The Lower House has called for criminal investigations into the mismanagement of public assets worth billions of Rwandan Francs in different public entities.

The lawmakers say the investigations should lead to prosecutions and asked the Ministry of Justice to direct the National Public Prosecution Authority to subsequently take offenders to court.

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

One of the notable cases involves Water and Sanitation Corporation (WASAC), which paid a supplier twice.

According to the AG’s report, over Rwf103 million was paid twice to the same supplier, Africa General Trading, who had provided WASAC with water treatment chemicals.

The money was paid through separate WASAC accounts, one in Bank of Kigali and the other in Guarantee Trust Bank.  

WASAC said it later recovered part of 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.

MPs also want a probe into circumstances under which Rwanda Utilities Regulatory Authority (RURA) paid Rwf56 million (lump sum) to six employees contrary to the law.

At Ruhengeri Referral Hospital, the lawmakers want a probe into circumstances under which insurance premiums amounting to Rwf203 million was paid for motor vehicles and motorcycles, over three times more than the actual value (Rwf67.1 million).

The Auditor General’s report described this as grossly over-insuring the assets.

Another case involves the disappearance of 124 sacks of cement which was meant for the construction of classrooms in Nyamasheke District, and 333 sacks designed for the construction of classrooms in Ngororero District in Western Province.

Irregularities in public procurement  

The Chamber of Deputies also asked the National Public Prosecution Authority to sue those responsible for the malpractices in public tenders. 

The anomalies include a tender for rent of offices for the Supreme Court, at over Rwf117 million a month, which was awarded by the Rwanda Housing Authority. It was established that the rent agreement was reached without the involvement of the institution’s tender committee and its legal advisor.

At the National Rehabilitation Service (NRS), a tender for foodstuff items was awarded to the highest bidder, who had quoted at least Rwf161 million above the other bidders.

The legislators also want action in line with a tender for dairy equipment and testing tools, worth Rwf749 million, which was offered by Rwanda Agriculture Board (RAB) and it was later realised that the tender document was changed after its publication, on May 9, 2019.

It was established that the amendment was not approved by the internal tender committee.

The Auditor General’s report indicated that RAB later signed a framework contract with a contractor identified as SALTEL for the supply of dairy equipment and testing tools without seeking legal opinion from the Minister for Justice, which is contrary to the provisions of public procurement laws.

The MPs are also pushing for action in regard to another tender at RAB, in which one contractor won tenders for carrying out technical studies and conducting supervisory work for the same project.

The tenders, worth over Rwf2.1 billion, were related to repairing a valley dam for irrigation in Eastern Province.

Both the AG and PAC reports indicate that this is contrary to the provisions of the law governing public procurement.

According to the law, it is prohibited for a consultant hired to provide consulting services for the preparation or implementation of a tender, or a company connected to the consultant, to bid for providing goods, works or consulting services related to the same tender.

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

The same ministry also offered a tender worth more than Rwf40 billion for the supply of petroleum products, but received a performance guarantee for less than the 10 per cent of the value – and the legislators want this issue acted upon.

At the Rwanda Education Board, a public tender for the purchase of textbooks saw the institution pay up to Rwf195 million, well above the initial budget of Rwf108 million.

The House also heard that REB also awarded three tenders worth Rwf4.2 billion to bidders who did not requirements as laid out in the tender document.

PM tasked to coordinate action

PAC chairperson Valens Muhakwa said there were irregularities in many public tenders, pointing out that an extensive inquiry was needed to establish the causes and hold those responsible to account.

Insisting action must be taken against those who flouted the rules, the MPs resolved that the Prime Minister should follow up on the resolutions made and submit, within eight months, a detailed report to the Chamber of Deputies on their implementation.

"Eight months is an adequate period for the implementation of those resolutions,” Muhakwa said.

The Lower Chamber of Parliament also asked the Prime Minister to lead the reform, within six months, of the organisational structure and functioning of WASAC. The idea, the said, is to address the persisting issues in the agency’s governance and management functions, as highlighted by the successive Auditor General’s reports since 2014-2015.