Parliament wants prosecution to pursue those implicated in public assets mismanagement cases

By The Inspirer

The Plenary Sitting of the Chamber of Deputies has requested the Ministry of Justice to ask the National Public Prosecution Authority to prosecute those who were involved in public asset mismanagement cases.

The resolution was adopted on Thursday, November 12, 2020, after the Public Accounts Committee (PAC)’s proposal that based on the magnitude of the issues that were identified through its assessment of the Auditor General’s report of the financial year 2018/2019, there are public assets management irregularities that should be looked into.

Here are some of the cases in question:

In BDF: losses associated with the failure to consider business risks

Lawmakers said that the Business Development Fund (BDF) ignored risks highlighted by its investment committee and monitoring team before compensating claims [of loss by financial institutions].

According to the Auditor General (AG)’s report, BDF Investment Committee and monitoring team assessed 5 claims associated with committed credit guarantee worth over Rwf548 million as ineligible for compensation.

However, BDF management approved compensation of these claims without evidence of clearance of the investment committee and monitoring team.

In addition, the AG’s report indicated that commercial banks highlighted the financial risks of two projects as the clients were not compliant with loan repayment terms.

However, it said, BDF did not consider such risks and committed guarantees amounting to over Rwf415 million. Both projects failed and BDF compensated over Rwf45 million by the time of the audit in March 2020.

The Lower House wants accountability for such money paid in compensation for failed projects, an issue that it said stemmed from not heeding the risk warning from the financial institutions.

Another issue in BDF that Parliament wants to be investigated is the provision of credit guarantees to 13 ineligible businesses including those owned by foreigners, which made BDF pay over Rwf1 billion in compensations for six failed projects.

In the Rwanda Agriculture Board (RAB), the Parliament pointed to a tender worth Rwf299 million that was offered by the Rwanda Agriculture and Animal Resources Development Board (RAB) for rehabilitating dykes at Rurambi Marshland and Gashora marshlands in Bugesera District, whereby an additional contract worth over Rwf194 million was signed two months before the first contract was over.

For the National Agricultural Export Development Board (NAEB), the Lower House expressed concern over a tender worth over Rwf229 million for the preparation of agroforestry seedlings that the body offered.

It said that there were two additional contracts that were made without the involvement of the NAEB tender committee.

Yet, it is the tender committee that should handle matters related to public offers.

The Parliament also exposed the issue of procuring into Ruhengeri Hospital medicines that were three months before the expiry date.

Yet, lawmakers said that there was no evidence that the drugs would be consumed within that short period when they were safe to consume.

Gatsibo District also has a project that made lawmakers urge an inquiry into how public finances are managed. The District offered a tender to build a seven-kilometre long drain for over Rwf760 million, but the lawmakers were dissatisfied as only three kilometres of drain were built for the same amount.

A tender to rehabilitate 3.9 kilometre Kadahenda-Nyakiriba 3 road in Nyabihu District for more than Rwf758 million, but the rehabilitation works stopped and the contract was canceled.

However, the deputies said that two years after, the contractor was asked to resume works and was given an advance payment of over Rwf151 million, but never returned to complete the works.

Misappropriated tourism revenues

Deputies also urged prosecution against those involved in causing a tourism-related loss of $408,486 (equivalent to over Rwf388 million based on current exchange rates).

The tourism revenues were paid by tourists between August 2018 and January 2019.

This money, AG audit exposed, was collected manually instead of using the official online platform (Irembo system), which was supposed to be used. It revealed that this money did not arrive at the RDB bank account by the time of audit in March 2020.

“After analysing issues that were identified in different entities, … we summoned them so that they provide explanations for mistakes that were identified, but that cases where crimes are suspected get pursued by MINIJUST (Ministry of Justice  in partnership with the prosecution,” said PAC Chairperson, Valens Muhakwa.