Presenting the report to both chambers of the Parliament today, Auditor General, Obadiah Biraro said that 50% of the 165 public entities and projects considered in the financial and performance audits received unqualified audit opinion and urged lawmakers on holding accountable everyone misusing the public funds.
Among the 165, there were 139 budget agencies and projects representing 86.4% of the reported Government Expenditure of Rwf2,200,199,963,530 for the year ended June 30, 2017, compared to 85% for the year ended June 30, 2016.
Overall, the level of wasteful expenditure resulting from diversion of public resources and unsupported transactions has reduced from Rwf17,634,265,933 in the previous report which had considered 139 public entities and projects with 85% of the reported government expenditure in the year ended June 30, 2016.
Biraro said, however, that the cases of unsupported, wasteful and unauthorized expenditure and fraudulent transactions in different public entities are still high and require urgent management attention.
The report indicates that 109 contracts worth Rwf206,817,279,066 were delayed while 27 contracts worth Rwf45,866,655,835 were abandoned. Idle assets worth Rwf22,320,539,989 in 147 cases were also revealed.
Citing an example of halted Kalisimbi project which aimed at enhancing electronic communications and broadcasting services, Biraro said the idle drilling materials at Kalisimbi site including water tanks and pipes should be sold out to recover some funds out of the Rwf2.7 billion that was already invested in the project.
He said 13 institutions have recurrently appeared in the reports as the poorest managers of the public funds with Water and Sanitation Authority (WASAC) leading the row.
{{WASAC again!}}
With only 59% of water generation billed in 2016/2017, WASAC registered a whopping Rwf20 billion loss and kept equipment stock worth Rwf1.9 billion while the expenditure was also poorly accounted for, according to Auditor General Biraro.
“WASAC has poor financial statements and we failed to give our opinion. They are poorly performing. The management of WASAC should change. This institution should work as a government business enterprise as it is mandated,” he said.
{{REG}}
Citing Gishoma Peat Plant worth Rwf40.5 billion but produced power for only four months and stopped, Biraro also slammed Rwanda Energy Group for having five out of 33 power plants which lie idle, only six plants produce above 50% while other 22 produce below 50% of the initially planned capacity.
{{RRA}}
The report pins Rwanda Revenue Authority (RRA) on failure to recover Rwf3.5 billion lost in VAT fraud with a minimal follow up standing at 13% only despite the use of Electronic Billing Machines (EBM), the technology that Biraro says hugely cost the country.
RRA was also slammed for lack of bank reconciliation with Rwf84.5 billion found on different six suspense accounts.
Rwanda Agricultural Board wrecked Rwf90 million in losses resulting from 225 tonnes of seeds of maize which perished in stores while farmers are always decrying insufficient seeds.
Rwanda Bio-Medical Centre was touted for improvements in the public funds management but also slammed for delaying delivery of over Rwf3 billion to hospitals for 240 days, causing poor health services.
Other institutions found with poor accountability include Rwanda Social Security Fund (RSSB), Rwanda Education Board (REB), Rwanda Transport Development Authority (RTDA), University of Rwanda and Workforce Development Authority (WDA), among others.
{{Lawmakers on tougher penalties}}
In their reaction on the report that was approved by a Bicameral House, lawmakers touted the Office of the Auditor General for the insightful report and vowed to push for tougher penalties against those who embezzle the public funds.
MP Athanasie Nyiragwaneza said “There is need for tougher measures to punish those involved in these cases of public funds mismanagement and to curb the future losses.
Théoneste Begumisa Safari urged the justice sector to be more serious with crimes related to public funds mismanagement, saying that it is sad to see embezzlement suspects unclearly released or even given so trivial penalties when they are convicted.
Théobald Mporanyi suggested a harsher scrutiny of the proposals from public entities which appear in the Parliament every year to seek budget, saying that they should first be asked to account for the previous budget before receiving another one.
“This is the 10th report I have heard of since I got in Parliament. Rwanda has done a lot in the last 24 years but what is really failing us in public funds management? The Parliament should adopt measures whereby we deny budget to an institution until it justifies how it spent the previous budget,” he said.
Auditor General Biraro reminded legislators to do their best for the recovery of the public funds fraudulently spent because “If there is no cost of failure, there is no fear of failure.”























