Gov’t lost Rwf 2bn in shady tenders

GASABO - New details have emerged showing how billions of taxpayers’ money was lost through shady tendering orchestrated by government officials, The SundayTimes can reveal.The wide-ranging investigations conducted by Rwanda Public Procurement Authority (RPPA) found out that in twelve government institutions, over Rwf2billion was illegally paid out.

Sunday, August 30, 2009

GASABO - New details have emerged showing how billions of taxpayers’ money was lost through shady tendering orchestrated by government officials, The SundayTimes can reveal.

The wide-ranging investigations conducted by Rwanda Public Procurement Authority (RPPA) found out that in twelve government institutions, over Rwf2billion was illegally paid out.

The Office of the Prosecutor General had recently written to RPPA, requesting the body to probe all government institutions suspected to have faulted the tendering process.

Investigations followed persistent reports that contractors and government officials were conniving to steal state funds.

The SundayTimes has also learnt that the prosecution will soon summon all government leaders involved in the alleged scam to explain why they bent the tendering rules.

According to prosecution, all government leaders are aware that approving additional money on top of the initial contract is illegal.

Prosecution spokesperson Augustin Nkusi on Friday said that approving additional money beyond 20 percent allowed by the government is a new strategy by officials to steal public funds.

"It’s clear that these officials are doing it intentionally. We shall prosecute them soon,” Nkusi said.

The prosecution has however declined to name officials or institutions involved in the alleged scam.

"This information is not yet available for the media. But the most important point is that these government officials were doing it with intention to steal,” Nkusi explained.

According to Nkusi, some institutions jumped from approving 20 percent to 100. He said the punishment awaiting such government officials is severe.

Investigations were targeting tenders awarded between 2007- 2008 respectively.

According RPPA standing tendering rules, government tender committees are not allowed to give additional money without consulting the National tender body.

Investigations will also be conducted to establish whether the contracting firms involved are owned by government officials.

"It’s very strange. We are trying to establish why these government leaders give free money to these people,” Nkusi explained.

Tenders in some government departments have in the past raised many questions with persistent reports from the Auditor General’s office that the process is many times marred by lack of transparency and fair competition.

Ends