The finances of the Government of Swaziland / eSwatini
are in such a mess that billions of emalangeni cannot be accounted for, the
kingdom’s Auditor General (AG) reported.
In his annual report for the year ending March 2018, AG
Timothy Matsebula stated government revenue, assets, and liabilities ‘were
materially misstated’. He said in some cases it was impossible to reconcile government
cash books with bank statements.
The AG report revealed government bank balances had
been misstated by E1.3 billion. The amount of revenue collected in the kingdom
was misstated by E1.35 billion. The amount of income tax and road toll collected
was understated by E1.34 billion.
The amount of government financial liabilities was misstated
by E13 billion.
The AG report demonstrates that the government which is
handpicked by King Mswati III, sub-Saharan Africa’s last absolute monarch, does
not have a clear idea how much money it has and how it is being spent.
The AG reported, ‘Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken
on the basis of these Financial Statements.’
On 27 February 2019 Finance Minister Neal Rijkenberg in his annual budget said Swaziland was broke. He said the
kingdom faced ‘an unprecedented economic crisis’. Part of his solution was to not pay public servants cost of living wage increases.
He also announced tax increases on electricity, tobacco and
alcohol.
He also said, ‘This budget seeks to ensure that your
hard-earned taxes and our international partner’s financial support is spent in
a sustainable, transparent manner for the betterment of our economy and future
generations.’
He added, ‘All levels of Government will be held
accountable for transparent, responsive communication and delivery on our responsibilities.’
The Auditor General report shows government finances
are not transparent. The Finance Minister does not have the correct information
about the kingdom’s actual revenues and expenditures.
In his budget speech he said, ‘We are in trouble
because we have not been balancing our books.’ A reading of the AG report
suggests it is impossible to say one way or another whether the books in
Swaziland balance.
This is not the first time the Swaziland Government
has been exposed for losing control of the kingdom’s revenues and expenditures.
In the
previous annual report to 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.’
Richard
Rooney
See also
Govt
ministries broke law on spending
US$632
million error in govt accounts
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