Over Rwf 102 out of 1677 billion of the national budget for the year 2013/2014 was misappropriated according to a survey by Transparency International Rwanda (TIR).
TIR review of the Auditor General report for the 2013/2014 national budget indicates that districts and Kigali city are all culprits of misappropriating more than Rwf 102 billion public fund.
The analytical report was presented yesterday with a pointing in schools, hospitals, health centers and sectors as being responsible for 94.4% of misappropriated funds from the national budget reserved for districts.
Mupiganyi Appolinaire, the executive secretary of TIR attributes the loss to bad performance.
“There is no public funds audit in institutions under supervision of districts yet they spend a lot of cash from the national budget. Indeed such institutions have a small number of accountants where one is responsible for many accounts and transactions,” she said.
Poor judgments, bad financial management, dishonest among employees, flawed public procurement and payment of salaries to ghost employees are also among the malpractices cited in the review.
The Ministry of Local Government doesn’t refute the misappropriation but claims that there is a reduction of 5% of national budget mismanagement compared to 2012/2013 budget.
Vincent Munyeshyaka, the permanent secretary in the Ministry of Local Government said that institutions that have been identified as mismanaging public funds are getting regular audits.
“We had no effective follow-up on the transactions of national budget usage. In collaboration with the Ministry of Finance and economic planning we have started making regular reports on incomes and expenditures,” he said.
Munyeshyaka highlights that the policy of regular audits will be introduced in schools and health centers not later than February 2016.
The TIR review established that local administrations have improved accountability since misappropriated funds reduced from Rwf 107 billion in 2013 to Rwf 102 billion in 2014.
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