Author: John Mbaraga

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.

Under the project, BRD will provide loans to Bank of Kigali, I&M Bank, Access Bank and KCB; and those banks will also provide loans to people and businesses who will need to invest in renewable energy.

Last year, the Government of Rwanda through BRD, launched a $49 million (over Rwf41 billion) project which will enable 445,000 households get access to electricity through renewable energies by 2023.

The project will facilitate small and medium businesses and 1.8 million people to get access to electricity specifically those who do not have access to national grid.

BRD Chief Executive Officer, Eric Rutabana said that the signed agreement is a way to approach people with projects that need loans to buy materials which they will use in renewable energies.

“Projects to fetch electricity from renewable energies like solar and small hydropower plants among others will get funding, for individuals who will need to connect their homes or buy materials will be able to acquire loans,” he said.

He said that through the six-year project, $46 million will go in electricity related activities, whereas other $3 million will go to support partners like Saving and Credit Cooperatives (SACCOs), banks and micro-financial institutions which will provide loans to people and investors.

According to BRD, private sector role is paramount towards achieving the government’s target to have 100% access to electricity by 2024.

Speaking at the signing ceremony, the Bank of Kigali’s Chief Commercial Officer, Vincent Gatete said that the partnership comes as response to the interest rates which are high and discourage people working in energy sector.

The Managing Director of KCB Bank George Odhiambo said “As a business we are ready to see this project successful and we consider this as a catalyst to offset other development projects in Rwanda,”

Under the seven-year government programme, the government has targeted that in 2024 all households will be connected to electricity, 52% of them will be connected to National Grid whereas 48% will be connected to other sources of energy.

Mrs. Kagame was speaking Tuesday in Nyamagabe District of Southern Province while closing the ceremony of this year’s Promotion of Girls Education Campaign.

Under the ceremony, 82 best performing females in last year’s national examinations from Primary school, Ordinary and Advanced secondary school, and Technical Vocational and Education Training were awarded.

First Lady said that she is pleased to see girls joining some courses, but reminded them that there is still a gender gap in sciences as it was echoed in the Next Einstein Forum that is taking place in Kigali.

Figures from the Ministry of Education indicate that between 2011 and 2015, the number of girls studying sciences increased from 48% to 55%.

“We are not yet where we want to be. Let’s aim for at least one girl, in the first Division marks in every sector by next year,” she requested.

“I would like to remind you that being a best performing girl is not only about the knowledge you have, but it also means having a mindset that can bring transformation, and the kind of solutions your parents, Rwanda and Africa expect from you,” she told students.

The First Lady also acknowledged teachers for encouragement and passion in creating an environment that facilitates training of young and courageous women.

This year, 172 best performers in last year’s Primary Leaving Examinations, Ordinary and Advanced levels have been awarded. Over 4,600 students have been awarded since the programme launched 13 years ago.

Visiting the stocks at the factory located in Gikondo Industrial Park today, IGIHE reporter learnt that to be auctioned are five types of tobacco including Premier Filter (5,553 cartons), Filter Star (1,033 cartons), Filter Star King (328 cartons), Premier Super Menthol (191 cartons) and Filter Star Soft (90 cartons).

Each carton contains 5,000 pieces of tobacco, making about 36 million pieces in total. IGIHE has also learnt that tens of interested buyers have been visiting the stocks since last week and that the auction will undoubtedly take place on Wednesday.

Information on the cartons indicate that the tobacco was manufactured between May and July 2017 but the stocks were impounded towards end of last year by RRA claiming tax arrears amounting to Rwf6 billion in the period spanning from 2012 to 2017 as Premier Tobacco Company allegedly evaded taxes.

Under the order of RRA, Bailiff Védaste Habimana announced the auction a fortnight ago without specifying the quantity of tobacco stocks and amount of tax arrears that are intended to be recovered.

Trying to know if the auction is expected to leave all arrears cleared, IGIHE asked Habimana who said he will give any further details tomorrow after the auction, confirming that it is taking place at 10:00am at the factory.

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.

Court ruled in favour of RRA

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 failure of operations.

He said raw material used to make cigarettes was decomposing in the warehouse because of lack of access and requested the court to order RRA to withdraw all seizures. 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 due to 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. On the spot, 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.

The Rwigaras got into the spotlight in 2015 when industrialist Assinapol Rwigara was killed in a controversial accident which his family claimed was politically motivated but the government denied the allegations.

The family was again outspoken last year when Diane Rwigara, the family’s eldest daughter, launched an unsuccessful bid to run for presidency in the August polls. She was later disqualified by the electoral commission and charged with inciting insurrection and forging signatures required of presidential candidates.

Diane is currently in detention together with her mother Adeline Rwigara who is charged of inciting insurrection and promoting sectarianism.

The fifth freedom flight was signed on Monday in Kigali between the State Minister in charge of Transport in the Ministry of Infrastructure, Jean de Dieu Uwihanganye and Nigeria’s State Minister for Aviation, Sen. Hadi Abubakar Sirika.

Uwihanganye said that the agreement has budding impacts to both countries.

“The agreement allows us to operate to all Nigeria’s airports and carry passengers from there to any other airport in African countries,” he said.

“It will also facilitate both countries’ private sectors collaborate and do business together,” he added.

Nigeria’s Abubakar Sirika emphasized that the agreement is in line with easing integration through the Single African Air Transport Market as part of the Africa’s 2063 Agenda.

He said that both countries will benefit from the agreement both in cultural industries and business.

“Transportation, especially air transport will become easy and enhanced; it will connect people, culture and the market. Signing such agreement will allow Rwandans interconnect with Nigerians and do business together,” he explained.

RwandAir Chief Executive Officer, Col. Chance Ndagano said that the agreement will help the career attain their mission of facilitating Rwandans, Africans and beyond having easy movements.

“When we look at the economy, easing movement will promote tourism and businesses between both countries and Africa in general,” he said.

Currently, RwandAir has 25 destinations. In May, it will enter Abuja in Nigeria and start Accra road in Ghana.

In 2010, both countries had signed the agreement which allowed RwandAir to operate from Lagos.