Burundi National Assembly President Ndabirabe threatened an audit with potential sanctions against public enterprises at the beginning of September, citing widespread mismanagement and significant financial losses. The warning came during the presentation of the final audit report on the management of the Burundi Drug Procurement Center (Camebu) by the Minister of Public Health. Ndabirabe expressed indignation over the losses, attributing them to poor management within public enterprises where the state has made substantial investments.
"It is incomprehensible that the recommendations of the National Assembly and the Court of Accounts are not followed," Ndabirabe stated. "If you tell us that they have not been implemented, we will commission an audit with potential sanctions." He added that the poor management of these public enterprises leads to a significant loss of state revenue. "Our country is rich, but there are bad managers in different companies, especially companies in which the State has invested a lot of capital. They are poorly managed," Ndabirabe said. He further described the situation of state-invested companies continuing to record significant losses as "very poor management."
Scrutiny of Enterprise Failures
Burundi National Assembly President Gélase Daniel Ndabirabe cited examples of mismanagement, including theft, and managers purchasing vehicles or constructing multi-story houses. Ndabirabe also stated that the existence of irrecoverable funds was unacceptable.
Faustin Ndikumana, the national director of Parole et action pour le réveil des consciences et l’évolution des mentalités (Parcem), identified several issues contributing to the enterprises' poor performance. "On constate une gestion défaillante, un coût de production élevé et un manque de compétitivité, une faible innovation et adaptation à l’environnement," Ndikumana stated, noting failing management, high production costs, lack of competitiveness, low innovation, and poor adaptation to the environment in these companies. He attributed politicization of appointments as a root cause, where individuals are selected based on political criteria rather than expertise. Ndikumana elaborated, "Ce n’est ni l’expertise, ni l’expérience de la personne en question qui est mise en avant. Il n’y a pas de contrat de performance, d’obligation de résultats pour verser les dividendes à l’Etat," indicating an absence of performance contracts or obligations for dividend payments to the state.
Ndikumana further pointed to corruption and illicit enrichment occurring with total impunity, alongside non-compliance with asset declaration laws. "La déclaration des biens n’est pas respectée alors que la loi impose aux cadres de le faire," he said. He noted a lack of mastery of specifications, an overstaffed workforce, and insufficient investigation into embezzlement cases. To address these issues, Ndikumana emphasized the need for stronger oversight: "Il faut que la Cour des comptes ait des moyens suffisants pour exiger le dépôt des bilans de ces entreprises pour la certification de leurs comptes."
Calls for Stronger Parliamentary Action
Léonce Ngendakumana, a former President of the National Assembly, supported the current President Gélase Daniel Ndabirabe’s statements regarding public enterprise mismanagement. Ngendakumana asserted that the management of public or para-public enterprises falls directly under the mission of elected officials to control government action. He stated, "The management of public or parapublic enterprises falls within this second part of the missions of the people's elected representatives, namely the control of government action."
Ngendakumana argued that the National Assembly should move beyond mere declarations and implement concrete sanctions. He proposed that the legislative body should use oral or written questions directed at government ministers to gather information. Alternatively, he suggested establishing a parliamentary inquiry commission to thoroughly investigate the facts. "It must take action, either by seeking information from the same government member through oral or written questions, or, if necessary, by setting up a parliamentary inquiry commission to establish the facts because the National Assembly must decide based on concrete facts and not on rumor," Ngendakumana explained.
He further noted that both the Constitution of the Republic of Burundi and the National Assembly’s internal rules provide mechanisms for holding ministers accountable. These provisions allow for a motion of no confidence against a minister if investigations conclusively prove a failure in their duties. In such circumstances, Ngendakumana stated that the minister would either resign voluntarily or be dismissed from their position by a decision from the President of the Republic. "In this case, either the minister resigns of his own accord, or he is dismissed from his functions by a decision of the President of the Republic," he added.
Expert Analysis and Recommendations
Faustin Ndikumana, national director of Parole et action pour le réveil des consciences et l’évolution des mentalités (Parcem), urged the Court of Accounts to have sufficient means to demand balance sheets and certify company accounts. Acher Niyonizigiye, an expert in leadership, stated that both internal and external factors influence the success or failure of companies. He emphasized the necessity of audits to understand the causes of failure in para-public enterprises. "Il faut absolument passer par des audits pour bien comprendre les causes de cet échec entrepreneurial," Niyonizigiye said. He noted that if the causes are internal, internal solutions are proposed, but if they are external, environmental changes are required.
Niyonizigiye identified poor governance and environmental challenges as key contributing factors. He stated that leaders of para-public companies are responsible for generating profits for the state. "Les leaders des sociétés paraétatiques ont la responsabilité de générer des profits pour l’Etat," Niyonizigiye explained. When these companies fail to generate profits, their leaders must inform the state about the underlying causes and suggest necessary state actions. The state, in turn, must conduct its own analyses, combining the recommendations from company leaders with findings from external audits to make informed decisions. Niyonizigiye affirmed, "C’est cela qui permettra à l’Etat de prendre les bonnes décisions."