The recently launched E-auction is a new platform that will help the auctioneers to use the electronic systems for the execution of enforcement orders instead of a traditional bidding form.
The system was launched by the Rwanda Development Board RDB and the Ministry of Justice in late June 2021.
It is expected that the new platform will reduce the processes involved in the enforcement orders and curtail malpractices occasioned by human interactions but also allow potential international bidders to participate.
Speaking at the launch, Johnston Busingye, Minister of Justice and Attorney General, hailed the platform as a long-term solution to the challenges faced in the execution of enforcement orders.
“I would like to commend RDB and other partners for working closely with the Ministry of Justice to effect change in the execution of enforcement orders, form a manual to an electronic system that is in line with the government’s vision of digitizing all services,” Minister Busingye said.
The new Registrar General instruction on Management, Lease, Auction, and Takeover of mortgages, provides for a bid deposit to ensure that only genuine bidders participate in the auction.
The instructions also provide for 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 the auction.
What the law says
Article 5 of the 2020 Ministerial Order relating to the electronic execution of enforcement orders stipulates that bidders offer prices through the electronic system of execution of enforcement orders.
Article 6 of the same Ministerial Order explains that a person residing in Rwanda or abroad who intends to bid for the property with a reference price equal to or more than Rwf5 million pays refundable bid security of five percent 5 per cent of the reference price of the property.