Rwanda utility firm's bosses in audit probe
By RODRIGUE RWIRAHIRA Special Correspondent
Posted Saturday, March 29 2014 at 18:29

In Summary
EWSA management cites numerous past reforms and inoperative software
as the cause of their failure.
Auditor General Obadia Biraro told legislators that possible wasteful
expenditure and embezzlement might have taken place.
Among 80 queries presented by the audit report, was the purchase of
the Oracle software for financial management which was inoperative,
and failed to produce a reconciled financial report of the company.
Officials of Rwanda's Energy, Water and Sanitation Authority (EWSA)
have appeared before a parliamentary committee over failure to produce
a financial statement of the 2012 budget execution.
The EWSA management cites numerous past reforms and inoperative
software as the cause of their failure.
The Auditor General Obadia Biraro told legislators that possible
wasteful expenditure and embezzlement might have taken place.
ALSO READ: Rwanda loses billions through irregular tenders
"We have seen around Rwf33 billion ($48.8 million) unsupported cash in
suspense accounts, whose origin we don't know; the dormant software
also gives no value for money," Mr Biraro told MPs.
Among 80 queries presented by the audit report, was the purchase of
the Oracle software for financial management which was inoperative,
and failed to produce a reconciled financial report of the company.
The expensive computer application which was supposed to analyse data
of the company's assets, billing process and procurement, and check of
stock balances, was equally faulted for having caused a Rwf 3.6
billion ($5.3 million) negative balance on the company's balance
sheet.
The internationally recognised software was bought at $1.1 million in
2009, with a $98,000 annual renewal fee.
The parliamentary committee heard that the two companies hired to
configure and install the software failed to abide by the contract
terms of reference which resulted in zero output of the software.
"Do you still buy licenses even if nobody in your institution has
mastered the usage and practicability of the software? That is a clear
waste of money," said Théoneste Karenzi, the deputy chairperson of the
Public Accounts Committee.
In their defence, authorities in the energy company attributed failure
of the software to lack of skills by staff, although the company
contracted to install it was also supposed to train EWSA's workers.
Legislators believe a lot remains at stake following the mistakes
arising from the software procurement, process.
"The first company was to execute the project within six months; but
you have extended the period and given it to a second contractor who
made no difference," said Juvenal Nkusi, adding that first company's
contract had expired but EWSA kept giving it more tasks to execute.
EWSA officials in charge of procurement and ICT said that a number of
complaints were lodged to the management of the contracted companies
but a solution had not been reached.
EWSA's director-general Ntare Karitanyi, assured lawmakers of changes
in the firm's handling of such matters.
"Indeed, the shortfalls of the Oracle rollout raises critical issues
on EWSA's financial management system, and we need to do a complete
engineering of the programme for future use," said Mr Karitanyi.
It might take a little longer for the EWSA to produce a clean audit
report as the company is yet to restructure after lawmakers voted that
it be split into two separate entities — the Energy Holding Company
and Water and Sanitation Company, in order to improve efficiency. The
legislators proposed that the two firms be commercial-driven.
READ: Call to privatise water, energy in Rwanda
http://www.theeastafrican.co.ke/news/Rwanda-utility-firm-s-bosses-in-audit-probe-/-/2558/2262352/-/4np3xoz/-/index.html
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