The Auditor General of Rwanda, Alexis Kamuhire, has released a report revealing a substantial increase in the misappropriation of public funds in the last financial year. The report, tabled before parliament, highlights that public expenditure that cannot be accounted for doubled from Rwf3.2 billion in 2021 to Rwf6.4 billion in 2022. This significant increase is attributed to a lack of strong internal controls in public institutions.
The Auditor General's report indicates that over Rwf2.4 billion was wasted, while Rwf3.1 billion was lost due to overpayment, and over Rwf169 million was diverted. The report also notes that unlawful expenditure increased by 87 percent between 2021 and 2022. In response to these findings, Kamuhire recommended that chief budget managers implement strong internal controls to prevent such cases of irregular expenditure.
The Auditor General audited 221 public entities in the last financial year, 11 more than in 2021. The audit focused on sectors aimed at improving citizens' lives, including agriculture, health, transport, education, infrastructure, and social protection. Despite the increase in unlawful expenditure, institutions that implemented the Auditor General's recommendations increased from 48 percent to 57 percent, indicating some improvement.
The report cites the lack of strategic plans or boards of directors in some public institutions as a major cause of the unlawful expenditure. The Water and Sanitation Corporation (WASAC) was specifically mentioned as not having a strategic plan or a board of directors. Other institutions, including the Ministry of Culture, Rwanda Education Board, and Rwanda Information Society Authority, also lack strategic plans.
Out of Rwf2.4 billion that was supposed to be recovered from the previous year, only Rwf177 million has been recovered. A significant portion of the unrecovered money, over Rwf800 million, was meant to be spent on buying materials for different public projects. Additionally, Rwf464 million was stolen, and Rwf541 million was used for personal gain.
The Auditor General's report also notes that government expenditure increased from Rwf4,368 billion in 2021 to Rwf4,604 billion in the last financial year. The report emphasizes the need for public institutions to implement strong internal controls and strategic plans to prevent the misappropriation of public funds.
The recovery of stolen or fraudulently used funds constitutes a significant loss to the government. The Auditor General's recommendations aim to improve accountability and transparency in public institutions, ensuring that public funds are used effectively and efficiently to improve citizens' lives.
Key points
- Unaccountable public expenditure doubled to Rwf6.4 billion in 2022.
- Lack of strategic plans and oversight in public institutions contributed to the misappropriation of public funds.
- Institutions that implemented the Auditor General's recommendations increased from 48 percent to 57 percent.
