Swaziland Newsletter No. 817 – 8 March 2024

 

Swaziland Newsletter No. 817 – 8 March 2024

News from and about Swaziland, compiled by Global Aktion, Denmark (www.globalaktion.dk) in collaboration with Swazi Media Commentary (www.swazimedia.blogspot.com), and sent to all with an interest in Swaziland - free of charge.

 

eSwatini’s reconstruction fund fraud: 12 investigated for claiming over E1 million

By Saboor Bayat, BNN Breaking News, 6 March 2024

SOURCE 

MBABANE: In a significant development, at least 12 applicants are under investigation by the Royal Eswatini Police Service (REPS) for allegedly defrauding the government of over E1 million through false claims to the Reconstruction Fund. This revelation comes from the Ministry of Finance’s annual performance report for the 2023/2024 financial year, highlighting a concerning misuse of funds meant to aid businesses affected by the 2021 civil unrest.

The investigations focus on applicants accused of submitting claims for damages that never occurred, using tampered documents, including quotations and invoices, and fraudulent company stamps. This misconduct undermines the fundamental aim of the Reconstruction Fund, introduced by His Majesty King Mswati III in September 2021 with an initial government injection of E500 million. The fund’s objective is to provide financial support for the rehabilitation of business infrastructures and the replacement of machinery, equipment, and stock for micro and small business enterprises devastated during the June and July 2021 civil unrest.

As of January 31, 2024, the fund had approved 553 applications totaling E267 581 096.73, with E236 122 555.66 already disbursed to applicants. Despite the significant financial aid provided, the Ministry of Finance reported several challenges, including the difficulty in ensuring compliance and accountability among recipients. Issues such as applicants’ failure to respond, indecision, and the reluctance of suppliers to accept guarantees without upfront payment, have paved the way for fraudulent activities. Moreover, the refusal of suppliers to honor old quotations has necessitated new quotations at the payment stage, further complicating the fund’s operations.

In response to these fraudulent activities, suspicious files were handed over to REPS for thorough investigation. The Fraud Unit within REPS has played a crucial role in this process, leading to charges and court appearances for some suspects, who are currently out on bail. The Ministry of Finance and REPS are working closely to address these issues, ensuring that the Reconstruction Fund fulfills its purpose of aiding those genuinely affected by the civil unrest, rather than becoming a vehicle for fraudulent gain.

This situation underscores the challenges of administering large-scale financial aid programs and the importance of rigorous oversight and accountability measures. As the investigations continue, the outcome will not only impact the accused individuals but also shape future policies and procedures for managing and distributing aid funds in Eswatini, ensuring that assistance reaches those truly in need and contributes to the nation’s recovery and development.

 

What is so special about spending R160million renovating King Mswati’s Palaces amid shortage of drugs in hospitals?

Opinion by Zweli Martin Dlamini, Swaziland News, 3 March, 2024

SOURCE 

It is surprising that, at the time when emaSwati are struggling with no drugs in hospitals and a collapsing education system, King Mswati and his Finance Minister Neal Rijikernberg opted to steal R160million claiming to be renovating Palaces and/or State houses. 

The budget suggests that around eight hundred thousand Rands (R800,000.00) was allocated for rural water or boreholes and to the best of my knowledge, with each borehole costing one hundred thousand Rands(R100,000.00), this means only eight (8) borehole might be introduced across the entire country.

Mswati is pocketing R160million to renovate his Palaces and the 1.2million emaSwati will share boreholes worth R800,000.00, what nonsense is this?.

What service is Mswati providing to the citizens of this country to deserve such a huge amount of money, while emaSwati are struggling with no drugs and access to clean water?.

The State owned Eswatini Observer described the recent Budget delivered by Finance Minister Neal Rijikernberg as the people’s budget, that was King Mswati’s budget and his Members of Parliament (MPs) will approve it because as convicted MP Bacede Mabuza articulated in court, there’s no Parliament in country where the word from one man is final.

Mswati remain a political parasite that public resources, there’s nothing like renovation of Palaces or State houses.

Every year the King is cashing this money saying he will renovate his Palaces, this is a legitimated ‘fraud’ by a person whose extravagancy and absolute addiction to a lavish lifestyle, has undermined the State’s capability to deliver basic services to the people.

