Rwanda Wednesday unveiled an electronic auctioning system aimed at facilitating transparency in the auctioning process of loan defaulters’ property.
The platform was launched by the Rwanda Development Board (RDB) in partnership with the Ministry of Justice.
The new platform will help eradicate malpractices such as corruption and undervaluation of property in the auctioning process by eliminating physical contact with brokers, Rwandan Minister of Justice Johnston Busingye said while speaking at the launch event in the Rwandan capital city Kigali.
“The system will reduce the time and steps taken to finalize an auction. It will further increase transparency and eliminate malpractices caused by human interaction,” said Clare Akamanzi, the chief executive of the Rwanda Development Board.
Akamanzi also said the platform is part of Rwanda’s reforms aimed at improving the business environment for the private sector to thrive.
“Private sector contribution to the economic development of Rwanda is primary. We cannot talk about development without developing the private sector; activities such as this help the private sector to thrive in our economy. The net outcome of the electronic system is to improve the quality of auctions and recovery rate. We hope that this system will help banks and the private sector in general to thrive,” she said.
Under the portal interested bidders within the country or abroad will be able to participate in the bid process after paying refundable bid security of 5percent of the quoted price of the property.
The prospective bidder would be able to bid and to see the bidding results at the opening time online.
Prospective bidders will also be able to visually assess the details of the property including checking images of the assets to be auctioned.
The system also provides a possibility for the property owner to object to the price if it is less than 75 percent at the first and second rounds of auction.