The annual report from Swaziland’s Auditor General has
revealed widespread financial incompetence across many government ministries.
Financial accounts are incomplete, billions of
emalangeni are unaccounted for and laid-down rules, guidelines and procedures
are ignored.
The report covers the financial year to 31 March 2017.
Acting Auditor General
Muziwandile Dlamini said, ‘Bank balances were misstated by E7,528,772,278.72
due to non-reconciliation between the government cash books and bank
statements. Some bank balances were overstated by E2,285,935,191.93 and other
bank account balances were understated by E5,242,837,086.79 thus reflecting an
incorrect cash flow position of the Government of Swaziland at year end.’
The report details
inconsistencies throughout government, including:
DEPUTY
PRIME MINISTER OFFICE
Disability payments are going to people who do not
qualify and those who are entitled are not getting them because the DPM’s
Office has not developed guidelines on how to distribute grants. During the
three years 2014 to 2016 disability grants amounting to E12.4 million were
disbursed in the absence of guidelines which should have been created in line
with the National Disability Policy of 2013. Presently, eligibility assessment
and screening of disabled citizens is conducted by social workers. The Auditor General’s report identified
non-deserving people from across Swaziland who received a total of at
least E228,720 without proper approval.
MINISTRY
OF EDUCATION AND TRAINING
More than E3 million is unaccounted for by the Ministry of Education and
Training. The report stated that the money was part of E23 million allocated to
the ministry for rehabilitation of schools that were damaged by storms. Only
E20 million was used for the project, an under-expenditure of 13 percent. Under
expenditures, according to the report, were as serious as over-expenditures because
if funds were not used, development would be retarded and economic growth
negatively affected.
The Ministry also underspent on a project to supply water to schools. E2
million was approved and released but expenditure only amounted to E247,000, an
under-expenditure of 88 percent.
MINISTRY
OF HOME AFFAIRS
Government has lost E1.04 million paying salaries for four immigration officers who have been
suspended from work, three of them on full pay since June 2014. No information
was forthcoming about their cases and whether criminal proceedings had taken
place against them. In another case the salary of an officer had been paid for
three months after his death.
MINISTRY
OF NATURAL RESOURCES AND ENERGY
A conveyancer defrauded the ministry of E3.29 million by submitting
false information relating to the transfer of legal titles on two properties in
2014. The two properties were valued at E34 million and E21 million but the
Registrar of Deeds was told they were valued at E2 million and E1 million.
The
conveyancer who was not named in the report should have paid
transfer duty of E3.29 million but only E20,000 has been recovered. The
Auditor General could not find transfer duty certificates when
auditing the revenue collections by the Deeds Registry.
STRATEGIC OIL RESERVE FUND: An amount of E35.82 million was transferred from the Strategic
Oil Reserve Fund
without following proper procedures. The money was
transferred on 25 August 2016 and based on a 3 percent interest rate it
had
earned an interest amounting to E1,077,571 by six months later. The
Auditor General was not given any evidence supporting or explaining
the transfer of the funds even though the public accounts committee
(PAC) had ordered
that the Ministry of Natural Resources and Energy should provide
documentation
that the withdrawal and transfer was done with the permission of the
Ministry
of Finance. The Auditor General concluded the money was taken illegally.
MINISTRY
FOR TINKHUNDLA ADMINISTRATION AND DEVELOPMENT
Water
project material amounting to E432,033 has gone missing at
Mangcongco Inkhundla. The auditors discovered that water project
materials
amounting to E221,033 had remained unused for seven years. The material
was
kept at an Umbutfo Swaziland Defence Force (USDF) camp situated in
Mangcongco. This, according to the auditors, indicated that bills of
quantities were
not used at every stage of the water project to give appropriate
quantities and
to correctly define the extent of work based on drawings and
specifications of
the project. The bills of quantities, according to the report, should
have been
prepared by an expert such as a water engineer.
According to delivery notes, the material was acknowledged to have been
delivered. Therefore, the material could have been stolen after delivery. The
report expressed a concern on the weak controls which existed within the
ministry, whereby funds were released without ensuring that technical experts
were involved when the material was quantified and released. The ministry also displayed a care-free attitude by not designing a
follow-up mechanism of the project to ensure that the project was executed and
completed properly. The ministry was negligent in taking care of scarce public
funds.
EMPOWERMENT FUND: An amount of E3.67 million for
the Empowerment Fund was used by the Ministry for Tinkhundla Administration and
Development without rules and regulations or any documented control. The report
concluded there was a risk that the fund could be used for purposes not
intended.
Swaziland’s lack of financial prudence has been noted
internationally. Each year the United States reviews governments that receive its
assistance help ensure US taxpayer money is used appropriately and to provide
opportunities to dialogue with governments on the importance of fiscal
transparency. The Fiscal Transparency Report on Swaziland for
2017
stated, ‘During the review period, budget documents were available to the
general public, including online. While budget documents provided a general
picture of government revenues and expenditures, revenues from natural
resources and land leases were not included in the budget.
‘Expenditures to support the royal family were
included in the budget but lacked specific detail and were not subject to the
same oversight as the rest of the budget. Information in the budget was
considered generally reliable, and the supreme audit institution’s reports of
the government’s annual financial statements were published within a reasonable
period of time, but some budget items were not subject to audit.
‘The criteria and procedures for awarding natural
resource extraction licenses and contracts were outlined in law, but the
opacity of the procedures, which involve submitting applications for licenses
directly to the king, cast doubt on whether the government actually followed
the law in practice. Basic information on natural resource extraction awards
was not always publicly available.
‘Swaziland’s fiscal transparency would be improved by:
providing more detail on expenditures and revenues in the budget, particularly
for off-budget accounts, natural resource revenues, and royal family
expenditures; subjecting the entire budget to audit and oversight;
demonstrating applicable laws are followed in practice for awarding natural
resource extraction contracts and licenses; and making basic information on
natural resource extraction awards publicly available.’
See also
SWAZI
BUDGET A TALE OF WOES
SWAZI
POLITICIANS PAY TO BE REVIEWED
https://swazimedia.blogspot.co.uk/2018/03/swazi-politicians-pay-to-be-reviewed.html
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