Lawmakers question Akagera Park management deal

THE parliamentary Public Accounts Committee (PAC) on Wednesday quizzed officials from the Rwanda Development Board (RDB) over a deal to hand over the management of Akagera National Park to a private company.The management of the country’s biggest park was given to South Africa-based African Parks Network (APN).Subsequently, a private company called Akagera Management Company Ltd (ACM Ltd) was set up to manage activities of the park and government, through RDB, has 49 per cent shares in the company, and APN, 51 per cent.The RDB-Tourism head, Rica Rwigamba, was tasked to explain issues pertaining to the agreement, especially why RDB continues to pay the park’s staff despite the arrangement.The MPs were grilling the officials over misuse of public funds and property as highlighted in the report by the Office of the Auditor General (OAG) for the year ending June 30, 2011.Rwigamba said part of the agreement that delayed was the handover of staff as the company had to get staff who are “seconded” yet there was a “change in the organisation structure” previously agreed upon.“We had a long debate on the matter with the African Parks Network after which we decided that the employees will continue to be paid, directly, by RDB,” she said.But PAC chairperson, Juvenal Nkusi asked: “Why is that happening if you really had those lengthy discussions? Does it mean that the money you pay employees adds directly to your shares in the company?”Rwigamba explained that the staff salaries are part of the operational costs but are evaluated as part of its share contribution. She said the company is now operating and APN has brought in machinery and equipment.The 2010 agreement gave the company, manages six African parks from different countries, a period of 20 years, which can be renewed on mutual understanding.MPs sought to know the composition of the company’s board and management and whether it abides by the country’s laws.Rwigamba explained that APN was brought in because of its expertise in park protection and management, adding that the issue of the board is being considered. MP Jean Baptiste Musemakweli raised concerns over the long duration of the contract [20 years], to which Rwigamba replied that after every five years, there will be an evaluation. RDB acting CEO, Clare Akamanzi, said that APN is bringing in the much needed expertise and experience to revamp the park.She dissolved that a meeting between RDB, APN and the Ministry of Trade and Industry will be held next month, to assess the current agreement and this will provide recommendations for the way forward.“We requested for an audit on the company to know how much money goes in and what possible challenges and, in November, when we meet and look at it we will be in a better position to tell you how things stand,” said Akamanzi.“We feel that there are certain activities they should have done that they haven’t, especially the stocking of the park. We are disappointed it has not happened. But we also have things we haven’t done. In November, we will all assess where we stand and be able to move on. They really have the experience,” Akamanzi added.The Auditor General’s report indicates that the management of the public private partnership (PPP) agreement signed with APN had irregularities in terms of evaluation and approval of the partnership agreement, management of the handover process, and compliance with the partnership agreement.The MPs also raised concerns over un-reconciled payable accounts and findings that indicate that RDB does not regularly reconcile its general ledger account.According to the AG’s report, there was no listing provided to support total funds of Rwf 212, 222, 319 as at June 30, 2011 reported as advances made by tourists from abroad. The report says some of the funds have been carried forward from previous years and have been outstanding for a long period of time.Unsupported expenditure, bank accounts not disclosed in the financial statements, transactions omitted from financial statements, and long outstanding salary advances or loans, MPs noted, must be dealt with as soon as possible.Akamanzi told MPs that: “We have included all these weaknesses in our performance contracts and assure you that we are doing all we can to improve. This will be worked on and significant improvement shown in future AG reports.”According to the AG report, documents relating to evaluation and assessment of the economic, social and financial viability of the PPP agreement were not availed to auditors for review during the audit field work conducted in November 2011.PAC members insisted that such practices must stop.In absence of such documents, coupled with inadequate monitoring of implementation of business plan objectives, the Auditor General said that he could not confirm whether government interests were safeguarded during the signing of the partnership agreement. It is also not possible to ascertain whether the principles of fairness, transparency, and value for money were respected during the approval of this partnership agreement, the report says.On the management of the handover process, the AG’s report indicates that in March, 2010, the company took over management of the park but there was no evidence of proper hand over. There was no inventory of the assets existing at the park before the takeover was carried out and, besides, the partnership agreement does not clarify matters to do with the treatment and ownership of the assets existing before the takeover of ANP. According to the AG, this exposes RDB assets held prior to the takeover to risk of misappropriation.