An Electronic Auctioning System will officially be launched on Wednesday, August 5, as courts move to reduce corruption in the auctioning process of loan defaulters' property.
The system is aimed at reducing the human element in the auctioning process thereby tackling corruption and undervaluation of auctioned properties.
The Registrar General Richard Kayibanda told The New Times in an interview on Tuesday that with the electronic collateral auctioning system (https://cyamunara.gov.rw/auction/), any interested bidder will be able to bid from wherever they are, whether in Rwanda or abroad, as the bidding will be done online.
He said that the use of the digital collateral auctioning system will make the process more transparent and make the bidding environment friendlier contrary to some past instances where some 'brokers' would physically harass genuine bidders due to human interaction.
"It will be easier, faster and more transparent. The client can place their bid at any time and will be able to see the bidding results at the opening time, which will be communicated through email," he explained.
Kayibanda added that interested bidders will be able to visually assess the asset before bidding as the system will contain, in addition to the normal asset details in the auction public advert, the pictures of the assets to be auctioned.
"Those interested in visiting the asset physically will be given that opportunity as well," he said.
How it will work
A resident in Rwanda or abroad, who intends to bid for the property with reference price equal to or more than Rwf5 million pays refundable bid security of five per cent (5%) of the reference price of the property.
Article 5 of the Ministerial Order stipulates that interested bidders enter offer prices through the electronic system where they are kept confidentially.
Six hours before the auction hour, the prices are disclosed, again through the electronic system and also submitted by email to both the bailiff and each bidder.
According to the Head of the Access to Justice Services in the Ministry of Justice, Martine Urujeni, this fee will help weed out 'mafia rings' formed by some brokers to distort prices and value.
"This fee is deposited onto the bank account specified by the Ministry of Justice and is refunded if the bidder is not awarded the property in question within three working days," she explained.
Urujeni added that should the successful bidder pay the price within the time limits specified by law, he or she deducts the bid security from the price to be paid.