WASAC, REG react to equipment mismanagement accusations

Published by IGIHE
On 9 May 2017 saa 01:25
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Water and Sanitation Corporation (WASAC) and Rwanda Energy Group (REG) have reacted to the recent 2016 Auditor General’s report which accuses both institutions of mismanaging materials worth Rwf 15.2 billion.

The CEO of WASAC, James Sano appearing before parliament yesterday explained that some of the queries raised in the Auditor General’s report have already been addressed.

As the officials appeared before parliament to defend their budgetary proposals, they were made to respond to the queries of keeping some equipment idle in stores.

“Commenting on Auditor General’s report, at first WASAC stored materials whose value was beyond Rwf 10 billion but have since been utilized leaving material worth Rwf1 billion which is an indication of good progress in putting the said material to proper use,” he said.

Sano explained that most of the stored materials worth Rwf 1.3 billion were left after completing big projects while others were kept in stores to be used in cases of emergencies and or crises.

Commenting on the performance of the Corporation, he explained that non-revenue water was reduced from 42% to 35% and plan to reduce it further to 25% in the 2017/2018 budget.

The CEO of REG, Jean Bosco Mugiraneza also explained that the situation changed after the audit was carried last year.

“We have agreements with various institutions in the country and abroad that store materials from who receive when we need to use the materials,” he said.

“At the time of making the audit we had stored materials which we no longer wanted. We later sold them through public auction and we are continuing to do so,” he added.

According to the report presented last week WASAC was reported to have a store filled with unused materials or rarely used worth Rwf 1.3 billion and two water treatment plants in Nyagatare worth Rwf 1.7 billion which have been not operational for a year. These add to reported unused Rwf 1.5 billion and Rwf 2.7 billion worth of water reservoirs at Kalisimbi under a Geothermal project which have been unused for three years.

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Nzove water treatment plant is being expanded to address water shortage.