Agriculture officials grilled over AG report

OFFICIALS from the National Agricultural Export Development Board (NAEB) were yesterday strongly criticised by members of the parliament’s Public Accounts Committee (PAC) as the lawmakers sought to get to the bottom of irregularities highlighted by the Office of the Auditor General (OAG).

Saturday, October 27, 2012
NAEB Director General Alex Kanyankole (R) responds to questions from PAC yesterday. The New Times / John Mbanda.

OFFICIALS from the National Agricultural Export Development Board (NAEB) were yesterday strongly criticised by members of the parliament’s Public Accounts Committee (PAC) as the lawmakers sought to get to the bottom of irregularities highlighted by the Office of the Auditor General (OAG).NAEB officials, most of whom were former leaders – in different capacities – at the former Rwanda Tea Authority (OCIR THE), Rwanda Coffee Authority (Ocir Cafe), and Rwanda Horticulture Development Authority (RHODA), were appearing before MPs over the Auditor General’s report. The same officials are now serving under NAEB which is headed by Alex Kanyankore. The concerns were raised over maintaining proper books of accounts, posting errors, lack of implementing previous Auditor General’s recommendations, fraudulent procurement procedures, among other issues.PAC Chairperson, Juvenal Nkusi, particularly asked former Ocir The officials to explain why certain money owed to the company was written off without approval of the Board of Directors, and why there were unpaid salary loan advances, among other things.While MP Jean Baptiste Musemakweli said: "There are many problems in Ocir The and we want you [Kanyankore] to let the people who were directly involved to clarify on these issues. There are many problems but there are key ones that must be thoroughly explained.” Jonathan Bisengimana, NAEB Director of Finance, who also held the same position at Ocir The, fielded most questions at the onset. He, however, started on a wrong footing, when he claimed that all was well in recent Ocir The operations, prompting Nkusi and Musemakweli to quickly interrupt him. "You are here to answer for the past documented mistakes, mismanagement and other issues as you were at Ocir The. Tell us that and not about the good things you are saying. The PS (Permanent Secretary) in the ministry has just been commended by PAC because he properly managed the ministry’s assets. Tell us why for you, there are recurrent issues of mismanagement,” Musemakweli said.MP Marie Claire Ingabire added: "You cannot tell us that there were no mistakes when according to examples of issues we have here, you did not abide by regulations. You did not, for example, deduct the Caisse Social portion from staff salaries as required”. But Bisengimana said the money was later deducted and presented to Caisee Sociale. PAC also asked him about money that was moved from one account and put on a new account in Fina Bank, which is suspicious. But Bisengimana insisted: "There was really no [shoddy dealing] we first used BK and later we removed it as we sought a bank with the best interest rate. We put the money on a fixed account in Fina Bank as you say. And we used it in daily operations. And when the auditor was auditing, we informed him.” Musemakweli, however, was not happy about the reportedly six months the money overstayed at the account, and thus resulting in Ocir The incurring ‘unnecessary service charges.” MPs have told officials in institutions that have appeared before the committee that the government must not be made to pay for penalties caused by individuals’ negligence and possible embezzlement tactics, especially in cases of miss-postings in the books of accounts.Although the three entities fall under Minagri, they have full financial autonomy and are audited separately.Earlier, the committee had commended the Ministry of Agriculture (Minagri) Permanent Secretary, Ernest Ruzindaza, since his ministry, as an entity, received a clean audit this time.