The Auditor-General, Obadiah Biraro recently released his annual report for the financial year that ended June 2019. The audit was conducted between May 2019 and 20 April 2020 revealing issues in different projects Implementation. Doing Business has compiled five major agriculture projects that were found to be facing challenges. $12m Center of Excellence for agriculture mechanization According to the Auditor-General Report, the works-establishing the center of excellence in farm mechanization- have stopped. It says that on 17 May 2017, Rwanda Agricultural Development and Animal Resources Board (RAB) signed a contract worth $12.2 million with Technofab Engineering Ltd to establish the Center of Excellence in farm mechanization in Kanombe Sector, Kicukiro District. However, it was noted that the contractor suspended the work at 58 per cent execution due to lack of financial capacity to execute the contract. Agricultural mechanization remains low among farmers due to limited land consolidation, lack of access to tilling tractors on both hilly and flat land, few investors importing the equipment, and a low number of farmers in cooperatives. The center, if established, could increase mechanization from the current 32 percent to 75 percent by 2024. Irrigation projects On 26 October 2013, the Government obtained a loan of $120.05 million from Export-Import Bank (EXIM Bank) of India to execute exports-targeted irrigation (ETI) project. The project aimed at providing modern irrigation facilities to 7,000 hectares in Mahama, Mpanga and Nyamugali sectors of Kirehe District. However, the Auditor-General Report noted that in March 2020 (7 months after the expected completion date) revealed that this project was not yet complete. Despite an extension of the project period, the OAG report says, the following project activities are remarkably lagging behind. Again on 8 May 2017, RAB signed a contract of $16.5 million with OM Metals –SPML joint venture of constructing irrigation and developing watershed in Mpanga Sector. The expected completion date of the contract is 31 March 2020. However, it was noted that in March 2020, the works completed was at the level of 72.8 per cent. The other issue is that RAB conducted various feasibility studies for irrigation area through rehabilitation or development of marshlands including dams, and other irrigation facilities. However, as reported in the previous audit report, the audit again identified feasibility studies that have been conducted in 1 to 3 years ago at costs of Rwf2.2 billion whose projects were not subsequently implemented. Auditor General says that there is no road map to implement the related projects yet the government spent significant funds on feasibility studies. Local seed production Auditor General Report also noted that there is concern over continuing dependence on seed importation. National Leadership Retreat of 2018 resolved to reach self-reliance on the local production of agriculture seeds needed in the country within a period of 3 years. However, RAB is continuing to heavily depend on imported seeds. During the year ended 30 June 2019, RAB imported 3,579 metric tonnes of seeds at the cost of Rwf6.5 billion. This high level of seeds dependence, the report, is associated with the failure of RAB to achieve the set local seed production annual target. It was noted that RAB and agriculture sector partners achieved 31% of set annual seeds production target. Recovery of fertilizers loan Government institutions, agro-dealers and farmers’ cooperatives received fertilizersand other inputs from Post-Harvest Handling and Storage Task Force (PHHSTF) for distribution to farmers on credit. These distributors had an obligation to pay back after collecting money from farmers in the agreed period. However, by the time of audit in January 2020, it was noted that these distributors owed to PHHSTF a debt of Rwf11.5 billion which remained uncollected for a period ranging from 2 to 9 years since 2010. Poor management of locally produced seeds RAB acquires locally produced seeds from different seeds multipliers across the country at the prices agreed in signed contracts. The audit noted that RAB incurred a loss of Rwf128.6 million due to poor management of seeds acquired and stored at RUBILIZI station. This loss was associated with stored seeds which lost their germination capacity and are sold for consumption at a price lower than acquisition cost.
