NYARUGENGE - Finance Minister James Musoni has warned chief budget managers on mismanagement of public resources with much emphasis on public procurement process.

A market survey should be conducted to know the price range and tenders whose prices are not in that range should be cancelled.

"No one should award a tender without reserve price especially on goods and services,” Musoni said.

He said this while opening a one-day workshop for chief budget managers from government institutions at Serena Hotel on Friday.

The meeting will identify the challenges and loopholes to build a strong public financial management system. Budget managers were advised to re-prioritise in their budgeting identify where to spend and give value for money.

New directives from the cabinet put a moratorium on budgets for furniture, repairing of houses and other stationeries. There will be a decrease in travel expenses, car hire, eliminate consultant’s budget because there is a special fund for capacity building and technical assistance and no more purchase of attires for public ceremonies. All other purchases will be approved by the Ministry of Infrastructure.

"It has been like a competition to buy nice suits and imishanana (traditional wear) among government institutions instead of managing a broad line budget they have been abusing it,” Musoni stressed.

They were reminded to be mindful that Rwanda is not immune from the current global financial crisis this calls for proper management of the little resources available.

Musoni said that already projections for 2009 and 2010 budgets is not good where it’s anticipated the planned Rwf774 billion is likely to reduce to Rwf700b.

Minister however, said that the system has improved to expose those who try to embezzle or mismanage public resource and another extra mile will be taken to ensure that public resources are well managed.

"We need to re prioritise and focus on development programmes and even if the budget is affected it should affect the recurrent not the development budget.

Internal auditors will be trained to be confident if they are to raise queries especially on carelessness in financial statements.

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