The auction that was held at the factory’s premises located in Gikondo industrial area in Kigali was postponed since last Monday as the leadership of the factory had rejected the value that was given to their property in the valuation commissioned by Rwanda Revenue Authority (RRA).
Eight clients contested in the auction of the machines used in tobacco processing but none said a thing after Bailiff Védaste Habimana announced the base price that was offered by MM & RGD Company Ltd which was represented by Olivier Udahemuka.
The auction intends to recover the balance on tax arrears amounting to Rwf6 billion that PTC evaded in the period spanning from 2012 to 2017, according to RRA
Anne Rwigara who represents her family’s business rejected the entire auction and the price which she said was too smaller compared to the real value of the auctioned machines and said they will keep challenging the auction of their properties in the court of law.
“We reject that price as PTC and it is in our legal rights. The auction was expected last Monday and you said you allowed us to do our own valuation but you never allowed us and our valuers in the factory to do it. This auction illegal,” she said, adding that the machines have at least five times that price offered.
Habimana who conducted the auction said that they informed PTC leadership that they were allowed to do their own valuation for a one-week period but they never did it.
“All legal procedures have been respected in this auction. PTC leader is, therefore, not allowed to stop this auction. For the property’s owner to exercise the rights of rejecting the price, that price must be below 75% of the base price but now, the base price has become the final price paid for the property,” he said.
Habimana added that it seemed that, by rejecting the valuation which was set by the professional valuers, PTC just wanted to delay the auction. We have
The auction of the factory’s machinery follows yet another of March 28 in which the factory’s tobacco amounting to 7,195 cartons were auctioned at Rwf512 million to Murado Business Ltd.
At the auction, however, the Rwigara family was not contented with the Rwf512 million either, saying the tobacco had a value of around Rwf1 billion but Bailiff Habimana who presided over the auction said all was in line with the laws.
Anne Rwigara said the auction was conducted illegally and had earlier tried to challenge the seizing of the tobacco stocks and other properties in Nyarugenge Commercial Court which ruled in favour of RRA.
With both auctions, RRA has now recovered Rwf2.3 billion out of Rwf6 billion that it claims from PTC as tax arrears.
Speaking to IGIHE immediately after the first auction in March, RRA Commissioner General, Richard Tusabe had said that RRA would auction any of the Rwigaras’ properties until all the tax arrears are recovered.
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