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.
Leave a Reply