Govt seeks lasting solution to financial mismanagement

Government is considering all possible measures to ensure proper accountability of public finances, Finance minister Claver Gatete said yesterday. Gatete was appearing before the parliamentary Public Accounts Committee (PAC) to explain financial irregularities in public entities, as revealed by the 2012/13 Auditor General’s report. His appearance marked the last public hearings for 2012/2013 AG’s report which commenced on October 7. “Everyone should be audited and held accountable for every penny they use,” Gatete said. He also said more training of public accountants and budget managers will help curb financial mismanagement. MP Juvénal Nkusi, PAC chairperson, said improper accountability tendencies had continued to hurt the Treasury. “We must find permanent solutions to misuse of taxpayers’ money,” Nkusi said. PAC chairman Juvénal Nkusi (L) chats with the Auditor General Obadiah Biraro at Parliament Yesterday. (John Mbanda) MP Théoneste Karenzi cited a case in Nyamasheke District where a truck was hired to transport district “goods” at a cost of Rwf500,000 per hour which he said was inflated. “The most expensive quotations for big trucks would not exceed Rwf200,000 per day,” Karenzi said. The AG’s report indicates that there were declining financial management issues noted in government business enterprises, boards and universities. The majority of audit issues were evident in some districts. “Though the trends of accountability are positive compared to previous reports, there are still issues that need to be addressed,” MP Karenzi added. By the audit time, 68 per cent of public entities had fundamental accounting, corporate governance, financial management, contract management and value for money issues to address. In the accountability sector, the main concerns relate to persistent weaknesses in preparation of financial statements and multiple errors noted during the audits. There was also a high level of wasteful, unauthorised and irregular expenditure totaling to Rwf3.2 billion. “Over Rwf1 billion has been spent fraudulently since 2011,” AG’s report reads in part. There are cases reported in management of government assets that resulted in stolen assets worth Rwf600 million and idle assets worth Rwf1 billion. Minister Gatete (R), Commissioner General RRA, Richard Tusabe and RPPAs Augustus Seminega (behind) leave Parliament after appearing before PAC yesterday. (John Mbanda) The 2012/13 AG’s report indicates that Rwf175.8 billion was generated by non budget agencies and not accounted for in the financial statements of districts. The report also shows that over Rwf23 billion was lost in poor contract management procedures, while nine contracts worth Rwf900 million were abandoned by contractors. However, Gatete said irrespective of persistent errors, there is a growing sense of accountability in public entities. “We are continuing to train and professionalise public accounts,” he said. Easy-to-use accounting software-software set to be rolled out to all districts, among other accounting measures, is expected to ensure proper accountability, he said. The Auditor General, Obadiah Biraro, also told The New Times that there was notable improvement in accountability. AG’s report indicated that 32 per cent of all audited institutions obtained unqualified (clean) audit opinion, compared to 28 per cent for the year ending in June 2012. “This shows that public entities are making remarkable efforts to ensure proper accountability for public funds,” AG said. Biraro said compliance rates to proper accountability in public institutions had risen to 80 per cent, thanks to the desire of budget managers to obtain a clean audit opinion. “The desire for clean audit is evident. We see district internal auditors and accountants coming to seek advice from our offices,” Biraro said. The reports, hearings and, where applicable, prosecutions are part of the government’s efforts to ensure proper use of public resources.

News

Govt seeks lasting solution to financial mismanagement