAC Common Market Protocol,the Sectoral Council noted that Partner States implementation of the CommonMarket Protocol is generally lagging far behind, save for the Free Movement ofGoods. In this regard, Partner States need to expeditiously implement thecommitments and amend their national laws to conform to the Protocol as well asallocate more resources to the Ministry Department Agencies charged withimplementing the Protocol.


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With regard to the EAC Election Observation Mission (EAC-EOM) to the 16 th -18th September, 2013 Rwanda Parliamentary Elections, the Sectoral Council wasinformed that a meeting of the EAC Election observer Team to finalize and adopt thereport took place on 17thOctober 2013. The Team finalized their report and officiallyhanded over the Report to the Secretary General. The Report details the process

and the outcome of the Parliamentary Elections with recommendations to theElectoral Management Body in Rwanda. The overall finding was that the electionswere conducted in accordance with the Rwanda legal framework and the outcomeexpressed the will of the people of Rwanda. The Report is hereto attached as Annex III.

On the EAC Nyerere Centre for Peace Research Draft Strategic Plan and ConceptPaper, the Sectoral Council agreed to revise the documents to remove any referenceto NCPR a centre of excellence or an institution of the Community and instead referto it as a functional unit under the department of Political Affairs. The Council furthernoted the need to speedily conclude this matter to pave way for resource

mobilisation, especially under the forthcoming EDF11. The Revised Strategic Planand the Concept Note for NCPR are attached hereto as Annex IV and Vrespectively.

The Council

(a) adopted the decisions of the 19th Meeting of the Sectoral Council ofMinisters Responsible for EAC Affairs and Planning(EAC/CM 28/Decisio n 05);

(b) reiterated its earlier directive to the Partner States to expedite theimplementation of the Council directives on the harmonization /approximation of national laws into EAC context by 31stDecember2013 (EAC/CM 28/Decisio n 06);

(c) took note of the Report of the EAC Election Observation Mission toRwanda Parliamentary Elections (EAC/CM 28/Decisio n 07).

2.1.1 Progress Report on the Internationalization of the EAC Passport

The Council was informed that at its 19thMeeting, while considering the agenda onthe progress report on the Internationalisation of the EAC Passport, the SectoralCouncil noted that the Meeting of the Chiefs of Immigration held on 24 th -

25

th

October 2013 had proceeded as consultative meeting due to the fact that theRepublic of Rwanda was not represented.The Sectoral Council further noted thatthe Secretariat had formally submitted the report to the Republic of Rwanda forconsideration and therefore directed the Secretariat to table the progress on theInternationalisation of the EAC Passport to the 28 th Meeting of the Council(EAC/SCMEACP19/Directive 08).

The Council was informed that the Secretariat has since received comments fromthe Republic of Rwanda on the report of Chiefs of Immigration. The Council notedthe need for the Secretariat to circulate the said comments to Partner States forconsideration and comments. Furthermore, the Secretariat should convene a

Meeting of Chiefs of Immigration to consider comments from the Republic ofRwanda and thereafter submit the Report of the Meeting of Chiefs of Immigration to


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the 20thMeeting of the Sectoral Council of Ministers Responsible for EAC Affairs andPlanning for consideration.

The Council was informed that the Partner States are at different stages of procuringthe necessary infrastructure for the e-passport. This therefore raises the need to

fast-track the implementation of the new generation East African e-passport in termsof agreement on timeframes to launch and commence the internationalization of thesame. The Council observed that the internationalization of the new generation EastAfrican e-passport should commence by November 2015 and noted the need for thePartner States to integrate the budget estimates for the process in their budgetcycles for FY 2014/2015 and 2015/2016.

The Council

(a) decided that the internationalisation of the new-generation EAC e-passport shall take effect by November 2015 (EAC/CM 28/Decision 08);

(b) directed the Secretariat to circulate the comments from the Republic ofRwanda to Partner States for consideration by 15 th December 2013(EAC/CM 28/Decisi on 10);

(c) directed the Secretariat to convene a meeting of the Chiefs ofImmigration to consider comments from the Republic of Rwanda by31stJanuary 2014 (EAC/CM 28/Decisio n 11); and

(d) submitted the Report of the Meeting of Chiefs of Immigration to the20thMeeting of the Sectoral Council of Ministers Responsible for EACAffairs and Planning for consideration (EAC/CM 28/Decisio n 12).

2.2 REPORT OF THE 15th MEETING OF THE SECTORAL COUNCIL ONLEGAL AND JUDICIAL AFFAIRS

The Council was informed that at its 15 thMeeting held on 15thNovember, 2013, theSectoral Council on Legal and Judicial Affairs (the Sectoral Council) deliberated ona Proposal to Repeal the East African Community Trade Negotiations Act, 2007; theRevised Inter-University Council for East Africa Bill, 2013, repealing The IUCEA Act2009; the draft Protocol on East African Community Regional Cooperation on Health;the East African Community Science and Technology Commission Bill, 2013; thedraft East African Community Protocol on Preventing and Combating Corruption; thedraft Protocol on Immunities and Privileges of the East African Community, Its

Organs and Institutions for Legal input on Articles 2, 3 And 11; the draft East AfricanCommunity Protocol on Good Governance; the draft Protocol on the Establishmentof the East African Monetary Union; the Revised Comprehensive Technical PaperExtending Jurisdiction of the East African Court of Justice to include among others,Crimes Against Humanity; the Report of the East African Judicial EducationCommittee; the Report of the Sub Committee on Approximation of National Laws inthe EAC Context; Outstanding dues from the Republic of Rwanda; and the draftProtocol on the Establishment of the East African Monetary Union (the EAMUProtocol).The Report of the 15thMeeting of the Sectoral Council is attached heretoas Annex VI.


