Government loses billions in incomplete, extended contracts

Published by Théophile Niyitegeka
On 4 May 2017 saa 01:28
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The Auditor General, Obadiah Biraro has revealed that a total of 98 contracts worth Rwf 95.6 billion in 2016 were not fully executed as they were abandoned by tender winners leaving a big toll of financial losses to the government.

He revealed this yesterday as he presented the financial audit report of government entities for the year that ended on 30th June 2016.

“Activities for 75 contracts were delayed while 23 contractors abandoned the projects. Some of the implementers of the abandoned projects had already been paid colossal sums of money,” he said.

Biraro said that Rwf 1.6 billion were misused, Rfw 590 million released without authorization documents, Rwf 906 were misappropriated while Rwf 1.5 of 1.6 billion indicated as missing in previous audit reports was not recovered in 2016.

Talking on contracts management, Biraro said there is still a poor use of funds.

He pointed out an example of Rwanda Transport Development Agency (RTDA) saying; “RTDA never completes contracts on time. We have realized that contracts execution time was extended at 90%.”

The report shows that RTDA revised and extended 26 contracts of road constructors in 2016 which attracted extra Rwf 18.6 billion in expenses.

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The Auditor General, Obadiah Biraro