But even if the Palaces are renovated, the question is; why are taxpayers forced to renovate another man’s homes while emaSwati are struggling with no drugs in hospitals?

Clearly, there’s no political will to solve the social challenges affecting this country.

But then time will tell, this regime must continue to keep emaSwati hungry, poor and frustrated.

One day even the security officers who are sustaining the Tinkhundla in democratic system with guns will have no alternative but take part in the process of removing this cruel and oppressive regime.

See also

R160million to renovate King Mswati’s Palaces.

https://swazilandnews.co.za/fundza.php?nguyiphi=6136

 

Untouchable, powerful people involved in corruption – AG

by Sibusiso Dlamini, eSwatini Observer, 3 March 2024

SOURCE 

Auditor General (AG) Timothy Matsebula has alleged that his life remains at risk, as he is yet to receive the essential security he so requires as he faces the people he reprimands for corrupt practices against government on a daily basis.  

In a week that has seen him dominate headlines for exposing a maze of irregular practices draining billions of Emalangeni from taxpayers, he has revealed to the nation that he is facing a daunting challenge in combatting widespread corruption in the country.

Matsebula bemoans the pervasive grip of influential and untouchable figures armed with substantial financial resources, which he says make it an uphill battle to reprimand those found with their hands in the cookie jar and instigate meaningful change.

The AG said he felt it was important that the nation knows that he grapples with formidable challenges in executing his duties, emphasising that the prevalence of influential figures complicates the process of exposing and holding wrongdoers accountable.

“There are way too many corrupt and powerful people in our country,” he said, disclosing the intricacies of his struggles in combating corruption.

He underscored the nexus between wealth and corruption, disclosing an alarming occurrence from the past year when he was given the green light by Cabinet to initiate forensic investigations, only to then be ‘disturbed’.

To read more of this report, click here

http://new.observer.org.sz/details.php?id=22126

 

ICC stolen material has completed a house - MP

By Nonduduzo Kunene and Sabelo Majola, Times of eSwatini, 5 March 2024

SOURCE 

MBABANE: Lobamba MP Michael Masilela stunned legislators when he alleged that theft at the ICC and FISH construction site was so rampant that a house had been completed using the stolen material.

Masilela said he could even take the Members of Parliament (MPs) to the house in question, if they needed proof on what he was submitting about. He shared that the house was boasting costly material, like water taps, which cost no less than E25 000 and these were the same taps that had allegedly been procured for the ICC and FISH project. Masilela submitted that one of the biggest setbacks at the International Convention Centre (ICC) and Five Star Hotel (FISH) was theft and this anomaly was contributing immensely to the delay in completing the project. The MP said this during the debate of the Ministry of Finance’s annual performance report for the financial year 2023/24 in Parliament yesterday.

Masilela’s argument was that emaSwati had adopted a culture of stealing and made it a normal way of life. He said some employees at the site were complaining that the project would take forever to complete, because people were helping themselves to the building material. Masilela mentioned to the MPs that, given the setting of the project, which is within the Lobamba Constituency, he was aware of the anomalies that were ongoing at the construction site and he challenged the Minister of Finance, Neal Rijkenberg, to do something about it.

“It is such a pity that when one raises these issues, the concerns are interpreted out of context and it appears as though you are attacking the country’s authority. My biggest concern is that we are stealing too much and the country will not achieve much until the issue of corruption is dealt with head-on,” he said.

According to the Ministry of Economic Planning and Development report, the ICC’s actual expenditure for the current financial year was E175 116 785 and the revised practical completion date was now December 2024. One of the challenges in this project, as highlighted in the report, include that the process of having the EXIM Bank money being disbursed was delaying, much against the expectation of the ministry. “The current budget allocation under local resources has been exhausted; any claim for work done cannot be paid under the prevailing situation,” reads the report.

Masilela also submitted that another sad part was that when arrests were made on corruption, it was only the small fish that was made scapegoats and targeted, leaving the head-honchos scot free. This was also a concern from Speaker in the House, Jabulani ‘Buy Cash’ Mabuza, who drew the attention of the MPs to recent reports, that there were individuals ‘labangabopheki’, as revealed by the Auditor General, Timothy Matsebula. Mabuza said there was need to disclose the names of those individuals, so that legally, action could be taken against them. The Speaker said as it was, people were making their own assumptions from such statements and unfortunately everyone was put in the same basket, because people did not know who these people were. “Why make such statements if the people referred to will not be disclosed. We need to know who these people are and if they have indeed committed acts of crime, they should face the law,” Mabuza said. Nhlambeni MP Manzi Zwane was concerned about the security of the AG, submitting that it was seemingly not a priority to government. He also raised a concern that the Office of the AG was not only deprived of independence, but was understaffed and as such, he could only do an audit in only nine schools out of over 200 across the country.