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The Sectoral Council made the following policy-oriented decisions/directives whichrequire consideration and/or adoption by the Council -

(a) Customs and Trade Matters

The Sectoral Council recommended to the Council to

(i) adopt the draft EAC Trade Negotiations (Repeal) Bill, 2013 attachedhereto as Annex VII and initiate the process of repealing the EastAfrican Trade Negotiations Act, 2008;and

(ii) direct the Partner States to ensure that before Bills passed by theLegislative Assembly are assented to by Heads of State, the AttorneysGeneral are consulted for appropriate legal advice;

(b) Social Sector Matters

The Sectoral Council recommended to the Council to direct

(i) that the current Protocol on The Establishment of the Inter-UniversityCouncil for East Africa should be amended in order to lay a basis for therevision/repeal of the Inter-University Council for East Africa Act 2009;and thereafter;

(ii) the Secretariat to thereafter prepare a Bill on the Establishment of theInter-University Council for East Africa based on the amended Protocol;

(iii) re-draft the Protocol on East African Community Regional Cooperationon Health;

(iv) submit to Partner States the draft Protocol on East African CommunityRegional Cooperation on Health by 31stDecember 2013; and

(v) table the draft Protocol on East African Community RegionalCooperation on Health to the 16th Meeting of the Sectoral Council onLegal and Judicial Affairs for legal input;

(c) Political Affairs Instruments


(i) revisit its earlier decision referring only Articles 2 (Scope), 3 (Objectives)

and 11 (Institutional Arrangements) of the draft Protocol on Immunitiesand Privileges of the East African Community, Its Organs and Institutionsfor legal input; and

(ii) refer the entire Draft Protocol on Immunities and Privileges of the EastAfrican Community, Its Organs and Institutions to the Sectoral Council onLegal and Judicial Affairs for legal input in March 2014;

(iii) reconsider the draft East African Community Protocol on GoodGovernance taking into account the Partner States varied views onrelated Constitutional matters;


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(d) Planning Sector Instrument

The Sectoral Council recommended to the Council to -

(i) adopt the draft Protocol on the Establishment of the East African

Monetary Union (the EAMU Protocol)attached hereto as Annex VIIIasit meets the requirements of the Treaty;

(ii) recommend to the Summit to approve and sign the EAMU Protocol; and(iii) direct the Secretariat to make a compilation of all documentation used in

the negotiations of the draft Protocol to be used as working documents indrafting the legal instrument establishing the institutions to support theMonetary Union;

(e) Legal and Judicial Affairs Matters


(i) seek an advisory opinion on the issues of forfeitureas provide underArticle 67 of the Treaty and compensationas used under Regulation96(3) of the EAC Staff Rules and Regulations from the East AfricanCourt of Justice; and

(ii) direct the Secretariat to expedite the preparation of the draft Protocol toOperationalize Extended Jurisdiction of the East African Court of Justiceto cover trade and investment and matters associated with the MonetaryUnion and submit it to the Sectoral Council at its 16thMeeting.

The Council recalled that the Heads of State at their 14 thSummit directed that theCouncil to consider extension of the jurisdiction of the East African Court of Justiceto cover crimes against humanity among others. The Council was informed that at its15thMeeting, the Sectoral Council on Legal and Judicial Affairs, which had causedthe Secretariat to develop a comprehensive technical paper on the matter, notedreports by

(a) the Republic of Rwanda and the Republic of Burundi that jurisdiction of the EastAfrican Court of Justice can be extended to cover crimes against humanity andhuman rights abuses;

(b) the United Republic of Tanzania and the Republic of Kenya that given the fact

that the Partner States subscribe to the African Court on Human and PeoplesRights, the International Criminal Court and relevant international conventionsand taking into account the capacity of the East African Court of Justice, it wasnot appropriate to extend jurisdiction to cover crimes against humanity andhuman rights abuses; and

(c) the Republic of Uganda has not submitted comments on the matter and hasbeen directed to do so by 30thNovember, 2013.

The Council noted that Partner States were yet to consult on the Report of the15thMeeting of the Sectoral Council on the legal and Judicial Affairs due to the factthat its meeting concluded shortly before the 28th Meeting of the Council. The

Council therefore decided to consider only the items on the Agenda of the15thSummit. The Council was informed that the matter on the extension of the


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jurisdiction of the EACJ is still under consideration by the Sectoral Council on Legaland Judicial Affairs.

The Council

(a) adopted the decisions of the 15th

Meeting of the Sectoral Council onLegal and Judicial Affairs pertaining to the Protocol on theEstablishment of the East African Monetary Union(EAC/CM 28/Decisio n 11);

(b) adopted the draft Protocol on the Establishment of the East AfricanMonetary Union (EAC/CM 28/Decisio n 12);

(c) recommended to the Summit to approve and sign the EAMU Protocol(EAC/CM 28/Decisio n 12);

(d) directed the Secretariat to make a compilation of all documentation usedin the negotiations of the draft Protocol to be used as workingdocuments in drafting the legal instrument establishing the institutions

to support the Monetary Union (EAC/CM 28/Directiv e 03);(e) directed the Secretariat to expedite the preparation of the draft Protocol

to Operationalize Extended Jurisdiction of the East African Court ofJustice to cover trade and investment and matters associated with theMonetary Union(EAC/CM 28/Directive 04);

(f) directed the Sectoral Council on Legal and Judicial Affairs to expeditedeliberations on the feasibility of extending the Jurisdiction of the Courtto cover crimes against humanity taking into account comments fromPartner States (EAC/CM 28/Directive 05); and

(g) deferred consideration of other decisions of the 15thMeeting of theSectoral Council on Legal and Judicial to the next meeting of theCouncil, save those that are on the agenda of the 15thSummit(EAC/CM 28/Decisio n 13).

2.3 MATTERS PERTAINING TO PROGRESS ON THE INITIATION OFCOUNCIL BILLS AND OPERATIONALISATION OF ACTS OF THECOMMUNITY

2.3.1 Initiation of Council Bills

The Council was informed that at its 27th Meeting held on 31stAugust 2013, theCouncil adopted The East African Community Assets and Premises Protection Bill,

2012; The East African Community Science and Technology Commission Bill, 2013;and The East African Community Customs Management (Amendment) Bill, 2013and referred the Bills to the Sectoral Council on Legal and Judicial Affairs for legalinput. The Council also took note of the Secretariats proposed way forward onprogression of other Bills for the purposes of the Councils contribution to theLegislative Assemblys Legislative Programme. The Secretariat proposal is shown inAnnex IX attached hereto.


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2.3.2 Progress on Proposed Bills

2.3.2.1 The East African Joint Negotiations Act (Amendment) Bill, 2010

At its 15thMeeting held on 15thNovember 2013, the Sectoral Council on Legal and

Judicial Affairs recommended to the Council to adopt the draft EAC TradeNegotiations (Repeal) Bill, 2013.

2.3.2.2 The Draft East African Community Privately Funded Infrastructure Bill,2009

This Bill, which is premised on the participation, through concessions and otherarrangements of the private sector in EAC Infrastructure projects, and which hasbeen sent to the Partner States for comments, was considered by the SectoralCouncil on Transport, Communication and Meteorology at its 10thMeeting held on21stAugust 2013. The Sectoral Council directed

(a) the Secretariat to submit the Bill to Partner States for comments; and(b) that the Bill, together with the comments from Partner States, be considered

by the Sectoral Council on TCM at its 11thMeeting.

