Decision on the Scale of Assessment and Implementation of Alternative Sources of Financing the African Union

DECISION ON THE SCALE OF ASSESSMENT AND IMPLEMENTATION OF
ALTERNATIVE SOURCES OF FINANCING THE AFRICAN UNION
Doc. EX.CL/948(XXVIII)

The Executive Council,

1. TAKES NOTE of the Report of the Ad-Hoc Ministerial Committee on the review of the scale of assessment;

2. RECALLS Assembly Decisions ref. Assembly/AU/Dec.561(XXIV) and Assembly/AU/Dec.578(XXV);

3. RECOMMENDS to the Assembly to review its previous decision that Angola be assessed at twelve percent (12%) to eight percent (8%) and that the short fall of the four percent (4%) be equitably shared by Member States falling in Tiers 2 and 3;

4. ALSO RECOMMENDS that the attached table of scale of assessment forms part of the decision on the new scale of assessment;

5. REQUESTS the PRC to ensure the following:

i) That its Sub-Committee on Administrative, Budgetary and Financial Matters is strengthened, reformed and renamed as the Sub-Committee on General Supervision and Coordination on Budgetary, Financial and Administrative Matters;

ii) Enlarge the mandate of the said Sub-Committee to henceforth, also perform a general coordinating and supervisory role in collaboration with the other relevant Sub-Committees;

iii) That the Sub-Committee is used as the platform for Member States to effectively interact and exchange with the Commission, on a quarterly basis;

iv) It receives, through the said Sub-Committee, quarterly reports from the Commission on the Operational and Program budget’s performance, execution and absorption. These reports will serve as a basis for deliberations for the next disbursement of funds;

v) It receives, through the said Sub-Committee relevant information from the Commission on the status of contributions by Member States and Partners;

vi) It reports and makes appropriate recommendations thereon to the Policy Organs.

6. ALSO REQUESTS the PRC to establish a PRC Sub-Committee on Budgetary Matters which will:

i) Be specifically responsible for the Technical evaluation of the AU draft budget;

ii) Monitor, on a quarterly basis, the efficient utilization of financial resources and budget implementation;

iii) Reinforce the technical evaluation of the draft budget and in this regard urges Member States to enlist the assistance of experts from their Ministries of Finance, to participate in the deliberations of the said Sub-Committee;

iv) The Membership of this Sub-Committee shall be a Committee of the Whole.

7. DECIDES to restructure the Ad-hoc Ministerial Committee on the Scale of Assessment as follows:

i) Becomes a Standing Ministerial Committee on the Scale of Assessment;

ii) For the purposes of streamlining and enforcing the collection of contributions, the Ad Hoc Ministerial Committee on the Scale of Assessment shall take over the mandate of the PRC Sub-Committee on Contributions which shall henceforth be abolished;

iii) The Ad Hoc Ministerial Committee on the Scale of Assessment shall therefore, be reformed and renamed as the Ministerial -Committee on the Scale of Assessment and Contributions.

8. FURTHER DECIDES that upon implementation of the alternative sources of funding of the Union, and to ensure accountability and transparency, the Board of External Auditors, shall:

i) Submit its reports simultaneously to the Chairperson of the Commission and that of the PRC through the Chairperson of the PRC Sub-Committee on General Supervision and Coordination on Budgetary, Finance and Administrative matters;

ii) Submit an interim report to the PRC before the June/July ordinary session of the Executive Council every year;

iii) Submit its reports directly to the Sub-Committee on General Supervision and Coordination on Budgetary, Financial and Administrative Matters every six (6) months;

iv) Be re-constituted and henceforth be composed of five (5) nominated members (one per region) plus the members of the first tier.

9. DECIDES that the Ministerial Committee on the Scale of Assessment and Contributions shall remain seized of the matter of scale of assessment with a view to:

i) Revising and aligning the mandates of other relevant Sub-Committees of the PRC and existing mechanisms;

ii) Clarifying the interaction between all the relevant Sub-Committees and existing mechanisms affected by the proposed re-structuring pursuant to Assembly Decisions Assembly/AU/Dec.561 (XXIV) and Assembly/AU/Dec. 578(XXV) adopted by the 24th Ordinary Session held in Addis Ababa, Ethiopia and 25th Ordinary Session held in Johannesburg, South Africa in January and June 2015 respectively.

10. REQUESTS the following:

i) The Commission, particularly the Office of Legal Counsel, to provide all the necessary support to ensure the implementation of the above decision;

ii) The Commission to assist the Permanent Representatives of the Ministerial Committee on Scale of Assessment and Contributions in the review of the Terms of Reference of the relevant Sub-Committees and mechanisms affected by the proposed re-structuring;

iii) The Ministerial Committee on the Scale of Assessment and Contributions to report on the implementation of this decision to the next ordinary session of the Executive Council scheduled for July 2016.