See also

There is rampant looting at ICC – MP

http://new.observer.org.sz/details.php?id=22136

 

Roman Catholic church grabs schools from community

Swaziland Democratic News, 5 March 2024.

SOURCE

Ezulwini: There is an outcry by residents of Ezulwini community and surrounding communities after the Roman Catholic Church came up with a new and uncompromising position of grabbing ownership of the Ezulwini Community Primary and High Schools.

For many years now, these schools have been led by local parents as they footed the bill of building the schools from scratch to finish and today, Roman priests are taking control and performing rituals on students at the school as they please.

It is said that recently the Roman Catholic Church hosted a mass service at the schools and also inscribed a cross on the foreheads of the school kids without first appraising the parents about these maneuvers.

One parent who sought to remain anonymous complained that since the arrival of a new head teacher at the primary school, their kids are not allowed to sing other gospel songs but only those in the Catholic hymn book like they are a Roman Catholic school and evidently, last week, a Catholic priest came to conduct mass at the school.

“What is annoying is that all these years we were building the school from our pockets without help from the church and it is very unimaginable that they are taking over. For a first we saw a grantee being introduced to be the chairman of the schools. All these years we have been electing committees of our choice but now, the school board has to be of Roman Catholic believers.”

It is reported that the school will soon be called Saint Peter School.

 

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Reporting of Swaziland Govt finances fails to meet international standards, auditor general states

Government finances in Swaziland (eSwatini) continue to be in a mess with widespread misreporting of assets and liabilities, the kingdom’s auditor general reported.

Timothy Matsebula listed a catalogue of errors that included bank balances that were misstated by nearly E125 million because government cash books did not tally with bank statements.

The figures were part of the auditor general’s annual report for the year ended 31 March 2019 just published. He described the reporting as ‘unacceptable’ and said it did not conform to international standards.

Matsebula reported, ‘Other bank balances were understated by E16,682,280.78 in aggregate; thus, reflecting an incorrect cash position of the Government of the Kingdom of Eswatini at year end.’

He also highlighted a bank balance that had nearly E1 billion IMF Special Drawings Rights had not been disclosed.

The auditor general found assets amounting to E1.9 million were incorrectly classified as liabilities in the Detailed Statement of Liabilities. ‘These bank balances were reported as overdrawn bank accounts whereas bank statements showed that the accounts had positive balances, as at the year end.’

Elsewhere, overstated liability account balances amounted to E403 million while understated liability account balances amounted to E87 million.

Matsebula also found there had been unauthorised over-expenditure of E845 million in recurrent expenditure budget. There was also unauthorised over-expenditure of E16 million in the capital expenditure budget.

Matsebula concluded, ‘I draw attention to the presentation and disclosures in the financial statements which reflect an unacceptable financial reporting framework. The current financial reporting practice does not conform to any internationally recognised financial reporting framework and does not present the Government Accounts (Financial Statements) fairly in some accounting areas.’

This is not the first time the auditor general has found the government accounts to be inadequate. Last year billions of emalangeni could not be accounted for. In his annual report for the 2018 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 reported then, ‘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.’

See also

Govt ministries broke law on spending

http://swazimedia.blogspot.co.uk/2018/03/govt-ministries-broke-law-on-spending.html

Govt ministries in financial mess

https://swazimedia.blogspot.com/2018/03/govt-ministries-in-financial-mess.html

Swaziland Auditor General fears fraud as govt pensions paid to the deceased

It looks as if the way elderly grants are distributed by the government in Swaziland / eSwatini is leading to theft and fraud, the kingdom’s Auditor General reported.

The Deputy Prime Minister’s Office is responsible for the grants (pensions). People aged 60 and over are entitled to E400 (US$30) per month. About 70,000 people are thought to receive the grants which often are the only income a family has.

