Auditor General Alexis Kamuhire has announced that his office will strengthen "preventive audits" after this approach contributed to the recovery of nearly Rwf9.3 billion in 2024.
The recovered amount is 98 per cent of potential losses in public projects that had been reported since 2023.
Kamuhire said this on Tuesday, May 6, as he presented to Parliament the report on public finance management for the fiscal year ended on June 2024.
He pointed out that the money had been unduly included in project contracts by entities such as Water and Sanitation Corporation (WASAC), the Ministry of Trade and Industry, Rwanda Housing Authority, Rwanda Transport Development Agency (RTDA), Rwanda Utilities Regulatory Authority (RURA), and Rwanda Basic Education Board (REB).
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The preventive audit approach consists of reviewing contracts before their implementation or while they are still under implementation. It allows the Office of the Auditor General to detect potential financial losses early, increasing the chances of recovering or avoiding improper payments.
Kamuhire explained that the Rwf9.3 billion was recovered because the associated projects were still ongoing and the contracts had not yet been finalised. He expressed optimism that the remaining balance--just over Rwf100 million--would also be recovered.
"This preventive audit approach is producing strong results," Kamuhire said. "We are committed to continuing with it until losses in public finance are eliminated."
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According to the 2023 report, financial losses were often due to poorly designed contracts, weak monitoring of construction projects, and inadequate review of invoices. These were linked to duplicated or inflated items and overpayments to contractors.
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MPs commended the recovery of the public funds and urged more rigorous efforts in ensuring efficient public expenditure.
For MP Beth Murora, there's still need for further improvement in ensuring value for money. Despite some progress made in 2024, she noted that performance in this area remained below expectations.
Kamuhire reported that 66 per cent of public institutions received unqualified audit opinions on value-for-money performance in 2024, a seven-point increase from performance in 2023.
"I encourage stronger focus on value-for-money audits and the adoption of guiding principles to ensure public funds are used effectively," Murora said, pointing out that this is a critical time that demands optimal utilisation of national resources.
She also suggested that more rigorous market surveys should be conducted prior to contract signing to ensure prices align with market rates.
For Murora, contractors take advantage of inflated contract values due to poor or non-existent market research, hence ripping off the government.
"If preventive audits include verifying whether market surveys were done, they may reduce the likelihood of overpricing and protect public resources," she said.
