Author: b_igi_adm1n

  • BK-bank shares up for grabs

    By: Randa Rugangazi

    Yesterday, Bank of Kigali officially launched its initial public offering (IPO) of 300,304,000 shares at the price of RWF 125 per share. The bank is looking to raise RWF 37.5 billion from the IPO.

    Bank of Kigali (BK) first declared its intentions for an initial public offering (IPO) December of last year. The government and the bank were going to publicly offer a total of 45 percent of the bank’s shares.

    It was announced on 27 June that 300,304,000 shares would be up for grabs to the Rwandan public starting Thursday, 30 June.

    The IPO will then close on 29 July and BK bank will be listed on the Rwanda Stock Exchange on 29 August.

    During the IPO period, brokers will be taking orders from interested invested for shares.

    The shares will then be distributed out to all investors. Different types of investors have a quota of reserved shares.

    East African investors have access to 82,591,440 shares. Rwandan incorporated businesses have access to 45,045,600.

    The bank’s chief operating office, Lawson Naibo told Igihe.com, “The funds raised will grow the bank’s lending portfolio and expand projects around the country.”

    There is optimism for the bank’s shares to be oversubscribed by investors. This follows the successful Bralirwa IPO issued end of last year. Bralirwa’s stock price shot up by more than 50 percent.

    The stock’s strong performance was later supported by Bralirwa’s net income growing by 62.8 percent. Net income is the balance of business after the reduction of expense costs.

    A company listed on the stock exchange has to regularly release its annual earnings to the public.

    Another contributing factor to the high optimism is BK’s strong asset base forecast to grow at 35 percent within the next five years.

    This growth forecast is based on a solid business plan in which the bank plans to focus on loans to small and medium sized enterprises.

    According to the Ministry of Finance, privatization efforts will boost stock market activity with increased options for investors.

    The efforts will also support the country’s economic growth, attract investors, and increase national savings.

    “Instead of depending on the government, as a shareholder, for capital to finance upcoming projects”, explained Mr. Naibo.

    The Rwanda Stock Exchange provides the bank with access to a new financing platform.

  • Small size Turbo king beer unveiled

    Kigali; Rwanda’s renown brewery company; Bralirwa, yesterday June 30, launched its brand, Turbo King’s small bottle in the event held at Cadillac gardens.

    Turbo products have alcoholic content 6.5% per volume

    Commonly known as men’s beer (inzoga y’abagabo); its petit bottle will be sold at Rwf400 and it’s already on market.

  • US embassy celebrates Independence Day

    The United States of America yesterday held a colourful event to commemorate the 235th Independence Day, when the world super power broke away from the British colonialism.

    The event held at the embassy’s compound, also marked the 50th anniversary of Peace Corps, a program that involves volunteers from the US who assist African countries in development of various sectors meant to improve the welfare of its people.

    The ceremony was presided over by Rwanda’s health Minister Dr. Agnes Binagwaho who hailed the country’s relationship with the U.S government adding that they have achieved a lot particularly in trade.

    “At this auspicious, I take this opportunity on behalf Rwanda government to thank the US government’s assistance in enabling African countries to achieve Millennium Development Goals and Rwanda’s inclusion in the African Growth and Opportunity Act” the minister stressed.

    She also hailed USA’s assistance towards peace resolution in the Great Lakes region as well as peace keeping in war zones such as Sudan’s Darfur region.

    The minister further pointed out that the coincidence of both countries sharing independence dates should be a reminder that the efforts and sacrifices used to save humanity should be cherished.

    “Our objective was similar with that of the US since we all fought to gain freedom and save mankind from oppression,” she said amidst thundering cheers from the audience.

    Binagwaho concluded her remarks a farewell to the outgoing Ambassador Symington adding, “You have been skillful and showed extreme kindness and frankness in your endeavors,“ said the minister urging him to spread the country’s good name.

    On his part, Ambassador Stuart Symington echoed her remarks adding that the liberation wars that highly involved the youth, should encourage youngsters to play a big role in bringing change to their societies.

