2014年-世界发展银行全球_Rwanda___Fiduciary_Assessment_on_a_Proposed_Credit_64页_2mb

Fiduciary Assessment Summary: Rwanda Public Sector Governance Program-for-Results (PforR)

Core Content

This fiduciary assessment was conducted for a proposed World Bank credit of SDR 65.9 million (US$100 million equivalent) to the Republic of Rwanda for a Public Sector Governance Program-for-Results (PforR). The assessment aimed to evaluate the financial management (FM), procurement management, and governance and anti-corruption (GAC) systems in Rwanda to ensure the credit is used efficiently, effectively, and transparently.

The assessment followed the OECD-DAC four pillars approach for procurement risk analysis and the World Bank’s Draft Guidance Notes on PforR Operations. It involved consultations with key officials, stakeholders, and oversight bodies such as the Ministry of Finance and Economic Planning (MINECOFIN), Rwanda Revenue Authority (RRA), Office of the Auditor General (OAG), Rwanda Public Procurement Authority (RPPA), and National Institute of Statistics Rwanda (NISR). It also included a district council from each of the four provinces and Kigali City.

Main Findings

1. Financial Management Systems

• Strengths:

  • Simplified public financial guidelines for chief budget managers.
  • Systematic, participatory, and transparent planning and budget preparation.
  • Strong financial management legal framework.

• Challenges:

  • Shortage of qualified personnel, especially at the district level.
  • Inadequate internal audit functions at both national and subnational levels.
  • Improper or incomplete books of accounts leading to qualified financial statements.
  • Weak internal controls, including poor records management and over-expenditure on budget lines.
  • Delay in submission of annual audit reports to Parliament.
  • Limited use of accrual accounting and lack of a comprehensive operating procedures manual (COPM).

2. Procurement Management

• Legal Framework:

  • Based on the UNCITRAL model, robust and comprehensive.
  • Government is moving toward e-procurement to improve compliance, transparency, and efficiency.

• Procurement Operations:

  • E-procurement is being planned and a conceptual design has been submitted to the Government.
  • The procurement process is being modernized with the introduction of e-procurement systems.
  • There are issues with contract management, including suspicious delays in payments and informal influence on procurement decisions.

3. Governance and Anti-Corruption (GAC)

• Institutional Framework:

  • Strong legal and institutional arrangements for fraud and corruption control.
  • Clear division of responsibilities between the Office of the Ombudsman (for corruption) and the Criminal Investigation Department (CID) (for fraud).
  • The National Public Prosecution Authority (NPPA) is responsible for prosecuting cases after investigations.
  • The Whistle Blowers Protection Act was passed in 2013, but its impact is yet to be fully assessed.

• Oversight and Compliance:

  • The Public Accounts Committee (PAC) of Parliament has improved its implementation of audit recommendations.
  • The PAC conducts public hearings and refers cases to the NPPA for prosecution.
  • Oversight mechanisms are in place, but more work is needed at the district level due to capacity constraints.
  • The Office of the Ombudsman (OM) conducts surprise checks on implementing agencies and districts.

4. Program Action Plan (PAP)

• The PAP includes critical mitigation measures to address identified risks.
• It emphasizes capacity building in financial management and procurement.
• It also includes strengthening internal audit functions and improving transparency and accountability.

Key Risks

• Staff Shortage and Turnover: Lack of qualified personnel, especially at the district level, and high turnover among investigators.
• Budget and Reporting Issues: Inadequate budgeting and reporting at the SSP program/subprogram level.
• Internal Audit Weaknesses: Limited audit capacity and underdeveloped internal audit functions.
• Accounting and Reporting Gaps: Incomplete books of accounts and absence of a cash flow statement in consolidated financial reports.
• Procurement Challenges: Weak contract management and limited technical support for e-procurement.
• Fraud and Corruption Gaps: Inadequate arrangements for addressing fraud and corruption at the subnational level and difficulties in obtaining evidence.

Recommendations

• Develop and implement a comprehensive operating procedures manual (COPM).
• Strengthen internal audit functions, especially at the district level.
• Improve the capacity of the financial management system, including e-procurement and technical support.
• Enhance the integration of procurement and financial management information systems (IFMIS).
• Ensure that the implementation of the program is aligned with the PFM-SSP pillars and themes.
• Continue to strengthen the legal and institutional framework for anti-corruption and fraud control.
• Address the challenges of retaining qualified staff and improving internal controls.

Conclusion

The assessment concludes that Rwanda has a strong institutional and legal framework for financial management and anti-corruption. However, there are significant gaps in human resources, internal audit functions, and procurement management that need to be addressed to ensure the success of the PforR program. The proposed credit will support the government in improving these areas through capacity building and strengthening accountability mechanisms.