2.3.2.3 The Draft East African Community Anti-Counterfeit Bill, 2013

The Council was informed that the proposed Bill seeks to provide a legal frameworkfor Partner States to prohibit trade in counterfeit goods and for connected purposes.The Draft Bill was considered by the Sectoral Council on Trade, Industry, Financeand Investment and recommended it to the Council for consideration and onward

transmission to Sectoral Council on Legal and Judicial for legal input.

2.3.2.4 The Draft East African Community Development Fund Bill, 2012

The Council was informed that progress on the Draft East African CommunityDevelopment Fund Bill, 2012 awaits further input by the East African DevelopmentBank. The Secretariat convened an EAC Infrastructure Match-Making Conferenceheld in Kampala 5th 6th July 2013 which was attended by, among others, theMinisters for Finance. During that meeting the need for a regional framework toattract private funding was agreed upon. In view of the fact that the Community wasalready developing a Protocol on a Development Fund, the meeting agreed to revise

the draft Protocol to incorporate provisions to enable the Fund access private sectorfinancing and act as a regional guarantee facility for private sector investments ininfrastructure development. It is these provisions that the East African DevelopmentBank is developing into the draft protocol. Subsequently, the revised draft protocolwill be considered by the Partner States Expertsat meetings to be scheduled uponcompletion of the draft Protocol.

The Council

(a) took note of the progress made on the preparation of the above-mentioned Bills; (EAC/CM 28/Decisio n 14); and

(b) directed the relevant Sectoral Councils to expedite the preparation of theBills, (EAC/CM 28/Directive 06).


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2.3.3 Proposed Takeover of the East African Community Disaster RiskReduction and Management Bill, 2013

The Council was informed that during the 1st Meeting of the 2nd Session of theLegislative Assembly, which took place on 19 th - 31stAugust 2013, the East African

Community Disaster Risk Reduction and Management Bill, 2013, which had beenintroduced by Hon Patricia Hajabakiga under Article 59(1) of the Treaty for theEstablishment of the East African Community, (the Treaty) was moved for2ndReading. The objective of this Bill, a copy of which is attached hereto asAnnex X is to provide a legal framework for intervention and assistance for peopleaffected by climate change and natural hazard-related disasters, and to protect thenatural environment through integration of comprehensive disaster risk reduction andmanagement practices in the East African Community.

Upon consultations among the Ministers Responsible for East African CommunityAffairs and the EALA Committee on Agriculture, Tourism and Natural Resources the

Hon. Chairperson of the Council successfully moved a motion to adjourn debate inorder to allow the Council of Ministers -

(a) consult on, and consider the policy implications of this Bill; and(b) pursue the ratification of the East African Community Protocol on Peace and

Security which, among other objectives, provides for co-operation in disasterrisk reduction, management and crisis response; the coming into force of thisprotocol would assist in articulating on relevant institutional arrangementsunder the Bill; and

(c) taking over the Bill for appropriate amendment and subsequent re-introductionas a Council of Ministers Bill.

By his letter Ref. ORG/1/2 dated 17th September 2013, the Secretary Generalinformed the Partner States of this development and requested for their comments.The Council noted that it was appropriate for the Council to take over the Bill, causenecessary amendments and consider re-tabling it to EALA at a later date.

The Council -

(a) took over the East African Community Disaster Risk Reduction andManagement Bill, 2013 (EAC/CM 28/Decision 15);

(b) directed Partner States to submit comments on the East AfricanCommunity Disaster Risk Reduction and Management Bill, 2013 to theSecretariat by 31stDecember 2013 (EAC/CM 28/Direc tiv e 07);and

(c) directed the Sectoral Council on Environment and Natural Resources tothereafter consider the East African Community Disaster Risk Reductionand Management Bill, 2013 and give policy guidance(EAC/CM 28/Direc tiv e 08).


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2.3.4 Operationalization of The East African Legislative Assembly ElectionsAct, 2011 and The East African Parliamentary Institute Act, 2011

2.3.4.1 Legal Position

The Treaty provides for legislative and executive processes required in the initiationof, passing, assent to, and publication of Bills. The subsequent commencement /operationalization of Bills are provided for under The Acts of the East AfricanCommunity Act, 2004. According to this Act,

10. (1) Subject to the provisions of this section, the commencement ofan Act shall be such date as is provided in or under the Act, or whereno date is provided, the date of its publication as notified in theGazette.

(2) Every Act shall be deemed to come into force at the first moment of

the day for commencement1.

2.3.4.2 Commencement of the Acts

Following the procedure provided for in the Treaty the following Acts were enacted -(a) the East African Legislative Assembly Act, 2011- which makes provisions for

election of the Members of the East African Legislative Assembly and relatedmatters and a copy whereof is attached hereto as Annex XI, the mainobjective of the Act is to provide a uniform legal framework under which theNational Assemblies of the Partner States may operationalize Articles 50 and51 of the Treaty regarding elections and tenure of the Members of thelegislative Assembly; and

(b) The East African Parliamentary Institute Act, 2011, whose purpose is toestablish the East African Parliamentary Institute and related matters and acopy of which is attached as Annex XII.

Although the commencement of both Acts is not an issue, The East AfricanLegislative Assembly Elections Act, 2011 provides that the Act ..... shall come intoforce on such a date as the Council may, by notice published in the Gazette,appoint2the East African Parliamentary Institute Act, 2011 also provides that the Act.....shall come into force on such a date as the Council may, by notice published in

the Gazette, approve

3

.

The Council observed that some provisions in The East African Legislative AssemblyElections Act, 2011 may be in contravention of Article 50 of the Treaty. Furthermore,the Council noted that the operationalization of The East African ParliamentaryInstitute Act, 2011 has financial implications. The Council therefore noted the needfor the Secretariat to first identify the financial implications before Council sets a datefor its operationalization.

1

Section 102Section 1

3Section 1


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The Council

(a) stayed consideration of The East African Legislative Assembly ElectionsAct, 2011 pending finalization of the consultations by the Partner States(EAC/CM 28/Decisio n 16); and

(b) deferred setting a date for operationalization of The East AfricanParliamentary Institute Act, 2011 till the Secretariat tables a report on thefinancial implications on its implementation and report to the 29 thMeetingof the Council (EAC/CM 28/Decisio n 17).