    He noted that he enjoyed his three year stay in Rwanda and that he was proud to see a good number of economic progress during his term.

    “I’m so proud to see Rwanda’s contribution towards peace keeping in Darfur, access to health has been expanded to rural, agricultural too has also made tremendous progress.

    “Education on the other hand has been beneficial to even the vulnerable, specifically due to the introduction of the 9 year basic education,” He observed.

    The Ambassador further pointed out that in future the US Government in partnership with other states build secure and peaceful world founded on four fundamental freedoms.

    “There must be freedom of speech and expression everywhere in the world, freedom of every person to worship God in people’s own way everywhere in the world” he stressed adding that there should be freedom from want — which translated broader terms, means basic economic freedoms.

    The US independence anniversary is held on 4 July but the Kigali US embassy decided to commemorate it earlier to avoid colliding with the country’s liberation day that is also held on the same day.

  • Auditor General Report: 9.7Billion unaccounted for

    By: Randa Rugangazi

    In the recently released auditor general’s report, a whooping Frw9.7 billion is reportedly unaccounted for. The report says the funds were lost in form of wasteful spending.

    The Auditor General, Obadiah Biraro, presented the state financial audits of the Fiscal Year 2009/2010 to parliament. The audit report presented results of 104 government institutions’ expenditure for fiscal year ended 30 June 2010.

    Among many public unaccounted for were funds paid to Rwandatel by the Education Ministry to provide 300 public schools with internet connection and only provided the service to 84 schools by the end of their contractual period.

    In the report, the Education Ministry many outstanding debts including Frw 67.8 billion of students’ loans still outstanding. Universities funded by the ministry lack their own auditing departments, which is grave problem for auditing purposes.

    The Health Ministry is reported to having a huge debt amount that is still accumulating due to the Mituel de Santé program. The ministry promised to deal with the accumulating debt.

    The Ministry of Local Government (MINILOC) is reported to have outstanding debt worth RWF 64 billion. The debt accumulated through the ministry purchase of motor bikes for local leaders in districts that were changed and no longer exist.

    The basis for allocation of frw4.5 billion to VUP Umurenge wasn’t well accounted for making it hard for the Auditor General’s Office to establish whether the funds fulfilled their objective.

    The Ministry of Agriculture through RADA allocated Frw6 billion for purchasing fertilizers. However, the distribution of the fertilizers was reportedly mishandled, making it hard to establish whether the funds were properly allocated.
    The agriculture ministry also has funds for small projects that have yet to be distributed to such projects.

    Rwanda Revenue Authority is reported to owing debt to other government institutions worth RWF14 billion. The tax funds collected by the institution are at great risk of theft due to poor physical control.

    Mr. Biraro in his presentation, talked about both Kigali City Council and District Office expenses not adding up to the money they were allocating. Districts were cited for failing to follow the proper expense reporting methods required them by law.

    He concluded his annual auditing presentation by praising the progress that has been made by many state institutions in maintaining adequate documentation of their expenses.

    MP Bwiza Connie, in a remark, suggested that Members of Parliament be educated on the auditing process to enable them provide better assessment on the auditing report.

    The report, after being presented to the parliament, was forwarded to the Public Accounts Committee for further assessment.

  • China News agency extends to Rwanda

    Xinhua news agency, a Chinese state owned company has established operations in Rwanda citing the country’s impressive growth rate higher than countries in the rest of east Africa.

    The official launching of Xinhua news agency took place at Kigali Serena hotel.

    Mr. Liang the director of Xinhua news agency, Kigali branch says, “We have setup in Rwanda because of the country’s good and positive image generated through economic development,” he said adding that “The nation has been portraying a growth rate that is higher than average in the region and such accomplishments deserve considerable attention,” he says.

    The agency owns one of major newspapers and Xinhua.net, the most popular website in china and operates CNC news TV. The agency will begin with an online news agency in Rwanda covering news and information in east Africa and Eastern DR-Congo.

