Kigali, July 14 (RNA) - One of the best accommodation facility in the western tourist province of Kibuye has risen heated quarrels between the government after a decision to take back the hotel complex on the shores of Lake Kivu, and a renown businessman in the tourism industry, Mr. Pascal Munyampirwa, who had acquired it through a normal privatisation tender contest in late 1999.

As revealed by a detailed documentation availed to Rwanda News Agency (RNA), the problem rose after the September 2004 cabinet meeting deciding to have back Kibuye Guest House for transformation into a high standard hotel in line with the government policy of promoting tourism, by setting up at least one high standard accommodation facility in each of the twelve provinces of the country.

In a phone interview with RNA, Munyampirwa stressed that he was not against the government decision, but rather the way it was implemented.

“I was forced to hand back Kibuye Guest House in a meeting with the Privatisation Secretariat boss, the police Chief in Kibuye Province and the governor of Kibuye province in his office on June 28th, 2005”, said the businessman. “The following days they came to make the inventory of the property before closing it down. I was not able to oppose the decision, but to consider that they refund me before I leave my property”.

Munyampirwa immediately wrote to the Ombudsman, requesting his intervention. “What I request is just to be paid what has been established by experts’ report, and afterwards, I will peacefully vacate the property as provided by the law. I do not owe any debt to the Privatisation secretariat, and as of now, Kibuye Guest House is still my exclusive property in full terms of the law. Kicking me out without pay may cause considerable impact on me, the personnel, my partners as well as bank credit,” reads part of the letter to the Ombudsman.

Presently the businessman is requesting for either authorisation to reopen the operation of his business until he’s paid or to be compensated for the time he was stopped to function. However, according to a letter dated June, 10th 2005, the State Minister in charge of Economic planning, Monique Nsanzabaganwa asked Munyampirwa to hand over the hotel and inventory of the assets to the privatization secretariat by June 24th 2005 stating that, “the complex should be immediately closed down,” and “financial aspects to be settled later”.

Mr. Munyampirwa angrily responded on June 21st 2005 saying that, he was “shocked” by the words “hand over” and closing down”, “because Kibuye Guest House is my property I bought it from the government. I am not renting it, nor have I looted it; I bought the hotel through a normal process and paid everything, no more debt as evidenced by the attached documents I send to you. Closing down as you say has no point, because as of now, I have no judicial case with anybody about Kibuye Guest House”.

When contacted for reaction, Manassé Twahirwa, the new Executive Secretary of Privatisation told RNA that “the government decided to take back Kibuye Guest House because Mr. Munyampirwa failed to fulfil obligations set forth in the sale agreement of September 20th, 1999 accorded by both parties.”

“I am very comfortable with this dossier,” Twahirwa told RNA, adding that “the problem with Mr Munyampirwa is not lack of capital, but rather management skills in the specific domain of hostelry”.

The former head of Privatisation, Bonaventure Niyibizi had earlier written to the Kibuye Guest House proprietor, informing him that, “in reference to the contract signed between yourself and the Minister of Finances and Economic planning on September 20th,1999, the government of Rwanda observes that the commitments taken by yourself have not been met, therefore the objectives set by the privatisation process are not achieved. This is why the Government has decided to immediately take back the Guest House, in accordance to the terms of the contract.”

The letter was written a few days after the September cabinet meeting instructing the Minister of Finance and Economic Planning together with the Minister of Commerce, Industry, Investment, Tourism and Cooperatives, “to look for capable investors to renovate Kibuye Guest House as the government wishes, in order to promote tourism in that region, because Mr. Pascal Munyampirwa who bought it has shown little capacity to do it. If the investors are found, the state will compensate Mr. Munyampirwa as usually done for private properties that are nationalized.”

Munyampirwa revealed to RNA that, the hotel expected by the government could cost roughly US$3 million, an amount he can not afford. When asked why the government could not identify another site in Kibuye for the a high standard hotel, the Executive Secretary of Privatisation said, “the Kibuye Guest House site is particularly interesting, but more to that, the decision to take it back is motivated by the fact that Mr. Munyampirwa breached the sale agreement by failure to implement his business plan. Therefore, the government has the right to take it back amicably. If he resists, we may even ask him to pay the rent for the six years he has been unable to fulfil his commitments”.

But Munyampirwa refutes this as ‘mere allegations,’ “Kibuye Guest House was in deplorable conditions when I took over. I renovated and even expanded it. Various reports from the Privatisation secretariat itself, the media and even the World Bank commended the work I have done. Nobody has criticised me of not fulfilling my obligations.

“Even a recent report by experts on behalf of Caisse Hypothécaire du Rwanda, a government body, shows how valuable the Guest House has risen in the past six years I have been operating it,” underlined the businessman adding that, the Privatisation secretariat itself recently commissioned an evaluation of Kibuye Guest House by Deloite & Touche. Their report gives a total value of approximately 600 million Rwandan francs (estimated US$1.2 million).

“If you recall that the total investment agreed upon in my business plan was of only Rwf.213, 108, 172 (US$ 400.000), including the acquisition cost of the hotel, new equipments, renovation and new infrastructures, you will find that I have even invested and worked beyond what was expected of me in reference to the agreement,” emphasized Munyampirwa.

The businessman believes the government has changed its expectations after the construction of Kivu Sun in Gisenyi, and would like him to reproduce the same model. “When we signed the sale agreement in 1999, Kivu Sun did not yet exist. Now they want me to do the same in Kibuye. They ignore the fact of high cost and that it is not what we had agreed upon. But I am not against the government’s decision as far as public interest is concerned, especially in promoting tourism in Kibuye. What I request is just that my rights are respected. I should be compensated and paid before I vacate the property.”

Rwanda’s government policy of promoting tourism led to setting up of high standard accommodation facilities in each of the twelve provinces of the country like the ‘Five Star’ Intercontinental in Kigali city, Akagera Game Lodge in Akagera National Park (Umutara province), as well as the ‘Four Star’ Kivu Sun in Gisenyi province, these hotels now believed to be doing well.

Officials in the Privatization secretariat enumerated to RNA a series of obligations that the owner of Kibuye Guest House has not met as stipulated in the sale agreement. These are related to the renovation programme and new infrastructures as set in the business plan as well as the obligation not to alienate the property without consent of the government.

Munyampirwa is also accused of having entered into a joint partnership with other seven associates to create a company ‘Société de Commerce et Tourisme’ Guest House Kibuye SA, without approval from the government as stipulated in Art. 18 of the 1999 sale agreement. One of the associate, a Belgian national, Walter Raffo is said to be having a legal case with Munyampirwa over this venture.

Nonetheless, what surprises many observers is that prior to the September 2004 cabinet decision and along the whole controversy, the government has never produced a proper and professional report indicating in detail how the hotel owner failed to fulfil his part as set in the sale agreement.

But Twahirwa the Privatisation boss thinks a way forward may be found to the crisis. He revealed to RNA that, during a meeting held at his office between the two parties on July 12th 2005, they decided to constitute a joint mission “Caisse Hypothécaire & Deloite & Touche” to harmonise their reports and determine the exact value of the Guest House to refund the owner. The two firms had been previously commissioned by Munyampirwa and the Privatisation Secretariat respectively. (End)

RNA-ARI/Econ/ PR/ 14 07 05/16:25 GMT

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