New research shows 70% parastatals don't recover funds won in litigations

A study dubbed “Self-Assessment” says that 72.7 per cent of public institutions have not yet recovered money from cases won by government in the last two fiscal years. According to David Karuhanga, who coordinated the assessment carried out since September, 58 institutions that participated in the research won 232 cases out 355, equivalent to 65.3 per cent, in the last two years. However, Karuhanga said the government only recovered funds from nine cases. On the contrary, 41 per cent of institutions that lost cases by government paid. “The speed to recover money from won cases must correspond the speed to pay where we lost cases,” said Johnston Busingye, Minister for Justice. Rusizi District and Rwanda Natural Resources Authority had more than 50 lawsuits lodged against them while 15 other institutions had between10 and 49 cases, and 41 had between 0 and 9 cases. The Auditor General’s Office reported last year that Rwf126 billion in public funds were at risk due to poor contracting and management. Yet, only Rwf115 million, equivalent to 8 per cent of the national budget of that year, had been recovered. The survey shows that the government loses cases because many budget managers do not seek legal opinion and lack documentation and information to rely on when litigation ensues. It also indicates that issues that could be solved amicably go to court when it is not necessary, while some officials ignore summons. The survey targeted 107 institutions but only 58 participated. “We recommend that the Ombudsman, Auditor General and the CID do their assessment on those institutions that did not participate as they might be hiding something, and if there are other challenges they met, we can look for solutions”, he said. He said 99 per cent of public funds get lost through contracts management. The survey also recommended that leaders and budget managers ensure accountability and suggests that the absence of in house opinions should raise the red flag for the Ombudsman and CID to investigate. Agnes Mukagashugi, the deputy prosecutor general said there should be new ways of calculating interest rate on public funds that take long without being paid and how to attach property before losers could flee or hide them. The minister said new instructions will include such proposals before being submitted to the cabinet for appeal. Nyarugenge is said to have failed to recover Rwf24 million since 2011 and Nyamasheke Rwf28 million since 2013. If the interests rate were considered the amount would double, officials said. editorial@newtimes.co.rw

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New research shows 70% parastatals don't recover funds won in litigations