    Shu Zhan the Chinese ambassador to Rwanda explains that China has been heavily investing in Eastern Congo and thus establishing operations in Rwanda consequently facilitates Chinas access to the region.

    “Our main responsibility is to bridge the gap between the Chinese people and Rwandans, through establishing direct communication instead of formal relations”, Says ambassador Zhan.

    “We hope that through media exposure, more windows of investment will open in Rwanda from abroad,”Liang notes adding that China’s investment in Rwanda is now about 140 million USD.

    Liang expressed his opinion on Rwanda’s media freedom and media climate saying, “It is my first time coming to Rwanda. I have been impressed so far by the level of media professionalism and manner in which media operates. I feel the media climate here is very attractive. We are looking forward to a prosperous cooperation between the local media and Xinhua”.

    Xinhua news agency is not private but state owned and thus has not been involved in investments. it will report its news online via a website. Xinhua will be in in joint venture with star Africa media which has now more than 32,000 viewers across the nation. It’s news channel is also available on the star Africa service as well as on channel 415 on the DSTV bouquet.

    Responding to igihe.com on the question of whether China receives special treatment from Rwanda and scepticism about investment in Rwandan media, Ambassador Shu Zhan said, “China has no investment in Rwanda’s media sector, and has no special treatment from Rwandan government. Usually, news from Chinese Agencies are not chosen by Rwandan newspapers”.

    Ambassador Zhan adds, “We think that we can get enough news on Rwanda, through newspapers, RTV and Internet, including the Facebook page of H.E. President Paul Kagame.”

    Sought for H.E Zhan’s comments on the alleged squeezing actions by his government against china media, he said, In 2009, China had more than 1,937 different newspapers and 9,851 different magazines. China also has many other Medias like TV, radios, Internet. 90% of them are independent ones.Therefore, we can not imagine what’s squeezing media means”.

    However, the Chinese government is criticized for trying to keep a tight grip on traditional and new media preventing any challenges to its political authority.

    China’s censorship of its media again grabbed headlines in early 2011following an online appeal for Chinese citizens to emulate the revolutions in north Africa and the Middle East.

    Also Google’s battle with the Chinese government over Internet censorship in China and the awarding of the 2010 Nobel Peace Prize to jailed Chinese activist Liu Xiaobo have also drawn increased international attention to media censorship in China.

    China’s burgeoning economy has allowed for greater diversity in China’s media coverage, and experts say the growing Chinese demand for information is testing the regime’s control over the media.

    The watchdog group Reporters without Borders ranked China 171 out of 178 countries in its 2010 worldwide index of press freedom.

    China’s media is undergoing a process of commercialization, which some observers believe is leading to growing competition, diversified content, and an increase in investigative reporting by Chinese news agencies.

    Only state agencies can own media in China, but there is creeping privatization. China News Network Corporation (CNC), a twenty-four-hour global news network launched in July 2010, for example, is reportedly half privately financed.

  • MTN-group director honors genocide victims

    A delegation from MTN Board group based in South Africa are in the country to where they have honored and paid tribute to the Rwanda’s 1994 genocide victims and donated a cheque of Frw1M to the Kigali Memorial site.

    Speaking to Igihe.Com the head of the delegation also the MTN Group’s Director, Van Biljon described the visit as an extreme humbling experience.

    “The image of violence, loss of life and wasted opportunities is what attracts me to say it was a very bad history but also what I have seen in the people of this country, is the national pride that everyone has, and also the progress that has been made in the last 17 years; economically, politically and also socially,” Biljon pointed out.

    MTN Rwanda CEO Khaled Mikkawi and local staff led the group of four members of which, three are from the board committee, MTN Group to Kigali Memorial Center to pay their respect to the victims of the 1994 Rwanda genocide against the Tutsi

    Biljon added that MTN Group foundation indirectly fights against such inhuman acts and also supports the survivors, “We don’t make it direct contribution but certainly what we do in terms of our contribution to the society across all countries of our coverage. We strive to do what we can to local communities and support the victims of such acts like children and orphans directly providing them with possible communication services like extending broad band services to help them get access to information easily”.

