RIB issues tough warning against auction fraud
Rwanda Investigation Bureau (RIB) on August 02, issued a stern warning against anyone who may carry out malpractices in public auctions and also paraded suspects who were arrested in connection with manipulating auctions to devalue assets and properties so that they are acquired at an abnormally low price.
Following the outcry of people who complained about malpractices committed in public auctions, RIB arrested four suspects, including a lawyer who is also a certified receiver, a buyer and two blockers. They had collectively devalued a petrol station which was up for auctioning.
In such incidents, the buyer connives with the court bailiff or a receiver and the blockers in fraudulent deal where the former gives a certain amount to the bailiff or receiver and the blockers to facilitate the devaluing and purchase.
Reacting to the incident and the arrests, the acting spokesperson of RIB Modeste Mbabazi detailed how the suspects ran the scam with an aim of acquiring a petrol station at a low price compared to its real value.
“In the process of doing so, they committed several crimes ranging from issuing a bouncing cheque, corruption, fraud, to falsification of documents.
Part of the penalties against the suspects include a prison sentence ranging of three to five years and a fine of Rwf 3 to Rwf 5 million as stipulated in article 318 of the penal code for the crime of obtaining the property of another person by fraud
On the issuance of a bouncing cheque, Mbabazi said that the suspects who will be charged with this particular offence will be risking a jail term ranging from two to five year and a fine of five to ten times the value of that cheque as per article 373 of the penal code while for the charge of corruption the penal code sets a jail term of two to five years and fine of two to ten time the value of the illegal benefit granted or promised.
“These are heavy penalties and the only way to avoid them is not to get involved in such malpractices,” Mbabazi advised.
He added that RIB is aware of all the tricks used in influencing auctions and determined to put an end to such ill acts.
"These are not the only suspects, there are others that have also been arrested in separate cases over the same crime and we take this opportunity to announce that we have intensified our crackdown against such practices,” said Mbabazi.
“ Such malpractices affect the economy of the country and we are mandated to ensure that the laws in place are abided with and put an end to such scams,” said the spokesperson.
He also appealed to the public to not involve themselves in such malpractices and also warned that RIB has committed to enhance its crackdown against organized auction fraud.
“We also urge anyone who encounters such malpractices or suspects it to immediately inform us so as we can investigate and halt those malpractices before anyone falls victim of that,” said Mbabazi.
