The agriculture inputs subsidizing program is marred with continued gaps in design, control and management, Auditor General Report has highlighted. The report for the financial year that ended June 30, 2020 shows that the government spent Rwf12 billion in subsidizing agricultural inputs bringing the total investment in this initiative to Rwf39.9 billion from 2017 to June 2020. However, the report established that there is a lack of a mechanism by Rwanda Agriculture and Animal Resources Development Board (RAB) to prevent payment of agriculture inputs before ensuring that inputs reach farmers. “The government continues to pay 100 per cent of the subsidies before inputs reach the intended farmers. There is so far no mechanism to prevent this, because the contract provides that the government pays once the inputs have reached agro-dealers,” it shows. Auditor General Report noted that there is lack of accountability in monitoring agro-dealers activities. “There is no sufficient assurance that agriculture inputs for which the government paid the subsidies reach the intended beneficiaries since RAB does not reconcile quantities received by the agro-dealers with those received by farmers,” the report points out, adding that no government agency monitors the agro-dealers activities. Auditors noted that RAB and APTC failed to track and evaluate seeds and fertilizers distributed in 30 districts for agriculture in season 2020 A and B despite the fact that this was their responsibility under the crop intensification program’s regulations. So far, the auditor said, the distribution lists of agriculture inputs showing the signatures of farmers are only kept by agro-dealers. “The districts and sectors are not required to keep them. Therefore once subsidized inputs are delivered to agro-dealers for onward delivery to farmers, there is a loss of accountability and audit trail since agro-dealers are private operators, not accountable to any government entity,” reads the report. The audit has also found that there is inadequate planning for quantities of fertilizers and seeds used. It says there is a mismatch between the cultivated area and the quantity of inputs subsidized by the government in 2020. While the cultivated area diminished by 32 per cent, the actual quantities of fertilizers used exceeded the planned quantities by 5,096,668 Kilograms which is 11 per cent exceed. There was also a substantial difference of 1,199,283 Kilograms between the planned quantities of seeds and actual quantities distributed to farmers. “The amount of seeds that were not distributed was equal to 25 percent of the expected amount. Consequently the program design coupled with gaps identified could result to program inefficiency or failure,” the report warns. Irregularities in procurement, irrigation schemes Other irregularities, according to the audit, include inefficiencies in the procurement process. During the year ended June 30, the audit found that RAB disregarded the principles of efficiency, effectiveness, transparency and equity in awarding tenders worth Rwf21.8 billion representing 40 per cent of the RAB total budget of Rwf54.1 billion. The reported irregularities include, among others, conducting inadequate market surveys, improper technical and financial proposals evaluation, sidelining the internal tender committee in awarding some tenders. The report again has again highlighted the issue of the centre of excellence in farm mechanization that had stalled for years. The works for the centre were supposed to be complete June 30 2019 after several contract extensions. However so far RAB had paid Rwf3.3 billion representing 29 per cent of the Rwf12.2B total funding yet the overall progress was at 34 per cent. “There is a risk of financial loss of the amounts already spent,” the auditor says. Other inefficiencies, auditor general highlighted, include lack of database for irrigation equipment supplied and installed in various irrigation schemes countrywide. In 2019, a new irrigation master plan was approved with new identified potential irrigation projects. From the last three years of implementation of the master plans, the report revealed, RAB has invested Rwf1.7 billion on irrigation facilities and equipment but RAB lacks a database that details the identification and location of equipment supplied and installed in various irrigation schemes. “This weakens the control over the acquired assets. Consequently, there is a risk of loss or misappropriation of assets scattered in various irrigation schemes,” adds the report.
