Kigali City Mayor didn’t refute AG report

Editor, I wish to shed some light on the article published in The New Times on Saturday where you indicated that Kigali city mayor refuted the Auditor General’s report. Kigali City fully agrees with the AG’s report and the leadership of the city was signatory to the AG’s findings. What the Mayor was emphasizing during the press conference was the reason for taking the loans and what the present situation is as far as servicing them is concerned.
Mayor Dr. Aisa Kirabo’s City Hall was mentioned in the Auditor General’s 2008 report
Mayor Dr. Aisa Kirabo’s City Hall was mentioned in the Auditor General’s 2008 report

Editor,

I wish to shed some light on the article published in The New Times on Saturday where you indicated that Kigali city mayor refuted the Auditor General’s report.

Kigali City fully agrees with the AG’s report and the leadership of the city was signatory to the AG’s findings.

What the Mayor was emphasizing during the press conference was the reason for taking the loans and what the present situation is as far as servicing them is concerned.

In the same light allow me to point out the background of the loans Kigali city took. In an effort to support the low income population to access affordable housing, Kigali City took a loan of RWF 741,958,772 from the African Development Corporation (ADC) at an interest rate of 12%.

The loan was aimed at acquiring 39 hectares in Akumunigo in Nyarugenge for the construction of affordable houses for the poor.

There are plans of constructing apartments for over 3000 families. The acquisition of this loan followed a grant awarded to the City by the World Bank under the  infrastructure development project (PIGU) which wanted to avail basic infrastructure namely roads, the drainage system and demarcating plots in that area. Presently, fully serviced plots are available to investors to construct affordable apartments.

The initial terms  of payment were scheduled to start in November 2008. However, due to the slow purchase of the plots by the potential investors, discussions were held with ADC and an extension was granted to start in February 2009. And Kigali City completed servicing this loan in December 2009.

Also indicated in the article was a Rwf 228 million loan acquired from ECOBANK. However, this was an overdraft facility that started in 2003. Since the closure of this facility in 2007 Kigali city agreed with ECOBANK on the modalities of paying this debt whereby Rwf 9.7 million is paid every month. The payments on this debt are on course.

In conclusion, Kigali City would like to reiterate that it is in agreement with the AG’s report and it is equally important that we inform the public on the reasons Kigali city took these loans and their outcomes.  

Rangira Bruno
PRO Kigali City Council

brangira@kigalicity.gov.rw

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