2.4 APPLICATION BY THE EAST AFRICAN COMMUNICATIONSORGANIZATION FOR OBSERVER STATUS

2.4.1 Legal Position

The Council was informed that operational principles governing the practical

achievement of the objectives of the Community include the principle of subsidiaritywith emphasis on multi-level participation and the involvement of a wide range ofstakeholders in the process of integration4. The pursuit of this principle is meant to,among other projections; enable the Community to realize its objective for theenhancement and strengthening of partnerships with the private sector and civilsociety in order to achieve sustainable socio-economic and political development5.Accordingly, the Treaty provides for the granting of observer status to inter-governmental organizations in the membership of the Community6. For purposes ofoperationalizing the Treaty on this matter, the Council adopted procedures for theGranting of Observer Status attached hereto as Annex XIII.

(a) The following broad criteria are applicable

(i) acceptance of the fundamental principles underlying the East AfricanCommunity;

(ii) interest in the fundamental and operational principle of the East AfricanCommunity;

(iii) contribution towards the strengthening of regional integration in East Africa;and

(iv) ability to enhance development partnership.

(b) The following specific criteria are applicable to East African Non-GovernmentalOrganizations/ Civil Society Organizations -

(i) an applicant organization should have objectives of common interest to thePartner States;

(ii) the organizations activities should bear a regional dimension with theorganization being registered in each of the Partner States; and

(iii) in its regional activities the organization should have a track record of atleast three years of active operation.

4

Article 7(1) (d) of the Treaty for the Establishment of the East African Community5Article 5 (3) (g)

6Article 3 (5)


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2.4.2 Application

By its letter Ref 358/EACO/ES/013 dated 9 th April 2013, the East AfricanCommunications Organization, a regional public private partnership organization thatbrings together national regulators in the communications sectors; operators and

service providers in the telecommunications, broadcasting and postal sectors; andICT training institutions in the five EAC Partner States, applied for Observer Status inthe Community. The mission of the East African Communications Organization,which was established in 2000 and is based in Kigali, Rwanda, is to strengthen andpromote cooperation in the development and provision of postal telecommunicationsand broadcasting services in the Community. Its specific objectives7are to -

(a) harmonize policy and regulatory frameworks in the region;(b) promote the development of broadcasting, postal and telecommunication/ICT

service and regulatory matters; and(c) devise ways and means to achieve fast, reliable, secure, affordable and

efficient communication services within the East African Community. Thefocus areas are highlighted in Article 3 of its Constitution8.

A copy of the Application is attached hereto as Annex XIV.

By his letter Ref SGN/5/7 dated 2ndMay 2013, the Secretary General circulated thisapplication to the Partner States for consideration. By her letter Ref PP 299/232/01dated 15th August 2013 the Republic of Uganda expressed support for thisapplication.

2.4.3 Proposed Way Forward

The Council was informed that in considering this application, the Council will takeinto account -

(a) the Partner States comments;(b) both the broad criteria and specific criteria applicable;(c) compatibility and complementarity of the objectives and activities of the East

African Communications Organization with those of the East AfricaCommunity taking into account the provisions of Article 99 of the Treaty; and

(d) the East African Communications Organizations willingness to co-operate

with the Community for mutual benefit.

The Council was informed that the application was considered by the SectoralCouncil on TCM at its 10thMeeting held in Kigali on 19th- 23rdAugust, 2013 and tooknote of the application as it was being processed. The Council further noted that theparticipation of EACO in EAC communications related activities would add value asits membership comprises relevant sectors involved in regulatory operational andtechnical matters in communications and ICT. The Council therefore supported theapplication of EACO as an observer to the EAC working closely with the SectoralCouncil on TCM.

7Article 2(i) EACSO Constitution

8Article 3 EACSO Constitution


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The Council granted the East African Communications Organization anobserver status to the East African Community (EAC/CM 28/Decisio n 18).

2.5 PROGRESS ON THE INSTITUTIONAL REVIEW OF THE EAST AFRICANCOMMUNITY

The Council was informed that at its 24thMeeting held on 26th November 2011, theCouncil directed the Secretariat to engage a Consultant to undertake a detailedreview of the Institutional Review in the next Financial year 2012/2013 (EAC/CM24/Directive 38).Accordingly, at its 26thMeeting held on 19th - 26thNovember, 2012,the Council, took note of the progress made on the Institutional Review andapproved the Terms of Reference for engagement of the consultant to carry out theexercise.

2.5.1 Subsequent Developments

The Secretariat engaged the consultants on 21stJanuary 2013 who submitted the1stDraft Report to the Secretary General. The Draft Report, presented an analysisand recommendations based on a functional analysis of the EACs Institutionalframework, covering structures, policy-making, work processes, decision-making,and institutional inter-actions. It indicates how workloads, job analysis, jobdescription, staffing, grading, and costs assessment would need to be approached tofinalise the institutional assessment. It does not cover those elements in detail,however, because they are conditioned by the decisions Partner States need tomake on key strategic options related to structures and functions. The Report wasconsidered by the Hon. Ministers/Cabinet Secretary and Permanent Secretariesresponsible for East African Community Affairs during the Retreat held on 8th19thJune, 2013.

The Retreat -

(a) appreciated that the consultancy was still work in progress and noted theneed for the Council to take decisions on key strategic issues raised in theinterim report and recommend that these decisions be taken by Council at its27thMeeting; and

(b) advised the Council to consider extension of time for the Consultants tofinalize the outstanding work.

The validation workshop on the Institutional Review Report was held on 12 th -13thAugust 2013. The Workshop was attended by representatives from all PartnerStates as well as EAC Organs and Institutions. At its 27th Meeting held on31stAugust 2013, the Council received the Institutional Review Report and deferredits consideration, pending consultations by Partner States on the final Report,(EAC/CM 27/Decision62).

The Council was informed that the Consultant had been requested to developanother draft Report for consideration by Partner States following a workshop on theinitial draft. The Council further noted that some Partner States are yet to submit

their comments on the draft Report.


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The Council directed

(a) the Secretariat to submit the draft Report of the EAC Institutional Reviewto Partner States for comments (EAC/CM 28/Decisio n 19); and

(b) Partner States to submit their comments on the draft Report of the EAC

Institutional Review by 31st

January 2014 (EAC/CM 28/Decision 20).

