Joint Meeting between PSC, and PRC Budget (GSCBFAM), on Financing PSOs and PSC Activities
Date | 21 October 2024
Tomorrow (22 October), the African Union Peace and Security Council will convene a virtual engagement with the Sub-Committee of the Permanent Representatives Committee (PRC) on General Supervision and Coordination on Budgetary, Financial, and Administrative Matters (GSCBFAM).
The session is expected to commence with an opening statement by the PSC chair of the Month, Mohamed Omar Gad, Permanent Representative to the African Union and Chairperson of the AU PSC for October. Bankole Adeoye, Commissioner of Political Affairs and Peace and Security Department is also expected to make a statement. The last time the PSC held such a meeting was on 16 September 2022, it involved the GSCBFAM and the Board of Trustees of the AU Peace Fund. That meeting featured remarks from the Deputy Chairperson of the AU Commission, the Chairperson of the Board of Trustees of the Peace Fund, and the Chairperson of the AU Committee of 15 Finance Ministers (F15).
The GSCBFAM’s role has evolved over time. Originally known as the Advisory Sub-Committee on Administrative, Budgetary and Financial Matters, it was established as the successor to a similar committee within the Organisation of African Unity (OAU). Recognising the need for a more robust oversight body, the AU Executive Council in 2016 called for the committee’s reform and renaming.[1] This resulted in the establishment of the Sub-Committee on General Supervision and Coordination on Budgetary, Financial and Administrative Matters with its expanded mandate and strengthened authority. The mandate of the GSCBFAM is to have a financial oversight of the African Union (AU), ensuring the organisation’s fiscal health. It examines the proposed budget crafted by the AU Commission, assess administrative matters, and dives deep into the financial transactions of both the Commission and regional offices. This close review allows the GSCBFAM to identify areas for improvement and ensure efficient, transparent and accountable use of resources.
The GSCBFAM plays a crucial role in managing unforeseen circumstances. They consider requests from the Commission for budget adjustments to accommodate urgent decisions or projects and address unexpected expenditures. In addition to evaluating the current financial landscape, the GSCBFAM contributes to shaping the AU’s future financial regulations. They review draft financial rules before submission to the PRC for consideration. Once approved by the Executive Council and, ultimately, the Assembly, these regulations establish a framework for responsible financial management within the AU.
As noted, this is not the first time that the PSC engages the GSCBFAM but the focus and context of that engagement was different. Additionally, the PSC during the past couple of years has activated its role in presenting and defending its budget with the PRC in accordance with paragraph 117 of the Manual on the Working Methods of the PSC. GSCBFAM is only the second PRC sub-committee, next to the Sub-committee on Democracy, Governance and Human Rights, to have engagement with the PSC. This session marks the first occasion for direct engagement between the PSC and the GSCBFAM with a focus on the budget for AU peace and security work beyond and in addition to the Peace Fund.
Considering that the Chairperson of the PSC for October is the Chairperson of the GSCBFAM, this meeting is informed by the appreciation of the crucial role that the Sub Committee on GSCBFAM plays in the financial management of the Union’s operations including funds that are used for the peace and security work of the Union and the need for close coordination between them for aligning the requirements of the PSC for executing its mandate with allocation and responsible use of funds. This session aims to exchange on the processing of budgets for all AU peace and security activities, financial accountability in the use of funds including compliance with the AU financial rules and regulations, and whether and how the budget process provides unforeseen peace and security interventions.
According to the African Union’s budget for 2025, as identified by the Executive Council during the previous mid-year summit, the breakdown of the programmatic budget reveals several allocations for peace and security activities. This includes funding for the Peace and Security Council itself, which constitutes $1,782,979 of the program budget, along with other institutions such as the PCRD and the Africa Center for Counter Terrorism Research, which also has allocated budget lines in the AU program budget. Additionally, Peace Support Operations represent 9% of the total budget, including various operational expenses. Given these expenditures, it is vital for the PSC to engage with the PRC Sub Committee to gain a clear understanding of the funding directed toward peace and security initiatives undertaken by the Union. A better comprehension of the allocated budget for institutions that support and facilitate the African Peace and Security Architecture (APSA) will enable the Council to make informed decisions.
When making these decisions, the PSC can consider existing budget allocations for specific aspects of the APSA and evaluate their financial capacity to effectively carry out assigned tasks. For example, when the Council engages in conflict prevention activities, the budget required for such activities and how they would be sourced are expected to constitute part of the considerations in the PSC’s engagements. This helps to ensure that proposals for PSC decisions are put forward with due consideration of the financial requirements.
The other aspect that tomorrow’s session is expected to address includes the kind of working arrangement that the two sides may establish. Given that the PSC is a policy body, but the sub-committee of the PRC is a subsidiary body, the session affords an opportunity to determine the appropriate format for engagement between the PSC and PRC sub-committees broadly speaking. In this respect, the PSC may establish a sub-committee at the ambassadorial level for engagement with PRC sub-committees, including GSCBFAM.
Additionally, tomorrow’s session may explore the occasions and timelines for the convening of engagement between the PSC, potentially through the sub-committee for engagement with relevant PRC sub-committees that the PSC may establish, and the GSCBFAM.
The expected outcome of the session will be a Communique. The Council may welcome this engagement with the PRC Sub-Committee on GSCBFAM. To this end, the Council may commend the Sub Committee on its endeavours for supporting/facilitating the budget operation of the Union and more specifically, the areas that support the mandate of the PSC. The Council may affirm the need to strengthen collaboration and cooperation between the PSC and the Sub-Committee, particularly when the PSC makes decisions that have budgetary implications. In this regard, the Council may decide to institutionalise the convening between the PRC Sub Committee on GSCBFAM and the PSC to take place on an annual basis. Considering that the GSCBFAM is a sub-committee of a policy body rather than a policy body itself, the PSC may establish a sub-committee at the ambassadorial level for engagement with PRC sub-committees including GSCBFA.
[1] (EX.CL/Dec.916(XXVIII) https://portal.africa-union.org/DVD/Documents/DOC-AU-DEC/EX%20CL%20Dec%20931%20(XXIX)%20_E.pdf