    The MTN Group director is impressed with the performance of MTN Rwanda management and the company’s great contribution to the country’s economy.

    MTN Rwanda CEO Mikkawi at the site noted; “we came to pay our respects and to honor dead whose memory will always be within us, be part of our history and be the reason to work tirelessly to develop our country.”

    Among the four delegates; three are the Board members of the MTN Group and accompanied by Allie Shauket Fakie, the Group Executive in charge of MTN Group Business risk Management.

    Serving Rwanda since 1998 MTN has managed to expand its network up 98% of Rwanda’s population with over 2.6 million subscribers.

    Launched in 1994, MTN Group is now a multinational telecommunications group operating in 21 countries in Africa, Asia and the Middle East.

    The group has recorded a total of 147, 2 million subscribers across these countries.

  • Court to decide on fate of Rwandatel

    KIGALI; Nyarugenge commercial court is expected anytime from now to pronounce itself on the survival of embattled telecommunication firm Rwandatel Igihe.com has learnt.

    The court had earlier appointed an interim administrator of the company for 60days that have already expired.

    During the 2-month period, Richard Mugisha was mandated to investigate the company the evidence of which would be principal in the court decisions for declaring the company bankrupt or continue with its operations.

    Speaking to Igihe.com today Mugisha said that the period of 60 days were a fair period and he managed to finish the report on Rwandatel as requested by the Court, “It wasn’t so difficult for me to make the assessments and I think what I presented to the judges was fair enough,” he said.

    Mugisha admitted that the company is now waiting the feedback from the Judges and then see the way forward.

    Mugisha was appointed by the Commercial Court to take over specific roles and responsibilities that included the total management of all the company’s assets and accounts.

    The court also tasked him to supervise Rwandatel’s day-to-day business and oversee expenditures and payments of its debts, taking of loans and giving of the company’s assets as guarantees for loans on behalf of the company in the period.

    A rival telecommunication company MTN Rwanda as Rwandatel’s creditor is so suspicious since the interconnection fees of fixed lines is continuously increasing the debt and they are not sure whether the company will have capacity to pay back.

    “According to the report I presented yesterday to the Judges, Rwandatel owes MTN a whooping Rwf1,341,557,553 and we don’t know if the company is in the position to pay back,” Paul Mugemangango, the Senior Manager, Legal and Corporate Affairs MTN Rwanda told Igihe.com.

    The debt includes Rwf60M accumulated on fixed interconnection fees during the period of 60 days after the revocation of the company’s mobile license.

    According to sources who had access to the report given to the Commercial Court judges, Rwandatel accepts all the debt claimed by MTN.

    Other sources also say that the Chinese company; Huawei who supplied materials is demanding over US$40M and this company is suspicious of the Rwandtel’s ability to clear such a huge debt.

    Rwanda’s utilities regulatory agency withdrew Rwandatel’s GSM Mobile license in April this year and within weeks, the Office of the Registrar General had instituted insolvency proceedings against the company.

    The commercial court in Kigali then appointed an administrator who is a judge of the High commercial court to take charge of the company and advise the court whether the company was solvent or insolvent and should be liquidation.

    Following commencement of insolvency proceedings, Rwandatel had laid off 43.2% of its workforce as part of a company-wide restructuring process to lower its expenditure.

    Operating both GSM Mobile and Fixed licenses, Rwandatel had a total workforce of 317 employees. However, only 180 have been retained to run its remaining voice, internet and data services all of which run on the fixed network.

  • Arusha court refers genocide suspect for trial in Rwanda

    For the first time, the Arusha-based United Nations International Criminal Tribunal for Rwanda has referred a Rwanda genocide suspect Jean Uwinkindi to be tried within the Rwanda court system.

    This action has been welcomed by many Rwandans and this is a sign of confidence the UN tribunal has at long last put in the Rwandan judiciary.

    Uwinkindi, born in 1951 in Rutsiro commune, Kibuye prefecture, was a former Pastor of the Pentecostal Church of Kayenzi, located at Nyamata sector, Kanzenze commune, Kigali-Rural prefecture.