2.6 PROPOSED WAY FORWARD ON THE SETTLEMENT OF COSTSAWARDED IN EACJ REF. NO. 1 OF 2010 (Hon . Sitend a Sebalu VsThe Secretary General of the East Afr ican Commu nity & 3 Others)

The Council was informed that in EACJ Ref No. 1 of 2010, Hon. Sitenda Sebalu vsSecretary General of the East African Community and the Attorney General ofUganda, the Applicant, among other prayers sought declarations to the effect that

(a) the Secretary General delayed to convene a Meeting of the Council of

Ministers to create the East African Court of Justice as an appellate court;(b) the Secretary Generals inaction in convening a Meeting of the Council was

an infringement of the fundamental principles of Good Governance asenshrined in the Treaty for the Establishment of the East African Community;

(c) the Republic of Uganda delayed submission of comments on the draftProtocol to Operationalize Extended Jurisdiction of the East African Court ofJustice;

(d) inactions of the Secretary General and the Attorney General of Uganda werean infringement of the Treaty; and that

(e) urgent action should be taken by the East African Community to conclude aProtocol to operationalize extended jurisdiction of the East African Court ofJustice under Article 27 of the Treaty.

In the Secretary Generals defence, evidence was adduced to show what theSecretary General, the Council of Ministers and the Partner States had since 2005been doing regarding the development and conclusion of the draft Protocol. TheCourt ruled that -

(a) the Attorney General of Uganda (Uganda) was guilty of delayed action insubmitting comments on the draft Protocol to Operationalise ExtendedJurisdiction of East African Court of Justice and was therefore in breach of the

Treaty; and that(b) the Secretary General ought to have done more than preparing the zeroprotocol and organizing meetings and consultations; that he ought to haveresorted to Article 29 of the Treaty to bring the Partner States that delayedsubmission of comments to the East African Court of Justice.

At its 24thExtraordinary Meeting held on 26thApril 2012, the Council was informedthat as the successful party in the case, the Applicant was awarded costs of the suitto be borne equally by the Respondents. He claimed US$ 14,357,669.00 as costs.Following arguments made for the Secretary General in Court this exorbitant figurewas rejected and, upon taxation by the Taxing Officer of the Court, the Applicant was

awarded the sum of US$ 105,068.20 whereby the Secretary General was expected


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to pay US$ 52,534.10 and the Attorney General of Uganda, the otherUS$ 52,534.10.

The Council considered a request by the Secretariat to reallocate US$ 52,534.10unutilized funds under personnel emoluments due to the delays in the recruitment

process to meet the costs which request had been recommended by the Financeand Administration Committee. The Council however observed that -

(a) settlement of the above costs would set a bad precedent;(b) there was another pending case related to this matter;(c) there was a possibility of other cases coming up; and(d) there was need to safeguard Community assets and resources; in so doing,

urge Partner States to comply with the Treaty provisions and the Protocolsthereof.

The Council noted the need for Partner States to discourage this kind of litigation

and therefore -

(a) deferred the approval of re-allocation of US$ 52,534.10 to settle the costsrelated to EACJ Reference No. 1 of 2010 (EAC/EX/CM 24/Decision 20);

(b) directed the Secretariat to explore all the possibilities of an appeal or anyother legal remedies available against the impugned decision of the Court(EAC/EX/CM 24/Directive 15)and

(c) directed the Secretariat to ensure that in future all litigation with policy andfinancial Implications are immediately brought to the attention of the PartnerStates (EAC/EX/CM 24/Directive 16).

2.6.1 Subsequent Developments

The Council was informed that for purposes of exploring possibilities of appeal on10thJuly 2010, the First Instance Division was moved for leave to file an appeal fromthe judgment. It was argued, on behalf of the Secretary General, that

(a) the delay in filing the Appeal was occasioned by hardship;(b) consultations between the Applicant, the Attorney General of the Republic of

Uganda and the Council of Ministers, the Communitys policy organ, took longand this delayed the filing of the appeal in the time prescribed by the Rules of

Procedure; and(c) the appeal had chances of success.

The Council was further informed that on 14thFebruary 2013, the Court found thedelay to appeal inordinate and was not convinced of the success of the intendedappeal. The Court therefore dismissed the application for leave to appeal out of time.By his letter Ref ORG/2/1 dated 3rdApril 2013 the Secretary General informed thePartner States accordingly and informed them of the need to settle the matter beforeit grows in magnitude and involves the Secretariat in further loss and inconvenience.These developments were brought to the attention of the Council of Ministers at its27thMeeting under the Report on Implementation of Previous Decisions which report

the Council noted. Subsequently the judgment creditor filed EACJ Ref 8 of 2012 inwhich he sought orders for enforcement of the orders on payment of costs.


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Judgment was delivered on 22nd November 2013 whereby the Secretary Generaland the Council of Ministers were cited in contempt of Court and the SecretaryGeneral was ordered to pay the costs within 30 days.

2.6.2 Proposed Way Forward

Furthermore, the Council was informed that taking into account the background tothis matter, the litigation so far had and the future outlook it should be noted that -

(a) any grounds for appealing against the latest ruling of the First InstanceDivision are not strong enough; appealing against the latest ruling on affectingout of time will be tantamount to unnecessarily continuing with litigation at therisk of the amount in costs further escalating;

(b) the awarded US$ 52,534.10 costs was not on the high side considering thefact that this was arrived at from an originally claimed US$ 14,357,669.00costs;

(c) the 2ndRespondent (i.e. the Attorney General of Uganda) did not consider itworthwhile to appeal against the Judgment and the taxation of costs and isproceeding to settle his US$ 52,534.00 costs; and

(d) while this matter is proceeding in Court and settlement is delayed, the EastAfrican Community (through the Summit of Heads of State, the Council ofMinisters, the Sectoral Council on Legal and Judicial Affairs and the EastAfrican Legislative Assembly) is proceeding in terms of Article 38 of TheTreaty to accept the judgment in the Reference and expedite the conclusionof the draft Protocol.

The Council was informed that it is therefore advisable to pay the US$ 52,534.10costs before the figure rises on account of delays and subsequent litigation. TheRepublic of Uganda informed the Council that it was in the process of paying thecosts as awarded by the Court.

The Council noted that the responsibility of concluding Protocols lies to PartnerStates as provided for under Article151 of the Treaty. To that end, concluding aProtocol to operationalize extended jurisdiction of the East African Court of Justicewill be determined by the Council of Ministers as provide under Article 27(2) of theTreaty, the Council shall have such other original, appellate, human rights and otherjurisdiction as will be determined by the Council at a suitable time. To this end, the

Partner States shall conclude a Protocol to operationalize the extended jurisdiction.

