How can irregularities in social protection programmes be fixed to effectively reduce poverty?  

By Staff writer.

Recommendations from different researchers, activists and reports say that there are many irregularities in social protection programmes that must be fixed so as to effectively reduce poverty as part of the goal among Sustainable Development Goals to be achieved by 2030.

One of the social protection programmes is VUP programme that was established in 2008 in a bid to spur economic growth, job creation and extreme poverty reduction through local participatory mechanisms.

The programme provides direct support to extremely poor, severely labour-constrained households so that they are able to meet their most basic needs and protect them from destitution.

It also includes public works projects that provide accessible and appropriate employment opportunities to moderately labour-constrained households.

In addition, the beneficiaries get small livestock such as chickens, rabbits, goats and pigs and agricultural inputs such as seeds, seedlings, fertilizer as well as small-scale agricultural processing equipment such as milling machines and small equipment for off-farm micro-enterprise development (carpentry tools, sewing machine) for sustainable livelihood.

Any member of a household in Ubudehe Category 1 may apply to the VUP for technical or vocational skills training while others benefit from a microcredit scheme that provided small loans at low interest rates to individuals or groups.

Poverty reduction which is the core principle of the programme is the 1^st among 17 Sustainable Development Goals (SDGs) set up by UN.

However, different activities and reports say that there are some irregularities that must be fixed so that the programme help achieve SDGs by reducing poverty levels among vulnerable households.

While some beneficiaries’ poverty levels have reduced, there are others whose livelihood might have not improved due to such irregularities, reports indicate.

According to the survey findings by Transparency International Rwanda in September, 2018 lack of compensation nor does expropriation of damaged lands and crops during VUP-Public works projects affect livelihood of citizens.

The survey was conducted in four districts namely Nyanza, Kirehe, Musanze and Rubavu) with a sample of  1, 606 citizens on whom added resource persons involved in or knowledgeable of the process and dynamics of implementation of VUP-PW projects.

“There are grievances related to mainly to lack of compensation for the properties (generally crops and land portions) affected by VUP-PW projects and delays of wage payment, which are obviously vital for the subsistence those people,” citizens express in the report.

Compensation of properties affected by the implementation of VUP-PW projects appears to be a serious issue faced by the citizens, the survey shows clarifying that compensation is the issue experienced by the highest proportion of the respondents namely two among 10 respondents.

Additionally, findings show a low level of respondents’ agreement with application of core principals of expropriation in Rwanda such as provision of compensation, timely provision of compensation and respect of the expropriation law in terms of property valuation.

In general no compensation is given to people whose properties are affected by VUP-PW projects, the report shows.

VUP managers argued that there is no compensation because not only those projects are in the interest of the citizens but also that the latter citizens are consulted beforehand and agree to have the projects implemented without compensation.

On their side, citizens recognize that information and sensitization meetings are organised to that end, but complain that even crops on the affected portions of land are not compensated.

Citizens say road construction damage some portions of maize crops and leave a house hanging and never get compensated.

Transparency says the absence, insufficiency or delay of compensation does not only violate the right to property but also worsens the socioeconomic situation of households especially in poor communities such as those targeted by VUP-PW projects.

Lack of feedback, delayed feedback, unfair examination of complaints (partiality) emerged among major reasons for dissatisfaction.

Auditor general

According to Auditor General Report as of June 2019, there are irregulaties in VUP programme delivery including low percentage of loan recovery under VUP financial services.

The review of VUP financial services report revealed that from 2009 to 2015, LODA disbursed loans totaling RWF20.8 billionto VUP financial services’ beneficiaries to 30 districts in the country.

The total loans and interest amounted to Rwf21, 271,640,162.

The loan repayment was supposed to be done in instalment within a period not exceeding 12 months.

By end of previous year 30 June 2018, Rwf6, 322,600,464 was outstanding.

Subsequent to the year ended 30 June 2018, only Rwf527, 678,140 representing 8% of the outstanding balance of Rwf6, 322,600,464 had been recovered.

Hence, loans balance of Rwf5, 794,922,324 had not been recovered by the time of audit.

These loans have been outstanding for a period ranging from 6 to 10 years, the report shows.

Loans given to beneficiaries may ultimately not be recovered and lead to eventual loss of public funds and this may hamper Government efforts to realize the intended objectives

The money, auditor says, the unrecovered could be supporting other vulnerable people to get out of poverty.

It also indicates delays in payment of direct support to beneficiaries.

Guidelines issued by LODA in July 2018 states that direct support must be paid every month not later than 10 calendar days after that month.

However, as highlighted in the previous audit report for the year ended 30 June 2018, it was again noted that VUP direct support funds amounting to Rwf1.2 billion delayed to reach beneficiaries for a period ranging from 2 to 190 days.

This was noted in sixteen (16) districts.

Consequently, delay to transfer direct support funds to beneficiaries on time affects their wellbeing and hinders the achievement of the program objectives.

The irregularities also include delay in payment of casual laborers in Classic VUP public works.

“Therefore, delayed payment of VUP public works’ beneficiaries may negatively affect their wellbeing. Further, the intended objectives of VUP public works may not be achieved as envisaged,” the auditor says.

There are cases whereby VUP beneficiaries’ wages amounting to Rwf219, 397,949 were paid with delays ranging from 2 to 158 days.

This was noted in eight districts, the report shows.

The audit noted cases whereby VUP classic works beneficiaries’ wages amounting to Frw 1,484,643,052 were paid with delays ranging from 2 to 128 days.

This was noted in eighteen districts.

Consequently, delay in paying wages to beneficiaries of VUP expanded public works implies that beneficiaries’ welfare is not timely improved as envisaged by the program.

“This may hinder achievement of the program intended objectives.”

Embezzlement

May reports have indicated embezzlement in social protection programmes?

In 2016, Prosecution had recorded over Rwf1.5 billion in public funds that went missing in the previous two fiscal years, of which the biggest chunk (Rwf1.3 billion) was dedicated to social protection programmes such as community-based health insurance scheme (Mutuelle de Santé), worth about Rwf557 million, Vision Umurenge Programme (VUP) (Rwf454 million), and Girinka programme (Rwf269 million.

Citizen Rights and Development speaks out

According to CRD (Citizen Rights and Development) Rwanda, as GoR strives to achieve Sustainable Development Goals, especially Goals1: that aims eradicate poverty. The government has set poverty reduction initiatives that aim to support poor people to gradually shift from poverty to self-resilience.

However, it says there is a strong need to put in place mechanisms to monitor effective implementation of those initiatives at local level.

“Communities, civil society organizations and opinion leaders must have full information about those initiatives and planned budget for accountability, and ensure fairness in selection of beneficiaries, distribution of resources and equal access to opportunities.”

State of the national budget today

Of the 3 key pillars in VUP, the direct support component has reached all 416 sectors in the country, while the micro-credit scheme and public works components have already reached more than 300 sectors.

Figure show that 70% of the beneficiaries with full-filled criteria are the ones who get the jobs in public works due to limited budget meaning the goal to eradicate poverty is yet to be met.

Justine Gatsinzi, the division manager of social protection at LODA on January 12, 2021 said, on National Broadcasting Agency, that the goal is for all VUP pillars to reach all beneficiaries.

“The budget is not enough for all pillars to reach all sectors at once but it is our goal. Next fiscal year, we have a plan for all sectors,” he said.

The VUP program began in 2008 with a budget of Rwf1.5 billion in 30 sectors, i.e. one sector in each district.

The budget has increased to Rwf70 billion so far, he said.