    He is accused of responsibility for attacks against Tutsi at Kayenzi Church, at Biyimana and Rwankeri cellules, in Cyugaro’s swamps.

    His indictment included counts of genocide, conspiracy to commit genocide, and extermination as a crime against humanity.

    He was arrested in Uganda on 30 June 2010 and transferred to the United Nations Detention Facility in Arusha, Tanzania on 2 July 2010.

    According to the tribunal, a specially designated Referral Chamber composed of Judges Florence Rita Arrey, Emile Francis Short and Robert Fremr decided upon assessment of the submissions of the Defence and amici curiae that it was satisfied that the Government of Rwanda was prepared to receive its first referral from the ICTR.

    The panel that took the decision considered the input of the Government of Rwanda, Human Right Watch, the International Association of Democratic Lawyers, the International Criminal Defence Attorneys Association, and the Kigali Bar Association.

    While previous Referral Chambers were not inclined to grant similar applications that had been placed before them, this Chamber was convinced based on the evidence that Rwanda has the ability to accept and prosecute Uwinkindi’s case.

    The Chamber expressed its solemn hope that the Republic of Rwanda would actualize in practice the commitments it made in its filings about its good faith, capacity and willingness to enforce the highest standards of international justice.

    In reaching its decision, the Chamber noted that Rwanda had made material changes in its laws and had indicated its capacity and willingness to prosecute cases referred by the ICTR adhering to internationally recognised fair trial standards enshrined in the ICTR Statute and other human rights instruments.

    In particular, the Chamber found that the issues which concerned previous Referral Chambers, namely the availability of witnesses and their protection, had been addressed to some degree in the intervening period.

    The Referral Chamber also requested that the Registrar appoints the African Commission on Human and Peoples’ Rights to monitor Uwinkindi’s trial in Rwanda and that the ACHPR would bring to the attention of the ICTR President any potential issues that may arise throughout the course of the proceedings.

    The Chamber emphasised its authority under Rule 11 bis to revoke the case from Rwanda as a last resort if necessary.

  • IMF gets first woman boss

    By: Randa Rugangazi

    The International Monetary Fund (IMF) has appointed Christine Lagarde, the French finance minister, as the new IMF Managing Director. Ms Lagarde is the fund’s first female head, also the fifth French pick out of the 11 heads in IMF’s history. Her term will begin on July 5.

    IMF is an intergovernmental organization that oversees the global financial system, by specifically monitoring exchange rates and balance of payments of its member countries. It also facilitates development in poorer countries.

    Lagarde travelled around the world trying to win the backing of world powers. Her win was assured after she earned the backing of America and China earlier this week. She was bidding for the IMF top position against the head of Mexico’s central bank, Agustín Carstens.

    However, her bid has been criticized by many who think that the IMF is handicapped by the lack of diversity in its heads. All of IMF’s 11 heads have come from Europe. Lagarde’s appointment does not help quell criticism that the developing world doesn’t have much say in the IMF’s policymaking.

    The IMF voting system has the U.S with the most voting shares of 16.74 percent, followed by Japan, Germany, France, and UK.

    Ms Lagarde comes into office at a difficult time in the Europe. The IMF is currently overseeing the financial bailouts of three European countries- Greece, Ireland and Portugal. Greece’s economic woes have led to large public protests. A financial bailout is giving money to a country facing the danger of financial bankruptcy.

    Emerging countries will not see Lagarde’s appointment as a favorable decision to their interests. A former IMF chief economist, Simon Johnson, pointed out in the New York Times that Lagarde’s appointment merely shows self interest by Europe- to sort out their own economic troubles.

    She succeeds Dominique Strauss-Kahn who resigned from the position on May 18 due to sexual assault charges brought up against him.

    Strauss-Kahn was appointed IMF chief in July 2007 with the personal support of French President Nicolas Sarkozy. He was formerly minister of economics, finances and industry from 1997 to 1999. It was speculated that he would be a presidential candidate from the French Socialist Party in the next French presidential elections.