The Council noted that payment may set a bad precedent and open a Pandoras Boxfor future cases with the possibility of financially crippling the Community. TheCommunity assets and resources have to be safeguarded as observed by theCouncil. The Council is of the further view that these assets include Partner Statescontributions and accounts of the Community. The Council therefore noted the needfor the Office of the Counsel to the Community to consult the Attorneys General ofthe Partner States to team up to defend Community interests.

However, to abide by the fundamental principle of good governance including

adhering to the proper administration of law and justice, and to avoid a situationwhere continued failure to pay the costs in this case may lead to further escalation of


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costs and undue embarrassment to the Community. The Council was therefore ofthe view that the Secretary General should comply with the Court order in EACJRef.8 of 2012 and pay the costs as awarded.

The Council directed the Secretariat to settle the US$ 52,534.10 costs as

ordered by the East African Court of Justice (EAC/CM 28/Directive 21).

2.7 REPORT ON CO-OPERATION IN DEFENSE

At its Meeting held on 24th June 2013 and 19th November 2013 in Kampala, theSectoral Council on Co-operation in Defense considered the report of theConsultative Committee on Co-operation in Defense and the report of theConsultative Committee on Co-operation in Defence on Regional Security and madethe following decisions and directives -

2.7.1 Operations and Training

The Sectoral Council considered the progress report on EAC CPX 2013 preparationsheld in Bujumbura, Republic of Burundi from 13th-26thOctober 2013 and -

(a) approved Muzinda Military Barracks in the Republic of Burundi as exercisesite for EAC CPX 2013 (EAC/SC/20/2013 Decision 1);

(b) approved the name USHIRIKIANO IMARA for the current and future EACPSO exercises (EAC/SC/20/2013 Decision 2;

(c) approved the proposed EAC CPX 2013 timelines (EAC/SC/20/2013 Decision3);

(d) approved the estimated shared cost budget of US$ 92,980.00 and eachPartner State be urged to contribute US$ 18,596.16 by 30th August 2013(EAC/SC/20/2013 Decision 4); and

(e) directed EAC Secretariat to constitute a DEWG to develop Staff OfficersHand Book by the end of August 2013 (EAC/SC/20/2013 Directive2).

2.7.2 Report of the Commandants of EAC Command and StaffColleges/Higher Military Training Institutions

The Sectoral Council considered the report of the Commandants meeting held inArusha, Tanzania held from 3rd - 5thApril 2013 and -

(a) reiterated its earlier decision urging the Republic of Burundi to expedite theprocess of revising their Senior College (CEMCI) syllabus to conform to thoseof other Partner States, (EAC/SC/20/2013 Decision 5);

(b) reiterated its earlier decision urging the Republic of Burundi to post DirectingStaff to Senior Command and Staff Colleges of EAC Partner States as wasagreed (EAC/SC/20/2013 Decision 6);

(c) reiterated its earlier decision urging the Republic of Burundi of the need to useEnglish language as a medium of instructions at the CEMCI,(EAC/SC/20/2013 Decision 7);

(d) formally included the Rwanda Senior Command and Staff College in the EAC

exchange programme for Directing Staff and students, (EAC/SC/20/2013Decision 8); and


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(e) established a separate Forum for EAC Officer Cadet Training Schools to meetonce a year (EAC/SC/20/2013 Decision 9).

2.7.3 Draft Templates of Campaign Plan, Orders and Umpiring Criteria to beincorporated in the EAC PSO SOP

The Sectoral Council received the developed templates for EAC PSO CampaignPlan, Operation Plan, Orders and Umpiring Criteria and; adopted the templates forEAC PSO to be incorporated in the existing EAC PSO SOP (EAC/SC/20/2013Decision 10).

2.7.4 EAC Military Games and Cultural Events 2013

The Sectoral Council considered the report on EAC Military Games and CulturalEvents 2013 and

(a) commended Republic of Kenya for the progress made in preparations for the

EAC Military Games and Cultural Event 2013 (EAC/SC/20/2013 Decision 12).(b) That in all future events Hosting Partner State to always compose a Theme

Song for the EAC Military Games and Cultural Events (EAC/SC/20/2013Decision 13).

2.7.5 Report of the Meeting of the Chief Executive Officers of DefenseTechnical Facilities Offered for Joint utilization

The Sectoral Council on Cooperation in Defense considered the report of the ChiefExecutive Officers (CEOs) of Defense Technical Facilities offered for Joint Utilizationand made the following decisions and directives

The Sectoral Council

(a) directed the Republic of Rwanda to make a formal offer for joint utilization ofHorizon Group Ltd. and E-ICT (EAC/SC/20/2013 Decision 14);

(b) directed EAC Secretariat to coordinate the evaluation of the additionalfacilities offered by Kenya for joint utilization (EAC/SC/20/2013 Directive 5);

(c) encouraged Partner States to utilize the joint offered facilities(EAC/SC/20/2013 Decision 15); and

(d) directed EAC Secretariat to coordinate dissemination of Information for

offered facilities for joint utilization (EAC/SC/20/2013 Directive 6).

2.7.6 Secure Communication System for the East African CommunityPartner States Chiefs of Defense Forces

The Sectoral Council on Cooperation in Defense considered the Terms of Referencedeveloped by the Defence Experts Working Group (DEWG) on SecureCommunications and made the following decisions and directives -


(a) adopted the Terms of Reference for the Secure Communication Experts(EAC/SC/20/2013 Decision 17);


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(b) directed EAC Secretariat to submit these two positions to the EAC InstitutionReview for Consideration (EAC/SC/20/2013 Directive 7);

(c) decided that the designation of the person in charges Secure CommunicationSystem for CDFs be named the Call Manager System Administrator(EAC/SC/20/2013 Decision 18);

(d) decided that Host nation provides and funds the seconded military officers(EAC/SC/20/2013 Decision 19);

(e) approved the procurement of two compatible mobile units (EAC/SC/20/2013Decision20); and

(f) directed EAC Secretariat to come up with a proposal on the use of the CallManager System Administrator on ICT related duties in the EAC Secretariat(EAC/SC/20/2013 Directive 8).

