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Home EAC

Mathuki denies graft allegations at EAC

The Brief by The Brief
11th March 2024
in EAC
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Mathuki denies graft allegations at EAC

EAC Secretary General Dr Peter Mathuki on the margins of the 37th Ordinary Session of the AU Assembly on February 16, 2024/ EAC

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NAIROBI – East African Community Secretary General Dr Peter Mathuki has denied allegations of corruption levelled against him.

Through a press release on Monday responding to the EastAfrican newspaper lead story headlined “Why Mathuki has to go”, EAC Secretariat said the allegations are “baseless, malicious, unfounded and an attempt on assassinating the character of theSecretary General”.

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The Secretariat said the EAC operates in a structured manner where there are proper checks and balances on all its operations, and such allegations have not been levelled against it by the relevant offices.

” The Council of Ministers supervise the EAC secretariat. At no point in time has there been any queries raised by the Council of Ministers as to the allegations on lack of appropriation of funds by the Secretariat as the Council always gives prior approval on expenditure of funds of the Community as stipulated in EAC’s Financial Rules and Regulations including what is published in the article,” the statement said.

NO ADVERSE AUDIT REPORT

It added that there is an Audit Commission which prepares a report on all activities of the Community conducted by all partner states, in line with International Audit Standards.

“Since the Secretary General assumed office three years ago, there has never been any adverse audit reports on his part or the Secretariat and these audit reports remain available at the offices of the Community,” it added.

The Secretariat noted that its operations and activities are continually audited to ensure compliance with the laid down standards and procedures.

“”It is therefore misleading for The East African to publish information that is unsubstantiated and to say the least, malicious and misleading, and particularly without checking the second side of the story,” it said.

Although the paper maintains it reached out to Mathuki through messages, EAC said it never sought the Secretary General’s side of the story on the allegations before the article was published as the rules of natural justice dictate.

In changes in Foreign Services made by President William Ruto on Friday, Mathuki was recalled from Arusha two years before his five-year term ended, and was nominated as Kenya envoy to Moscow.

President Ruto nominated international civil servant Caroline Mwende Mueke to replace him within the provisions of Article 67 of the EAC treaty.

EAC Secretary General Peter Mathuki pays a courtesy call on Prime CS and CS for Foreign and Diaspora Affairs Musalia Mudavadi in Nairobi on March 8, 2024/ EAC

46MILLION GRAFT ALLEGATIONS

At the centre of Mathuki troubles are allegations of misappropriation of $6 million Peace Fund at the Secretariat.

The allegations were made right in front of President Ruto on March 5, during the Third Sitting of the Third Session of the Fifth East Africa Legislative Assembly sitting in Nairobi.

Uganda EALA legislator Musamali Mwasa Paul during the debate on President Ruto’s speech said member countries should deploy to the EAC Secretariat competent people who are “ideologically oriented and clear about the mission and vision of the East African integration agenda.

“If we only deploy for the sake of it, or if we don’t pay attention to whoever is being deployed at EAC, right from the Secretary General, to the lowest cadre, Your Excellency [President Ruto], we risk employing merchants. They are just going there to look for money. We risk employing corrupt people. They will go there and start squandering the little support going there.

“We also risk employing collaborators. Today Your Excellency, and the Secretary General is the focal point, the centre of the accounting officer in the community and the current holder is you, the President.

“I want to implore on you that you take keen interest by ensuring the secretary general [Mathuki] delivers to the expectations and aspirations of the people of East Africa,” Musamali said, catching the attention of President Ruto, who gestured as he made his submissions.

Over $6 million that has been collected as far as I am concerned, that money has been spent and has never gone through appropriation. The SG never brought it to parliament for appropriation.

Dennis Namara, EALA MP, Uganda

Dennis Namara, MP for Uganda, was more straightforward, asking EAC Cabinet Secretary and by extension the Kenyan government and the summit to get rid of Mathuki.

“It is not too late to liberate the East African Community. The Secretary general you gave us from Kenya, I was wondering, is this the best export Kenya could send to the community?” Namara posed.

The member, who is also the chairman of the Finance sub-committee, further argued that the financial rules of the Treaty establishing the EAC, Budget Act, and all other legislations provide that every money coming into the Community must be appropriated.

“Over $6 million that has been collected as far as I am concerned, that money has been spent and has never gone through appropriation. The SG never brought it to parliament for appropriation.

“The Council of Ministers cannot watch money for the people of East Africa being squandered. What is the reason for the secretary general with is own budget?” he said.

Dr Mathuki, who was present, ignored the criticism and instead restrained himself to Ruto’s speech.

President William Ruto during the Third Sitting of the Third Session of the Fifth EALA at Parliament Buildings, Nairobi, on March 5, 2023/ PCS

PETITION TO COUNCIL OF MINISTERS

 in August 2023, a petition was sent to the Council of Ministers raising a number of allegations against Mathuki, touching on corruption and mismanagement of EAC affairs.

The petitioner claimed things were “getting out of hand”, under Mathuki, that the EAC resources were being mismanaged and that the Community had become a one-man show in disregard of the treaty and the instruments in place such as the Financial Rules and Regulations, Procurement Manuals, Human Resources Manual and Staff Rules and Regulations.

“The USD. 500,000 Peace Fund, cannot be properly accounted for and now the Secretary-General is trying to divert the Partner States Fund into some of the activities of the DRC. The Council should engage the services of the Anti-Corruption agencies from the Partner States to investigate some of the cases highlighted herein,” the petitioner said in part.

The petitioner also raised concerns about human resource management in the EAC, warning that he “should be reminded that he is just an employee of the Community and he can be recalled and removed from office and another individual brought on his place”. 

But Mathuki, in the Monday statement, said “the huge milestones” achieved by the Community during the three years of his tenure cannot be gainsaid and is open for scrutiny by the public.

“This includes the expansion of the Community to eight (8) Partner States and increased Intra-EAC trade to over 25%,” EAC said.

Tags: EAC corruptionEAC SecretariatPeter MathukiPresident William Ruto
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