2014年-世界发展银行全球_Rwanda_Transformation_of_Agriculture_Sector_Phase_3___Integrated_Fiduciary_Assessment_Report_62页_2mb

Summary of Rwanda: Transformation of Agriculture Sector Program Phase 3 (PSTA 3) - Integrated Fiduciary Assessment Report (IFAR)

Core Content

The Integrated Fiduciary Assessment Report (IFAR) for the Rwanda Transformation of Agriculture Sector Program Phase 3 (PSTA 3) was prepared by the World Bank Group in May–July 2014. The report evaluates the fiduciary risks and mitigation measures associated with the Program-for-Results (PforR) approach for the agricultural transformation program. The program is designed to support Rwanda's strategic goals under EDPRS 2 (Economic Development and Poverty Reduction Strategy), aiming to transform the agriculture sector from subsistence-based to knowledge-based and to accelerate agricultural growth for rural income increase and poverty reduction.

Main Program Objectives

• Program Development Objective (PDO): Increase and intensify productivity of the agricultural and livestock sectors, and expand value chain development.
• Supporting Strategic Goals: Enhance food security and nutrition, contributing to poverty reduction and inclusive economic growth.
• Program Areas:
  1. Agriculture and animal resource intensification
  2. Research, technology transfer, and professionalization of farmers
  3. Value chain development and private sector investment
  4. Institutional development and agricultural cross-cutting issues

Key Risks and Mitigation Measures

Financial Management (FM) Risks

• Strengths:

  • Legislative scrutiny of the Finance Law in line with the Organic Budget Law (OBL)
  • Sufficient predictability of cash availability for program activities
  • Use of government classification system for budget preparation and reporting
  • Timely and reliable financial reporting facilitated by accounting systems

• Challenges:

  • Sector strategic plans not aligned with budget classification formats
  • Limited audit coverage in districts due to absence of Public Accounts Committees (PACs)
  • The Auditor General's report is submitted within 10 months post-year-end, which may not allow enough time for legislative scrutiny

• Mitigation Measures:

  • Capacity building for internal audit and financial management
  • Strengthening financial reporting and internal controls
  • Ensuring alignment of strategic plans with budget formats

Procurement Management Risks

• Strengths:

  • Robust legal framework based on the UNCITRAL model
  • Moving towards modernizing procurement function for improved compliance, transparency, and efficiency
  • Strong institutional arrangements for public procurement oversight

• Challenges:

  • Irregularities in the implementation of procurement laws, regulations, and procedures
  • Non-open competitive methods used for contract awards
  • Lack of published contract awards on public media
  • Inadequate written records of procurement and contract documents
  • Delays in payment of contractors
  • Informal influence on procurement decisions by budget administrators

• Mitigation Measures:

  • Strengthening procurement processes at the district level
  • Ensuring transparency and publication of procurement activities
  • Training and capacity building for procurement staff
  • Enhancing accountability mechanisms for procurement committees

Fraud and Corruption (F&C) Risks

• Strengths:

  • Strong institutional, legal, and organizational frameworks for combating F&C
  • Legal amendments in 2013 allowing the Office of the Ombudsman (OM) to prosecute corruption cases
  • Presence of the Whistle Blowers Protection Act (2013)
  • Organic Law on Leadership Code of Conduct (2008)
  • Effective enforcement of legal frameworks, especially in PforR implementing agencies
  • Severe sanctions for those found guilty of F&C, including imprisonment, dismissal, and public disclosure

• Challenges:

  • Inadequate arrangements at subnational levels due to lack of decentralization of OM and shortage of qualified PFM staff
  • Difficulty in obtaining evidence and information for prosecution due to fear
  • Reluctance of private businesses to report corruption for fear of losing government contracts
  • "Soft corruption" exists in the way things are done, even though formal systems are strong

• Mitigation Measures:

  • Strengthening internal audit and financial management systems
  • Enhancing transparency in procurement and contract management
  • Institutionalizing complaint handling systems and ensuring regular follow-up
  • Training and capacity building for PFM staff and procurement personnel

Key Institutions and Stakeholders

• Implementing Agencies:

  • Ministry of Agriculture and Animal Resources (MINAGRI)
  • Rwanda Agriculture Board (RAB)
  • National Agriculture Export Board (NAEB)
  • 30 Districts

• Oversight Bodies:

  • Rwanda Public Procurement Authority (RPPA)
  • Office of the Auditor General (OAG)
  • National Public Prosecution Authority (NPPA)
  • Office of the Ombudsman (OM)

• Other Stakeholders:

  • Private Sector Federation and member confederations
  • Transparency International (TI) Rwanda
  • National Cooperatives Confederation of Rwanda

Cross-Cutting Considerations

• Political Will and Institutional Commitment: Strong political will and institutions dedicated to fighting corruption and promoting public integrity and accountability.
• Corruption Perception Index (CPI): Rwanda ranked 4th least corrupt in Africa (out of 53 countries) and 49th globally (out of 177 countries) in 2013, with a score of 5.3, showing significant improvement from 2.7 in 2007.
• Complaint Handling Systems: Effective systems are in place for receiving and addressing complaints and grievances related to F&C and procurement. These include:
  • The OM and RPPA for handling corruption and procurement issues
  • The District Independent Review Panels (DIRPs) and National Independent Review Panel (NIRP)
  • Third-party arrangements with TI Rwanda and other stakeholders

Conclusion

• Fiduciary Risk Rating: Separate Disbursement-Linked Indicators (DLIs) are not necessary for the fiduciary aspect, as the three fiduciary functions are integrated into other key results areas.
• Program Action Plan (PAP): Specific mitigation measures are proposed in the PAP to minimize the opportunity for F&C.
• Overall Assessment: The program has strong institutional frameworks and political commitment to combating F&C, but there are areas requiring further capacity building and institutional strengthening, especially at the district level.

Key Figures and Tables

• Figure 1: Annual Value of Contracts Distributed by Implementing Agency and Type
• Figure 2: Rwandan Citizens' Encounters/Experience with Paying Bribes
• Figure 3: Process for Complaints-handling for F&C
• Figure 4: Illustration of a Complaints-handling System for Procurement at the District Level
• Table 1: Projected PSTA 3 Expenditures 2013–2018
• Table 2–19: Various risk analyses and ratings for financial management, procurement, and fraud and corruption aspects

Final Remarks

The assessment concluded that the program is well-positioned to achieve its objectives with the support of strong legal and institutional frameworks. However, there are still challenges that require attention, particularly in the areas of subnational oversight, evidence collection, and capacity building. The PAP outlines specific actions to address these risks and ensure the effective and efficient use of program resources.