MPs summon Kanimba to explain expropriation of relocated investors

Trade and Industry minister François Kanimba on Wednesday appeared before the parliamentary Committee on Economy and Trade to respond to expropriation issues of industrialists who were supposed to be relocated from Gikondo industrial zone. The minister was summoned after Nurdin Rahemtullah Bhanji, a property owner at the Gikondo industrial zone disputed the expropriation terms and petitioned Parliament. At least 100 industries in the wetlands of the industrial zone were to be moved to new industrial zones for environmental reasons, but the exercise has so far seen a handful of light industries being relocated to the new Kigali Special Economic Zone (KSEZ). Bhanji leased his property to Aquasan which produces plastic water tanks. Aquasan with the support of government relocated to KSEZ. The arrangement left Bhanji with a bitter taste as his preference was to be involved in the relocation exercise so that Aquasan continues to rent out his property. The issue is not unique to Banji and his tenant Aquasan, posing challenge to the exercise as explained by Kanimba. “During the process of expropriation, we encountered two main challenges; first was financial constraints and second was who to expropriate simply because tenants and landlords had failed to reach a common agreement,” the minister said. “Our task was to shift industries and expropriate premises. We had earlier advised tenants and landlords to decide who should be expropriated but many failed to reach a mutual agreement, which pushed us to issue directives on who should be expropriated.” In the case of Banji, Kanimba explained that he wanted government to secure property for him in the Special Economic Zone so that the lease agreement with Aquasan continues. The Minister said this option was not appropriate. “Having seen that we would relocate the factory (Aquasan), he decided to create a ghost company on his premises and he pushed for its expropriation and relocation, which was not possible,” Kanimba said. “By October, last year, we had paid him Rwf234 million for his premises and we told him that he could not have his company relocated because it was not part of the plan.” The legislators seemed convinced by the Minister’s reasoning, but asked him to provide supporting documents, including payments made and guidelines for the entire relocation exercise. The MPs also questioned the slow pace at which the exercise is taking place and urged government to follow the recently revised and adopted laws on expropriation and the law governing lease operations. “Financial capacity cannot be an excuse for deeds from which citizens became victims of failed expropriation. People should not be stuck because some programmes hit a snag, we need to avoid pile-up of expropriation cases,” said MP Henriette Sebera. According to the law, those to be expropriated are not allowed to add value to properties after government has concluded the assets valuation process, although it provides 120 days notification before the expropriation. The exercise was earlier quoted at around Rwf35 billion, an amount that financially burdened the government, which eventually opted for gradual relocation based on available resources. The Ministry of Trade needs Rwf17 billion to smoothly carry on with the expropriation. Minister Kanimba said the plan is to conclude the exercise within the next two financial years. editorial@newtimes.co.rw

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MPs summon Kanimba to explain expropriation of relocated investors