By RNA Reporter
February 17, 2010
Despite an improvement in accountability for taxpayers’ money, government officials embezzling public money are also becoming smarter – using tactics similar to “nuclear physics”, according to the Auditor General of State Finances (AG).
In the latest report for 2008 presented to both chambers of Parliament, Deputy AG Mr. Biraro. R. Obadiah described the nature in which government official are stealing state finances as “scandalous”, saying the techniques officials are using are similar to “nuclear physics”. He said embezzlers are becoming “smarter” and “more sophisticated”.
The Deputy AG, standing in for his boss Ms. Evelyn Kamagaju, who is on sick leave, also said embezzlement has increased tremendously as indicated by the cases detailed by the report, compared to previous years. He said contrary to previously when money sometimes got lost because due “skills gap” on the part of those making the accountability, this time they are stealing “openly”.
Some Rwf. 683million (about USD$2million) disappeared without any traces, according to Mr. Biraro. The biggest culprit is the Rwanda Institute of Administration and Managements (RIAM) – where some Rwf. 210million went off the books. Another is the Forest Conservation Project (PAFOR) where some Rwf. 180million is nowhere to be seen. Gasabo district is also singled out where some Rwf 190m is gone.
Other places named as bases for embezzlers by the Auditor General’s report included Gicumbi district (Rwf 63m); Kigali Institute of Science and Technology KIST (Rwf 33m); Gatsibo district; Kirehe district; and others.
Over the past year, officials from these institutions have been arrested and are facing prosecution. Mr. Marc Kabandanda and other senior staff at RIAM are in jail over embezzlement. PAFOR officials are also in court over graft. The entire senior administrative hierarchy of Kirehe district is also in court.
According to the Deputy Auditor General, in Kirehe district, the Executive Secretary managed to put himself as a “nurse” on the payment roll of Global Fund, from where funding is channeled for combating HIV/Aids, Malaria and Tuberculosis.
On a positive not however, compared to 2007, the year in review saw an improvement in accountability for allocated finances by different government departments. In 2008, Rwf. 4.4billion is not accounted for, down from Rwf 6.5billion the previous year (2007).
The audit covered 69 percent of all state institutions – up from 60 percent in the previous year, according to the Auditor General.
Highlights of major cases
The Rwanda Utilities Regulatory Agency has not submitted any books of accounts. The AG said no convincing reason has been given for the situation.
Districts with unnecessary account numbers: rural Nyamasheke district was found to own 42 accounts in different banks. Gatsibo district for its part has 37 account numbers. The AG described this situation as “hopeless”.
Government broadcaster ORINFOR – under which fall state TV, radio, two newspapers and a printery – has a “gap” of Rwf 718million in its accounts attributed to massive irregularities in its accounting methods. The AG also described the methods used to manage taxpayers’ money in ORINFOR, the Rwanda Bureau of Standards (RBS) and School of Finance and Banking, as “fraudulent”.
The Community Development Fund (CDF) – which supports local administrative units, was found to be having a “gap” of Rwf. 140million, and officials there are unable to explain where the money went.
The National Social Security Fund (NSSF) and government have debts between them totaling Rwf5.8billion. This is not the end of the story because the two sides also have another debt shared dating back to before 1990 amounting to Rwf 25 billion. The AG described this situation as “fishing in troubled waters” because neither side has a clear plan of how this loophole will be rectified.
The Auditor General also found a problem in the management of the Fund for Genocide Survivors (FARG) in which government puts 5% of the annual budget, for helping survivors of the Tutsi massacre. The Ministries of Finance and Local Government withdrew Rwf 2.6billion but its accountability does not appear anywhere.
“There are no documents or receipts. No reconciliation statements,” said deputy AG Mr. Biraro, before adding that the audit team was told the computer of the “expert” who was employed to reconcile the expenditures for this Rwf 2.6billion has “exploded”, prompting lengthy laughter from lawmakers.
For the National University of Rwanda, the Auditor General said he has no words to describe what is happening there. According to him, NUR imported its own private auditors, a practice the AG criticized, saying as a government department, it must be audited. Mr. Biraro said there is an audit ongoing on NUR but that what has been discovered can only be described as “scandalous”.
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