Rwf2.9bn laptop debt: Gov’t explores recovery options

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Rwf2.9bn laptop debt: Gov’t explores recovery options
Rwf2.9bn laptop debt: Gov’t explores recovery options

Africa-Press – Rwanda. The government is weighing new strategies to recover nearly Rwf2.9 billion owed by Africa Investment Smart Distribution (ASID), a private distributor of Positivo laptops for schools.

The options, which include allowing the company to repay part of the debt through services like laptop refurbishment and school internet installations, were discussed by Rwanda Information Society Authority (RISA) officials before the parliamentary Public Accounts Committee, on July 7.

The arrears are owed by Africa Investment Smart Distribution (ASID), which was entrusted with selling laptops manufactured by Positivo-BGH, a Latin American tech firm that began local production in Kigali in 2015 under a deal with the Rwandan government, which procured the devices and supplied them to ASID on credit for resale.

“The company has started repaying the arrears. The debt has since dropped from over Rwf3.5 billion to Rwf2.9 billion,” Innocent Bagamba Muhizi, the CEO of Rwanda Information Society Authority (RISA), said while appearing before the Public Accounts Committee over issues raised in the Auditor General’s report for the financial year ended on June 30, 2024.

“We are revisiting the repayment schedule, which requires the arrears to be cleared by the end of this year. If they fail to meet the deadline, we will consider extending the timeline.”

ASID received the laptops on credit, with the expectation that proceeds from sales would be reimbursed to the government. However, delayed repayments raised concerns from lawmakers.

Muhizi explained that any future engagements with ASID or similar firms would be subjected to stricter checks.

“We assess the scope and quality of their proposed services before granting any operational clearance. The aim is to avoid a repeat of previous issues,” he said.

He added that an inspection team is already in place to verify all proposed activities and would continue conducting monthly audits once implementation begins. Costs related to inspections will also be reviewed accordingly.

Among the proposed areas where ASID could contribute is the refurbishment of laptops currently in schools. He said that many of the devices are reportedly out of service and could be restored for continued use, thereby reducing the need for new purchases and cutting down ASID’s debt.

He cited an example, noting that around 10,000 laptops in public and private schools could be collected for refurbishment, and that undertaking this work could serve as a way to offset the arrears.

Installing internet infrastructure in schools

Another proposal involves installing internet infrastructure in schools. Muhizi indicated that cabling for around 100 schools could be among the services exchanged in lieu of cash payments.

However, MPs raised concerns about fairness in the procurement process.

MP Eugene Mussolini said that such opportunities should be open to competition, warning against awarding contracts without giving other capable firms a chance to bid.

MP Valens Muhakwa, the PAC Chairperson, questioned whether budget limitations or a lack of technical skills in the companies could hinder the proposed activities.

Muhizi assured the committee that transparency and fairness would be prioritised.

“Where competition is necessary, we will ensure it takes place. Not all activities require heavy financial investment. Some, like network design, depend more on technical expertise. These are aspects we are carefully considering,” he added.

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