Member States Urged to honour Contributions as Remittances Fall

• The slow remittance to the budget had resulted in utilization of reserves to fund planned activities.
• Over the years approved sanctions have not been rigorously applied on member States that have defaulted in paying their contributions.
• Article 171 of the COMESA Treaty provides for sanctions for Members States that are in arrears for more than two years.
Common Market for Eastern and Southern Africa (COMESA) Committee on Administrative and Budget matters has urged member States to meet their budgetary contributions to the annual budget of the Secretariat and its institutions.
In a statement issued to Money FM News by COMESA Corporate Communication Unit, the call followed a slow funding of the annual budget with four out of 21 Members States having fully paid their contributions for 2021.
Speaking at the 42nd Meeting of the COMESA Committee on Administrative and Budget matters, COMESA, Secretary General Chileshe Kapwepwe, noted that the slow remittance to the budget had resulted in utilization of reserves to fund planned activities.
Ms. Kapwepwe said over the years approved sanctions have not been rigorously applied on member States that have defaulted in paying their contributions to the annual budget and this needs to change.
“This has been a major contributory factor to the financial position that we now find ourselves in, where a few member States fund the organization,” said the Secretary General.
According to the statement, as of 21st June 2021, the Secretariat had received 21.6% contribution to the 2021 budget against 50% threshold requirement under the COMESA Treaty.

“As of 21st June 2021, the Secretariat had received 21.6% contribution to the 2021 budget against 50% threshold requirement under the COMESA Treaty. The 50% is expected within one month from the beginning of the financial year to which they relate, and the remainder within six months from the beginning of that financial year.”

However, Article 171 of the COMESA Treaty provides for sanctions for Members States that are in arrears for more than two years.