The Parliamentary Public Accounts Committee (PAC) believes there is efficient financial management at Rwanda Social Security Board (RSSB) following the change in its management team and Board of Directors.

The development came to light during PAC’s first hearing of findings related to financial misappropriations as highlighted in the 2021 Auditor General’s report.

RSSB was the first of the 85 institutions that have been summoned to explain some discrepancies reported by the Auditor General.

"We recognise efforts being applied by the new management to ensure financial transparency, but we hope much effort will be put into how you report on investments you’ve made,” said PAC Chair, Valens Muhakwa.

In September last year, the Cabinet appointed a nine-member Board of Directors to the pension body. The board is led by Christopher John Wales, who was previously involved in designing economic and fiscal policies, fiscal institutions and revenue administration among others, in different countries.

Later on, in February this year, the Prime Minister gazetted the amended law establishing RSSB in a move that saw the board gaining greater autonomy from the state in terms of governance.

Under the law, the entity has more independence from the government, with the Board of Directors taking charge of making decisions regarding its daily functions.

Previously, RSSB’s activities were overseen by the Ministry of Finance and Economic Planning, in close collaboration with the Ministry of Public Service and Labour and subject to public sector procedures by Parliament and Office of Auditor-General.

This was followed by the appointment of Regis Rugemanshuro as RSSB CEO and his deputy Louise Kanyonga.

Muhakwa also recognised that offering RSSB autonomy has impacted on how the board performs its duties and take financial decisions since it is (RSSB) currently operating at no loss unlike in the past.

Making the pension body autonomous and having a new leadership that turned it around, according to PAC, has significantly plugged the loopholes that led to losses in the previous years.

PAC applauded the changes at RSSB and encouraged the team to ensure effective financial reporting.

The vice chairperson of RSSB Board of directors, Marcel Mukeshimana, also told PAC that, "to ensure an effective transition to the new way of working, the board of directors has been split into six committees with each committee having specific tasks to ensure proper financial management.”

On projects that the new management inherited which were reported to have had financial issues, Muhakwa advised RSSB team, which was led by the board’s CEO Rugemanshuro to draw a roadmap on how they intend to fix them and the time frame, then report back with a written map.

Among the issues that the new management inherited include phase two of the Batsinda housing project, which was supposed to be for affordable housing but was later revised to middle-cost housing. The project was supposed to have started in 2016 but so far has gone only to 35 per cent.

According to Rugemanshuro, "the affordable housing project was relocated to Rusororo and Gasogi where studies have been conducted, while relocating it from Batsinda came as advice from the government considering the cost the project stood at.”

Auditor General’s report had indicated that the initial cost of the project was Rwf15 billion and added that due to a change to precast concrete technology, a new contract was entered in January 2018 at a tune of Rwf 37 billion and the completion dates of completion were revised.

The revision of the project, according to Rugemanshuro, implies that the middle cost apartments in Batsinda will be acquired at a cost of Rwf 85 million to 90 million but it didn’t affect the existing plan of affordable houses as plans to have them in bigger numbers still exist and studies have been completed.

For the Batsinda project, Rugemanshuro told MPs that efforts are in place to fast-track it. "So far, it is at 35 per cent and we have spent on it Rwf 13 billion which is equivalent to the work done.”

Lawmakers appeared satisfied with how RSSB is running its businesses and encouraged them to improve on reporting.