2.7.7 Regional Security

The Sectoral Council on Cooperation in Defence adopted the report of the

Consultative Committee on Cooperation in Defence on Regional Security and madethe following decisions -

(a) Border control needs to be strengthened to address the threat of transnationalterrorism, criminals and drugs smugglers (EAC/SC/21/2013/Decision 1);

(b) Military Intelligence Chiefs to reassess the national and regional counterterrorism capacities with the view to strengthen the fight against terrorism atnational and within EAC (EAC/SC/21/2013/Decision 2);

(c) In the spirit of EAC, a mechanism to deal with illegal immigrants be developed(EAC/SC/21/2013/Decision 3);

(d) Appropriate legal and political measures including sanctions to curtailactivities of politico-military leaders of negative armed groups in the region beadopted(EAC/SC/21/2013/Decision 4);

(e) The EAC Partner States continue supporting the effort of the ICGLR/SADCMember States and international community on the on-going peace initiativesaimed at stabilizing Eastern DRC (EAC/SC/21/2013/Decision 5);

(f) Welcomed the development of MoU between ICGLR and MONUSCO andurged EAC Partner States to support IB operations tempo in order toeliminate negative forces operating in Eastern DRC to include FDLR, ADFand FNL (EAC/SC/21/2013/Decision 6);and

(g) Encouraged EAC Partner States to support the on-going Political Process

(Kampala Dialogue) which should be concluded for long term peace andstability (EAC/SC/21/2013/Decision 7).

The Council adopted the decisions of the Sectoral Council on Co-operation inDefence (EAC/CM 28/Decisio n 22).


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PART III REPORT ON PLANNING AND INFRASTRUCTURE

3.1 PLANNING

3.1.1 Progress on East African Monetary Union

The Council was informed that in pursuit of the directives of the Extra-ordinarySummit that was held in April, 2013, the 3 rd Meeting of the Sectoral Council onMonetary Union (SCEAMU) was held in June, 2013. The SCEAMU concluded thetechnical negotiations of the EAC Monetary Union (EAMU) Protocol. Consequently,the Council at its 27th Extra-Ordinary Meeting held in June, 2013, considered theEAMU Protocol and the report of the 3rd Meeting of the SCEAMU. The Councilforwarded the Draft Protocol to the Sectoral Council on Legal and Judicial Affairs(SCLJA) for legal input.

The draft EAMU Protocol was considered by the SCLJA at its meeting held on 12th

15thNovember 2013. Detailed information on this item is reported under Part II ofthis Report.

3.1.2 Report of the 2nd Meeting of the Sectoral Council on Finance andEconomic Affairs

The Council was informed that the 2ndMeeting of the Sectoral Council on Financeand Economic Affairs (SCFEA) was convened on 11thSeptember, 2013 in Kampala,Uganda. The meeting considered, among others, the progress reports of theSectoral Committee on Statistics, the Monetary Affairs Committee, Committee onFiscal Affairs, and the Capital Markets, Insurance and Pensions Committee

(CMIPC). The meeting also considered matters relating to InfrastructureDevelopment in the EAC and the report of the EAC Public- Private Partnership(PPP) Diagnostic Study.

3.1.2.1 Report of the Sectoral Committee on Statistics

The Council was informed that the Sectoral Council noted the progress made inmaintenance of EAC statistics databases, harmonisation of practices for compilationof priority statistics, and development of the regional statistics development strategy.The Sectoral Council further noted that the Republic of Uganda did not undertake hernational Population and Housing Census as earlier planned in 2012 and also pointed

out the need for observer missions whenever the Partner States are undertaking theirPopulation and Housing Censuses. On manpower survey, the Sectoral Council notedthat in Kenya, the national manpower survey had been completed and the resultswould be disseminated in October, 2013. In the Republic of Burundi, the surveywould be completed by end of 2014.


(a) directed the Partner States to(i) prioritise compilation of statistics critical for the implementation of the

Common Market Protocol; and(ii) conduct manpower surveys by 2014/15;

(b) directed the Secretariat to


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(i) expedite harmonization of census undertaking and processing in theregion for the 2020 round of census;

(ii) create a framework of harmonizing methods of generating populationprojection by 2017;

(iii) work with Partner states immigration departments to establish a data

collection and processing mechanism/system for Partner States;(iv) facilitate capacity building of immigration staff in Partner states in areas

of data collection, processing, storage and reporting;(c) recommended to Council to direct the relevant Sectoral Council to

(i) expedite the development of an EAC Strategy on Harmonisation ofcurriculum, examinations, standards, certification and accreditation ofeducational and training institutions in respect with statistics;

(ii) coordinate the process of harmonizing the classification of differenttypes of work permits and or residence permits issued by PartnerStates.

On Development of the EAC Regional Statistics Development Plan (RSDP), theSectoral Council noted that a draft EAC RSDP had been developed. The RSDPwould provide the strategic direction for the development and management ofregional statistics. The Sectoral Council further noted that financing of the RSDPshould be considered within the framework of funding EAC activities as opposed toearmarking a specific allocation to statistics.


(a) adopted the EAC Regional Statistics Development Plan (RSDP);(b) directed Partner States and the EAC Secretariat to implement the

recommendations of the RSDP while considering that -(i) the institutional set up as highlighted in the RSDP should await the

conclusion of the EAMU Protocol;(ii) mainstreaming the funding of the implementation of the EAC-RSDP be

within the framework of funding EAC activities;(c) directed the Secretariat to prepare publicity materials and convene advocacy

forums for RSDP at regional and Partner States levels by June, 2014.

On development of a Regional Statistics Policy, the Sectoral Council was informed

that the Sectoral Committee on Statistics had, at its extra-ordinary meeting held on2nd3rdSeptember 2013 in Kampala, Uganda, recommended that an EAC RegionalStatistics Policy be developed. The regional statistics policy would provide acoordinated approach of the Regional Statistical System (RSS) to the demand forregional statistic.

The Sectoral Council considered and approved the Terms of Reference for theConsultancy to develop the EAC Statistics Policy.

3.1.2.2 Progress Report by the Committee on Monetary Affairs

The Sectoral Council noted that the 16th

Ordinary Monetary Affairs Committee (MAC)was convened in Kampala, Uganda on 23rdMay, 2013. The SCFEA noted that the


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MAC had reviewed the Report of the Financial Sector Assessment Program (FSAP)on the EAC region that was conducted jointly by the IMF and World Bank. The reportcovered the macroeconomic environment, financial system and banking sectoranalysis, banking supervision and crisis management, payment systems and capitalmarkets. The Sectoral Council further noted the status of Implementation of previous

decisions on Economic Affairs, Bank supervision and Financial Stability, Accountingand Finance, Human Resources, Information Technology, Legal, Currency andBanking, Payments and Settlement Systems and Financial Markets.


