In reference to the recent publications that were made in your newspaper of August 24-August 30 and of August 31-September 2009 with the headlines “Time to shake up Minecofin Directory of the Treasury” And “For Quick pay you are advised to “see” the OT”, the Ministry of Finance and Economic Planning (Minecofin) would like to make some clarifications in regards to the government payment system and the strong criticism raised against the Treasury Unit.

The primary goal of any government payment system is to enable the circulation of money in its economy. In the case of Rwanda, when the National Budget is voted in Parliament, its execution is decentralized to all budget agencies, Ministries, Districts, semi and autonomous agencies. All these institutions will utilize funds allocated to them to deliver and execute programs set up in the National Budget in the interest of achieving our EDPRS objectives.   

The Government uses “SMARTGOV” (a Budget Master Software) for its payment system, which includes mainly direct payments to suppliers of goods and services, salaries of government employees and indirect payment to budget agencies and districts. These expenditures are presented in three broad categories: wages & salaries, goods and services, and transfers to budget agencies.

According to ministerial instructions, payment orders (“OP”) are supposed to be made within 30 days. Upon presentation of all supporting documents in the Treasury Unit, the OP cannot exceed 14 working days without being paid and on a first come first served basis. A recent internal audit carried out in 2008, showed that 91 percent of OPs were paid in less than 14 days and 3 percent were returned to budget agencies due to errors.

It is important to note that The Rwanda Focus was wrongly informed about delays in the payment process of two companies cited in its last issue: “Nextt Technologies” and “ROKO” construction which  are quoted as having strong concerns with the Treasury Unit for delayed of payment! These are false allegations and clear evidence show the contrary:  

Nextt Technologies’s Payment Order was initiated by the Ministry of Foreign Affairs on Wednesday 19th August 2009, sent to the Treasury Unit (in MINECOFIN) on Friday 21st August 2009 and cleared by the Treasury Operations team on Friday 28th August 2009. The said OP was signed by the OT on Monday 31st August 2009. In total, this payment took only six (6) working days!

Similarly, ROKO construction company’s Payment Order was initiated on the 10th August 2009 by the Administration and Finance Unit in Minecofin. It was recorded on the 12th August 2009 in the Treasury Unit, verified by the officers in charge on the 17th August 2009 and signed by “OT” for payment on 25th August 2009. This also totals to ten (10) working days!

These are facts as evidenced in the copies of the benefiaries which can always be verified in the payment system (SMARTGOV/Budget Master). However, we note with astonishment that payments were made to both companies within 14 days prior to the allegations made in the last publication.

For any “Payment Order” to be processed through the National Bank of Rwanda, there are conditions to be fulfilled before the payment is sent to the respective beneficiaries. A team of officers in Treasury Unit verifies that the Payment Order has all the required documents before it is signed and sent in the Central Bank for payment.

It is important to note that when errors, omissions and missing documents are found during the verification process, the said OP is immediately returned to the institution that issued it. Consequently, the Treasury Unit in Minecofin does not interact directly with service providers, hence business people do not need to travel long distances to Minecofin’s corridors to follow up their  payments (“gukurikirana amafaranga yabo”).

In any event that an OP is sent back to an institution or agency for correction, the blame should not be on the Treasury Unit in MINECOFIN but rather to the mother institution that failed to present all the required documents for quick payment as per the rules.

However, it should be noted that like elsewhere in the world, treasury managements face some challenges.

There can be issues of liquidity constraints or adverse macro economic conditions that would require to slow down liquidity injection, which can at times cause delays in government transactions. Nevertheless, the Government, through its institutions including Minecofin remains committed to providing the best service to the public and service providers.

Ange Mutesi is the officer in charge of Public Relations and Communications, Minecofin

Editor’s note: we publish this response to respect the right of response of anyone or any entity to things written of them in a publication.

However let it be noted that our problem was not with Minecofin; our problem was with the Treasury Unit in Minecofin. Also this response does not explain why teams of verifiers in the Treasury Unit always rudely inform those looking for pay to go and come back since they are “processing government salaries”.

As for the delayed payments of Nextt Technologies and ROKO which are explained here, let our readers know that we have representatives of the two companies complaining on recorder; and they are complianing quite bitterly.

Finally as we write this we understand Minecofin has a brand new director of The Treasury; our simple hope is that now things will move much faster.

Related articles:

For quick pay you are advised to “see” the OT 

Time to shake up Minecofin Directory of the Treasury