Rwanda | Public Accounts Committee releases first report, cites massive irregularities
The newly established financial watchdog of Parliament has released its first review of state finances – reporting that billions of francs was lost in 2009-10 as a result of various weaknesses in government operations.
The Public Accounts Committee (PAC) published the findings February 14 before the Chamber of Deputies. At a heated session of the lower House, PAC chairman Juvenal Nkusi, cited more than 20 irregularities discovered in government spending.
Some state institutions are said to be spending tax payers’ money with no official justification. In some places, the money was released, but for different activities than planned. Some places were found to have deliberately flouted tendering rules.
Among the consequences of these shortfalls, the state lost some Rwf 9.8 billion as a result of irregularities in awarding tenders.
Cases of embezzlement and causing financial loss were also uncovered and some culprits had been dragged to court, and in many cases, the state won. However, PAC found out that the hundreds of millions which were supposed to have been recovered from the individuals and institutions incriminated, were actually not.
The justice minister, Tharcisse Karugarama, reportedly told the Committee that it was almost impossible to recover the money because there are no established mechanisms. In some cases when the money to be repaid had been decided, the court bailiffs took the money for themselves instead of handing it to the state.
PAC was established in April last year as a requirement of East African Community bloc. Uganda, Kenya and Tanzania already have them. The committee is supposed to ensure that every cent spent by the executive goes for the right cause.
In Uganda for example, the PAC there has led to the resignation of top government officials including ministers. The body has become the symbol of Parliament’s fight against graft.
Back in Rwanda, the stormy session that received the first PAC report welcomed the move, but there was also severe criticism of the findings. Some lawmakers said the report was no different from the many reports that have been published in the past.
The critical voices said the team made general statements that have been made before by the previous finance committee of parliament and the Auditor General. They said the team was supposed to name names such that those affected are immediately recommended for prosecution.
Some lawmakers said since the team had just started, there was room for improvement.
Among about 50 recommendations directed at different arms of government, PAC said it would stop at nothing to ensure taxpayers’ money is not wasted.
It was also recommended that the finances of the Rwanda Social Security Board (RSSB) be audited to determine if the hundreds of real estate assets and other business ventures really met the value for money. Some venture in western province and Kigali were cited.
PAC also demanded that all state institutions stop immediately the awarding of loans on salaries to employees because hundreds of millions had been lost during the year in review due to the scheme. Some institutions did not have systems to recover the loans. In others, the loans have been given without documentation.
The report, ranging hundreds of pages, would be debated in the House the whole of February 15 for adoption. Should the chamber admit the findings, as it seemed likely, trouble could be coming the way of several government officials.
