Initial discussions on fiscal transparency were held in Kigali in November 2001 by a mission composed of Ms. D. Rehm and Ms. C. Roehler. Discussions between the authorities and Ms. Rehm continued during March/April 2002. This report was updated and completed by Mr. I. Lienert in March 2003.
Law No. 43/2000 Establishing the Organization and Functioning of Provinces; Law No. 4/2001 Establishing the Organization and Functioning of Districts; Law No. 05/2001 Establishing the Organization and Functioning of Urban Authorities; and Law No. 07/2001 Establishing the Organization and Administration of the City of Kigali.
The Road Fund was established in 1989 by Law No. 20/89 (as amended). The National Fund for Assisting Needy Victims of the Massacre and Genocide Committed in Rwanda during December 31, 1994 to October 1, 2000 was established by Law No. 02/98 of January 1998.
The government has a 49.4 percent share in the Banque Commerciale du Rwanda, a 50 percent share in the Banque du Kigali (including ownership by government-owned entities), a 4 percent share in the Banque Continentale Africaine du Rwanda. The government also has a 47 percent direct stake in the Banque Rwandaise du Developpement, which is also partly owned by government-owned enterprises or banks.
Law No. 26/06/99 Relating to Regulations Covering Banks and Other Financial Institutions.
According to the BNR Law, 20 percent of the BNR’s net profits are allocated to a general reserve fund and a further portion—decided by the discretion of the Board of Governors—is dedicated to special reserves.
Guiding legislation includes Decree-Law No. 39/75 regarding Public Enterprises.
Law No. 15/2001 Amending and Completing Law No. 35/91 concerning the Organization of Internal Trade.
A new OBL, together with a new Public Accounting Law, were drafted in the 1999–2001 (to replace the 1979 Decree Law). However, they were withdrawn from parliament, pending adoption of the new constitution.
The Central Projects and External Finance Bureau (CEPEX) was created in the late 1990s, largely taking on the responsibilities of the Investment Directorate of the merged ministries of finance and of planning.
Law No. 15/97 Establishing a Rwanda Revenue Authority, November 1997.
A decision has been made to transfer the responsibility for collecting nontax revenues to the RRA. The public accounting department inherited this role following the splitting of this department from the Treasury.
The main laws regarding taxation are: (i) Law No. 08/97 Direct Taxes on Different Profits and Professional Income (June 1997) as amended; (ii) Law No. 06/01 Law on the Value-Added Tax (June 2001); (iii) excise tax laws; (iv) Law No. 07/98 Duties on Imported Products (August 1998) as amended; (v) Law No. 09/97 Code for Fiscal Procedures, which covers tax collection and penalty provisions.
The 2003 Constitution specifies that Kinyarwanda, English, and French are official languages. All laws presented to parliament are in these three languages.
The MINECOFIN has only one representative on RIPA’s governing board.
“National Program for Strengthening Good Governance for Poverty Reduction,” MINALOC, May 2002.
Districts are allowed to borrow for their development budgets (Article 118 of Law No. 04/2001). However, the minister of local government, not the minister of finance, fixes regulations governing the control of financial activities of districts (Article 143 of same law).
The additional expenditures were mainly for the cost of financing the constitutional referendum and subsequent national elections (additional expenditures for demobilizing troops had already been foreseen).
The NTB has been operating for three years despite the lack of legal provisions for its operations and the consequent inability to impose penalties. The NTB’s website is found at www.ntb.gov.rw and contains information on outstanding tenders and past awards, and procurement procedures.
The financial regulations state that expenditure commitments are to be closed on November 15 and payment order issuance on December 15.
The financial regulations require any unpaid bills relating to a previous year to be paid out of the arrears allocation of the new budget year, in line with strict cash accounting principles.
OTR = Ordonnateur-Trésorier du Rwanda, who has the responsibility to verify payment order requests from spending ministries and to instruct the BNR to pay the suppliers of goods or services. The OTR is the head of the Treasury Department.
Law No. 05/98 establishing the OAG.
See Plan Stratégique de Developpement du Système Statistique National, August 2002.
See “Fiscal and Financial Decentralization Policy,” a document prepared jointly by the MINALOC and the MINECOFIN.