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Audit unearths irregularities in use of state funds

A report from the Auditor General's office in Rwanda says that several government ministries and parastals were involved in irregular tendering procedures in 2002, causing the country to lose millions of dollars and frustrating the government's efforts to reduce high levels of poverty nationwide.

"The findings indicate that some public officials continue to cause the government losses by dodging the National Tender Board in order to siphon government funds for their own interests," the report for 2002, which was released last week, said.

The audit said some government ministries and parastatals had violated tendering guidelines from the National Tender Board (NTB), resulting in the irregular award of tenders worth US $5.8 million. The audit said the practise had also resulted in the government acquiring poor quality goods and services at exorbitant prices.

The government of Rwandan set up the tender board and the Auditor General's office in a bid to curb corruption and mobilise resources to reduce the high poverty levels.

The board is mandated to handle all purchases exceeding three million Rwandan francs ($5,769) made by government institutions, while internal tender committees at the ministerial level handle those for lesser amounts.

Observers said that with the revelation of irregularities in the use of government funds, efforts to eradicate poverty could prove difficult. At least half of Rwanda’s 8.1 million people live on less than a dollar per day.

Although corruption in Rwanda is not considered rampant when compared with other countries in the region, cases of continued embezzlement of state funds are significant. According to the report, the Ministry of Education, the Civil Aviation Authority and the judicial sector failed to account for the loss of $3.1 million.

It said that out of the 44 embezzlement-related cases tabled before the state prosecutor's office, only 5 percent of the cases had been finalised while 75 percent were with the prosecutor, pending court proceedings.

The auditor general reported that investigations conducted revealed that up to $7 million and €6,240 ($7,612) was unaccounted for in various government institutions and projects.

"There’s either conspiracy or deliberate misplacement or inexistence of transaction documents such as delivery notes and proforma invoices, requisition forms purchasing orders within different institutions," the report said. "This puts the process of accountability at stake."


This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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