Lawmakers urge probe into mismanaged public assets worth billions

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Lawmakers urge probe into mismanaged public assets worth billions
Lawmakers urge probe into mismanaged public assets worth billions

Africa-Press – Rwanda. The Lower House has called for a probe into the mismanagement of public assets worth billions of Rwandan Francs in different public entities. The lawmakers have thus asked the Ministry of Justice to ask the National Public Prosecution Authority to prosecute those responsible for malpractices.

They made the resolution on Tuesday, November 9, as they adopted the report of the Public Accounts Committee (PAC), which assessed the Auditor General’s report for the financial year 2019/2020.

The malpractices include a supplier paid twice by the Water and Sanitation Corporation Ltd (WASAC). According to the AG’s report, over Rwf103 million was paid twice to the supplier – Africa General Trading – a supplier who provided WASAC Ltd with water treatment chemicals.

The money was paid to the same supplier through separate WASAC Ltd accounts in Bank of Kigali (BK) and Guarantee Trust (GT) bank. WASAC said it recovered the money, but could not get over Rwf20 million which may have been made through accumulated interest that the money would generate for about two years.

Another issue is in Rwanda Utilities Regulatory Authority (RURA), where over Rwf56 million (lump sum) was paid to its six employees contrary to the law.

In Ruhengeri Referral Hospital, the MPs want a probe into circumstances under which insurance premiums of Rwf203 million paid for motor vehicles and motorcycles was over three times more than their actual value of Rwf67.1 million. The Auditor General’s report described this as grossly over-insuring these assets.

The disappearance of 124 sacks of cement that was meant for the construction of classrooms in Nyamasheke District, and 333 sacks that were designed for the construction of classrooms in Ngororero District in Western Province, is also one of the issues that parliamentarians want investigated.

Malpractices in awarding tenders

The Chamber of Deputies requested the National Public Prosecution Authority to sue those who are responsible for the malpractices identified in the awarding of tenders:

They include a tender for rent of offices for the Supreme Court at over Rwf117 million per month that was awarded by the Rwanda Housing Authority where the agreement was reached without the involvement of the institution’s tender committee and the legal advisor.

In the National Rehabilitation Service (NRS), a tender for food items was offered to a bidder who gave the highest prices that resulted in over Rwf161 million an extra amount compared to those given by other bidders.

A tender to buy dairy equipment and testing tools worth Rwf749 million, which was offered by Rwanda Agriculture Board (RAB) and it was realised that the tender document was changed after its publication, on May 09, 2019. However, it was noted that these amendments were not approved by the internal tender committee.

The Auditor General’s report indicated that RAB later signed a framework contract with a contractor called SALTEL for the supply of dairy equipment and testing tools without seeking legal opinion from the Minister of Justice, which is in contravention of the procurement law.

Also, in RAB, the Auditor General’s report noted that contrary to the provision of article 90 of law N°62/2018 of 25/08/2018 governing public procurement, tenders worth over Rwf2.1 billion for technical studies and supervisions works [for valley dam repair for irrigation in Eastern Province], were awarded to the same bidder.

This provision states that it is prohibited for a consultant who has been hired by a procuring entity to provide consulting services for the preparation or implementation of a tender or a company connected to the consultant shall not be allowed to bid for providing goods, works or consultant services related to that tender.

In the Ministry of Trade and Industry (MINICOM), a tender for events management worth Rwf173 million was given to a contractor who fell short of requirements in the tender document.

Also, MINICOM offered a tender of more than Rwf35 billion and $7 million (about Rwf7 billion) for the supply of petroleum products, but received a performance guarantee which was less than the 10 percent of the value of the tender provided for by the law.

In the Rwanda Education Board, a tender for the purchase of textbooks showed abnormal cost increase as it was given at Rwf195 million against the planned Rwf108 million budget.

Still in REB, MPs said that three tenders worth Rwf4.2 billion were awarded to bidders who fell short of requirements set in the tender document. The Parliament requested the Prime Minister to submit, within eight months, a detailed report to the Chamber of Deputies on how the decisions taken by the MPs were implemented.

PAC Chairperson Valens Muhakwa said that there were irregularities in many public tenders, pointing out that a deep inquiry was needed to establish the causes and hold those responsible accountable.

“Eight months is an adequate period for the implementation of those resolutions. That’s what we based on to request the Prime Minister to present an implementation report, and then the follow up is made [by MPs] to ensure that they were executed,” he said.

The Lower Chamber of Parliament requested the Prime Minister to reform, within six months, the organisational structure and functioning of WASAC with aim to definitely address the persisting issues in its governance, management including public funds management as indicated by the Auditor General’s reports from 2014-2015 to 2019/2020.

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