The auction took place at Gikondo at the ‘Premier Tobacco Company Ltd’ premises on Wednesday.
The court bailiff Védaste Habimana opened the auction asking price of Rwf433,727,966 and the tobacco was finally bought by Murado Business LTD.
At the auction was Anne Rwigara, late Assinapol Rwigara’s daughter who is also in charge of the factory’s operations and his brothers.
The family was not contented with the value that was given to their properties. They said that the tobacco had a value of around Rwf1 billion.
Anne Rwigara requested the court bailiff to suspend the auction as stated by law when property owner is not satisfied with the value at the first day.
Anne said that they still have the case filed at Nyarugenge Commercial Court, requiring for suspension of the auction.
“It is not necessary to sign a cheque. A case has been filed in court to stop this auction and as you know today at 2:00pm there is a hearing. As you also know that property owners are allowed to reject the value when they are not contented. We as Rwigara family reject this offer,” she said.
The court bailiff told the family that the auction was conducted legally and if they are not satisfied they should go to court.
“I’m the one heading the auction, we are not in the court, if you have any concern about the auction go to court. I have nothing else to argue with you,” he said.
The stocks of the tobacco were seized last year by Rwanda Revenue Authority (RRA) to recover tax Rwf6 billion arrears that they claim the factory owe the government. Auctioned were different types of tobacco including Premier Filter (5553 cartons); Filter Star (1033 cartons); Filter Star King (328 cartons); Premier Super Menthol (191cartons) and Filter Star Soft (90 cartons). Each carton contains 5000 pieces of tobacco making a total of over 35 million pieces.
Origin of the auction
RRA has repeatedly said that it approached Rwigaras asking them to pay arrears but the family turned a deaf ear.
Richard Tusabe, RRA Commissioner General, told the press last month that the auction was delayed by the fact that The Rwigaras also owe huge debts to different people and banks, among other reasons.
Previously, the Rwigara family had filed a case in the Commercial Court of Nyarugenge in January 2018, accusing RRA of illegally seizing its bank accounts and assets, claiming that RRA’s acts had prevented their tobacco factory from recovery but the court ruled in favour of RRA.
The family’s lawyer, Janvier Rwagatare, told the court that the Premier Tobacco Company’s computers, books of accounts and warehouses had illegally been seized by RRA, leading to the factory’s stalling in operations.
He said raw materials used to make cigarettes were decomposing in the warehouse because of lack of access and requested the court to order RRA to withdraw all seizure orders. He added that the factory had lost all clients after being out of business for seven months.
However, RRA lawyers Clement Gatera and Bajeni Byiringiro argued that the assets including books of accounts, computers and finished tobacco products had been seized legally following the company’s failure to clear arrears.
The judgment made on 5th February ruled that RRA had seized the factory legally and dismissed the case. The family’s business representative Anne Rwigara said the decision would be appealed but IGIHE has not learnt of the appeal so far while the 30-day maximum period for appeal has expired.
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