Rwandan public sector spent FRw6.4 billion via 'inappropriate procurement'

Will Green is news editor of Supply Management
23 June 2014

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23 June 2014 | Will Green

Rwandan government agencies issued tenders worth FRw6.4 billion (£5.6 million) through “inappropriate procurement methods”, according to a finance report by the auditor general.

The report, covering state finances for the year ended 30 June 2013, said in one case FRw5.3 billion (£4.6 million) was spent on a road repair project using single sourcing. A further FRw1.08 billion (£933,000) was spent by public entities “without appropriate supporting documents”.

The report said: “Cases of non-compliance with procurement laws and regulations have significantly reduced in public entities audited. Despite this progress, 10 entities used inappropriate procurement methods to award tenders worth FRw6.4 billion during the year.

“There is a need for chief budget managers to apply the appropriate procurement methods in award of tenders. In addition, chief budget managers should ensure that all necessary documents are kept to support each tender awarded.”

The report said “poor contract management” had led to 46 occasions when construction projects worth a total of FRw23.8 billion (£20.5 million) were delayed and nine contracts worth FRw909 million (£784,000) were abandoned, after FRw606 million (£524,000) had been paid to contractors.

The report also said millions of dollars had been spent on IT systems but in some instances components were not operational or people had not been trained to use software, industrial equipment and materials worth FRw1.2 billion (£1.08 million) were “idle” and not in use, and a tourist boat bought for FRw308 million (£267,000) had been out of use for three years after its propeller was damaged but not replaced.

The report pointed out public sector bodies were responsible for “wasteful expenditure” totalling FRw1.05 billion (£911,000) for items including court fines, claims for damages and penalties paid to suppliers.

However, the report said 32 per cent of all organisations covered by the audits were given a “clean opinion”, compared to 28 per cent in the previous year, and “this trend is positive and shows that public entities are making tremendous efforts to ensure proper accountability for public funds”. The audits covered a total of FRw1.5 trillion (£1.3 billion) of government spend.

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