(a) directed the Central Banks to -(i) develop a framework for compliance with capital account convertibility by

May, 2014;(ii) monitor and analyse the impact of short term capital movements on the

EAC Partner States by May, 2014;

(iii) formulate a harmonized Financial Literacy program relating to financialmarkets development and instruments by May 2014;

(iv) harmonize the cheques standards by December 2014;(v) set the timelines for the various studies and report progress to the next

meeting of the SCFEA;(b) directed the EAC Secretariat to convene a regional stakeholder validation

workshop on the draft study report on the assessment of the Pension Sectorwithin the EAC Region towards the end of November 2013;

(c) directed the Republics of Burundi, Rwanda, Uganda and the United Republicof Tanzania to develop proposals for benchmark bonds by May, 2014; and

(d) directed the United Republic of Tanzania to remove nine (9) of the remainingthirteen (13) restrictions on the Capital Account by December 2013.

3.1.2.3 Progress Report by the Committee on Fiscal Affairs

The Sectoral Council noted that progress was being made on fiscal policy mattersspecifically under public financial management that impact on Fiscal Policy, theprogress report on Tax Harmonisation, harmonisation of tax procedures in the EAC,EAC Fiscal convergence matters in relation to transition to EAMU, Harmonisation ofGovernment Finance Statistics and the study on harmonisation of fiscal policies inthe context of EAMU.

On tax harmonisation, the Sectoral Council noted that the process of taxharmonisation was on-going with focus on Excise Tax, Income tax and Value AddedTax had. The Sectoral Council reviewed and approved the draft terms of referencefor the studies to develop a regional policy on excise tax and value added tax andthe terms of reference for the study to develop a regional policy on income tax.

The Sectoral Council also noted the progress made on developing the Code ofConduct against Harmful Tax Competition and the Model EAC Tax Convention forthe Avoidance of Double Taxation and the Prevention of Fiscal Evasion. TheSectoral Council further noted that only the Republic of Rwanda had undertaken

procedures required by her law to bring into force the Double Taxation Agreement(DTA) for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion


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with Respect to Taxes on Income while the other Partner States are in the process ofalso doing so. On harmonisation of Tax Procedures, the Sectoral Council noted thatthe proposed areas for alignment are: taxpayer registration; tax filing and payment;audit procedure; enforcement and recovery; and tax dispute resolution mechanisms.


(a) approved the Terms of Reference of the study to develop -(i) regional excise tax and value added tax policies; and(ii) regional income tax policy;

(b) directed the Secretariat to establish a database on domestic taxes legislationby December 2013 and periodically update the Committee on Fiscal Affairs onthe reforms undertaken in the respective taxes;

(c) took note of the progress made on conclusion of the Draft Model DTA and theCode of Conduct against Harmful Tax Competition;

(d) directed the CFA to develop commentaries for the draft Model DTA by June

2014;(e) directed the Partner States to bring into force the EAC DTA by April, 2014;(f) recommended to Council to direct Partner States not to favour non-EAC

Partner States over EAC Partner States in their DTAs;(g) took note of the progress made on Harmonisation of Tax Procedures;(h) adopted the areas of procedures to be aligned and direct the EAC Secretariat

to facilitate the drafting of the aligned procedures in the areas identified;(i) approved that the method of harmonization in the medium term should be a

set of aligned tax procedures implemented through Directives issued by theCouncil of Ministers; and

(j) directed the Secretariat and the Partner States to Implement the Roadmapwithin the recommended timelines.

3.1.2.4 Report of the EAC Public-Private Partnership (PPP) Diagnostic Study

The Sectoral Council noted that PPPs are an important mechanism in tackling AfricaInfrastructure deficit while simultaneously improving the quality of infrastructureservices and PPPs have a potential in addressing the sizeable deficit inInfrastructure in the EAC. The Sectoral Council further noted that

(a) a diagnostic study which sought to examine the potential role of regional

institutions in developing PPP markets, which encompasses both upstreamand downstream aspects of the PPP project preparation cycle had beenundertaken;

(b) the Multi-Sectoral Council meeting on the documentation for the 2nd EACHeads of State Summit Retreat on Infrastructure Development andFinancing held in Kigali, Rwanda from 12 th15th November, 2012 amongothers considered the report of the diagnostic study and, among others -

(i) directed the Secretariat to forward to the Partner States the DiagnosticStudy Report and the recommendations of the Regional Committeeheld in Kigali, Rwanda on the 12th November 2012 for review andcomments; and


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(ii) recommended to Council to convene a meeting of a Multi SectoralCouncil to consider the Report and the Partner States comments onthe Report by end of March 2013;

(c) the development of PPP was a cross-cutting matter between Ministries

responsible for Finance and Infrastructure. The Sectoral Council observedthat the Committee on Fiscal Affairs had established a subcommittee onPPP development; and

(d) the proposed TORs on the formulation of the Task Force on PPPdevelopment should be executed by the sub-committee on PPP under theCommittee on Fiscal Affairs.


(a) considered and adopted the report of the Diagnostic Study on the RegionalPublic Private Partnerships;

(b) mainstreamed EAC PPP development under the PPP Sub Committee of theCFA under the SCFEA to spearhead the development of a PPP frameworkin EAC;

(c) considered and approved the Terms of Reference for the establishment ofthe PPP sub-committee of the Committee on Fiscal Affairs;

(d) directed the Secretariat to mobilize resources for the operations of the sub-Committee on PPP Development; and

(e) recommended to Council to designate the East African Development Bank(EADB) to host the PPP Regional Resource Centre.

The Council

(a) took note of the progress made on conclusion of the Protocol on theEstablishment of the EAC Monetary Union, (EAC/CM 28/Decisio n 23);

(b) adopted decisions of the 2ndMeeting of Sectoral Council on Finance andEconomic Affairs, (EAC/CM 28/Decisio n 24);

(c) directed the relevant Sectoral Councils to develop an EAC Strategy onHarmonisation of curriculum, examinations, standards, certification andaccreditation of educational and training institutions in respect withstatistics in collaboration with the Inter-University Council for EastAfrica, (EAC/CM 28/Directive 09);

(d) reiterated its previous decision that Partner States which are yet to doso, ensure that they bring the East African Community Double TaxationAgreement into force by April, 2014 (EAC/CM 28/Decisio n 25);

(e) directed Partner States not to favour non-EAC Partner States over EACPartner States in their Double Taxation Agreements(EAC/CM 28/Dire

Final Signed Report for the Ministerial Session 28th Meeting of the Council

Documents

Transcript of Final Signed Report for the Ministerial Session 28th Meeting of the Council