    The accuser in Strauss-Kahn’s sexual case hasn’t been identified in the media. But it has been revealed that she is a recent immigrant from Guinea to the U.S. She is charging Strauss-Kahn of sexual assault and attempted rape at the Sofitel New York Hotel where he was staying. She is a housekeeper at the New York hotel.

    Strauss-Kahn posted bail of $1million with additional $5million bail bond; he is under house arrest with electronic monitoring. He pleaded not guilty on 6th June; the next court date is set for 18 July.

  • Fence Akagera for more investment

    By Silver Bugingo

    Government of Rwanda has committed to the construction of a 120-kilometer electric fence to run the boundary of the park at a cost of US$2.7 million. This aims at protecting humans resident around the park area from attacks by wild animals. A fenced Akagera park has high value investment potential and it enables restocking the park with nearly extinct lions and rhinos…

    Disturbing stories of crop vandalism and human injuries caused by an invasion by a herd of about 70 elephants had recently dominated the media.Elephants invaded over hundred families of Kayonza district, Eastern province destroying more than 80 hectares of crops. Intervention of a noisy military helicopter scared the beasts away.

    In quick response to the elephant attacks, the legislature has deliberated on a new law that obliges the state to compensate persons attacked by wild animals from any gazzetted national park.

    However, incidences of vulnerable citizens in the Eastern province dying at the wildlife attacks are more than two decades old. Many people who are well acquainted with the Rwandan dynamics can confirm that historically hundreds of people resident in the park peripheries have been killed and/or injured by wild animals.

    Other statistics indicate that of the 110 elephants, about half are outside the park roaming in the army training area and at occasions; they go into the villages, raiding crops and sometimes injuring residents.

    records indicate that the attacks started as far back as late 1990s. Last year alone, sixteen people were seriously injured, mainly by buffalos and hippos while five people got killed. Property destroyed in form of agricultural fields and buildings and other propertyis valued at billions.

    Talking about the implications of the uncontrolled wildlife dangers yesterday, a Gatsibo district resident who is here on a visit narrated of a lady who was gored by a buffalo just next to the park and she in hospital now; this happens, it’s a weekly occurrence, and the statistics make for quite horrific reading.

    In fact, this will remind many readers of a horrible tale in a novel titled: “Through it All: The Choice is Rejoice” by Mr. Live Wesige. The author tells of how his parents miraculously survived loin’s attack while still in his mother’s womb, to an impossible birth that doctors in Belgium said would surely kill him but he was really born and survived just at the will of God.

    The well-to-do couple had in 1983 driven and paid a visit to relatives in Karangazi survived an accident involving a collision with motor-taxi, husband on the driving wheel was rushed to a Clinique nearby. The helpless pregnant woman remained at the scene and was attacked by lioness that seriously injured her but didn’t kill her.

    To cut a long story short, wildlife in the national park has been causing human deaths even during the late Juvenal Habyarimana’s regime. His regime had denied hundreds of refugees their inviolable right to citizenship saying “the country was densely populated” and that “the national park was as valuable to the country like a heart to a human body”, yet it wasn’t protected with the necessary electric fence.

    Wandering wildlife does not only pose a threat to the property and livelihoods of people living nearby. Reliable sources will tell you that there used to be close to 300 lions in the park and they’ve all been wiped out.

    In 2005,when a lion killed livestock, the owners would poison its carcasses. The lions would keep coming back to the carcasses, ingest the poison and you’d get a couple of them dying indiscriminately.

    The new fence has the potential to curb disease transmission between wildlife and livestock. Absence of a fence had prevented investment,in outside hotels and other investments near the park.

    Effective fencing of the park will enable reintroduction of lions and rhinos to make the site a “big five” reserve, Havemann says. A lot of tourists come to the country to see the mountain gorillas and we’d like to keep those valuable input in the country rather than going to Kenya or Tanzania to see the big five.

    Enacting a compensation law to victims is not the utmost solution. Damaged property may be valued in monetary terms and compensated but human life in invaluable.