The Parliament’s Public Accounts Committee (PAC) has called for an investigation into circumstances under which Ruhengeri Referral Hospital paid insurance premiums that are over three times more than the value of its insured motor vehicles.

The call was made on Wednesday, September 22, as hospital officials were virtually appearing before PAC to respond to spending irregularities.

The irregularities were exposed by the compliance audit on expenditure for the financial year ended June 30, 2019, which the Auditor General conducted on the Musanze-based hospital in June 2020.

According to the audit report,  the hospital’s motor vehicles and motorcycles with a net book value of Rwf67.1 million as at June 30, 2019 were grossly over-insured at Rwf203 million.

On the contrary, it noted, its buildings and medical equipment with a combined net book value of Rwf704 million were not insured.

Philbert Muhire, the Director General of Ruhengeri Referral Hospital, told PAC that it seems the insurance premiums were overestimated compared to the value of the motor vehicles, adding that they later aligned the insurance cost with vehicle worth.

"The insurance premiums had already been paid. We are going to make a deep analysis of the insurance premiums paid on each vehicle and ensure that any person who might be responsible for that [the malpractice] be pursued,” he said.

MP Germaine Mukabalisa, said that even if all the hospital assets had been insured, the premiums would be less than Rwf203 million.

She tasked the hospital management to provide the reason behind the abnormally high insurance premiums for the assets in question.

PAC Chairperson, Valens Muhakwa, said that it is not understandable how assets worth Rwf67 million can be insured with premiums 300 per cent higher than their value, suggesting that the issue should be investigated in order to expose the intent.

"We request responsible organs to carry out through investigations so that those who are responsible for it be identified,” he said, pointing out that this overestimation might imply embezzlement.

MP Jean Damascene Murara said that the money should be recovered and be put in the national treasury.

He wondered why the hospital insured motor vehicles whose monetary value is far less than that of its buildings and medical equipment but ignored the latter.

For buildings and medical insurance, he said, they have great value and should be insured.

"We are working with the Ministry of Health and the Rwanda Housing Authority so that they help us in this area that involves large insurance so that the hospital buildings and equipment be insured,” he said.