Timothy Matsebula, the Auditor General, in his report for the year ending March 2018 said E1.7 million was unaccounted for. He said if a person failed to collect the quarterly grant twice in a row, social workers had to investigate to see if that person was still alive. These checks were not being carried out.

When the Auditor General’s office conducted its own survey it found many of the people receiving grants were in fact dead or unknown in their local community.

He also said elderly social grants amounting to E130,835.00 were collected by other people on behalf of those who had died.

He reported, ‘I am therefore concerned that the uncollected funds are susceptible to misappropriation, theft, and fraud.’

He added, ‘The collection of the grants was fraudulent as the rightful beneficiaries were deceased. I am worried that there could have been more unlawful collections since my audit was based on a sample of beneficiaries.’

The Auditor General also found that uncollected grants distributed through Eswatini Posts and Telecommunications Corporation (EPTC) and banks were not sent back to government at the end of each quarter. More than E7.8 million had not been returned.

He reported, ‘It concerns me that the unreturned amounts have a negative impact on the Government’s cash flow as the funds could have been used beneficially elsewhere. It is also highly probable that these funds were unnecessarily allocated to deceased and unknown beneficiaries.’

He added, ‘I am concerned that the accumulation of the funds in these accounts could lead to their loss through theft.’

As recently as November 2018 state radio in Swaziland broadcast that the grants could not be paid on time because the Swazi Government did not have the money.

In 2017, the National Strategy and Action Plan to End Violence in Swaziland: 2017 to 2022 reported more than 80 percent of women aged 60 and over and 70 percent of men lived in poverty.

See also

Swaziland has no cash to pay elderly pensions, Prime Minister says he will fly business class to save money

https://swazimedia.blogspot.com/2018/11/swaziland-has-no-cash-to-pay-elderly.html

 

Swazi Govt fails to pay elderly grants

https://swazimedia.blogspot.com/2017/11/swazi-govt-fails-to-pay-elderly-grants.html

 

8 in 10 Swazi elderly are in poverty

https://swazimedia.blogspot.com/2017/12/8-in-10-swazi-elderly-are-in-poverty.html

Swaziland Govt wage bill chaos as Auditor General reveals error and fraud

In his budget speech Neal Rijkenberg the Finance Minister of Swaziland / eSwatini stated that public service salaries had risen by 125 percent in the past 10 years and he threatened to cut the kingdom’s wage bill. He said the kingdom could not afford to pay cost of living salary adjustments (CoLA).

Now, the Swaziland Auditor General (AG) Timothy Matsebula in his annual report has revealed that the government has no clear idea how much money it is legitimately paying out in salaries. Matsebula reported in the year ending March 2018 the government overpaid its workers by E6.2 million and a further E1.9 million was paid to ‘ghost employees’ – that is workers who do not exist.

He also said that it was impossible to tell how many ghost workers there were in schools across Swaziland.

The AG reported the overpayments were made across a number of government departments. 

The AG stated there was a total loss from public servants of E3.44 million and E15.74 million in the financial years 2017 and 2018 respectively. The figure for 2018 included more than E6 million in unrecovered loans made to civil servants. 

The AG stated, ‘These include salary payment of “ghost employees”, overpayment of salaries, non-staggering of salaries for employees on long-term study leave, unrecovered reimbursement of salary and training costs from officers who have abandoned official training, and unrecovered loans. The salary payment of “ghost employees” comprises of payment of salaries for people who have resigned or exited the public service, employees who have not been reporting for work and/or employees who were suspended for a lengthy period.’

The AG said financial controls were ‘weak’ and risked ‘embezzlement and fraud’. He added, ‘ghost-employees or fictitious employees are included in the payroll system and continue being paid for an extended period of time until they are uncovered or may remain uncovered until retirement age’.

The AG also reported that at schools across Swaziland teachers were not regularly signing registers when collecting their salary advice slips and ‘this poses a risk as it makes it hard to see the presence of “ghost” employee(s)’. This means the number of ghost workers in Swaziland is not known. 

This chaos in government is going on at the same time that Finance Minister is threatening to cut the public sector salary bill. In his budget speech in February 2019 Finance Minister Rijkenberg said, ‘Our growing wage bill is placing insurmountable pressure on our budget and Government has been under immense strain to pay salaries due to the cash flow crisis.’

He added, ‘Given the state of the economy, it is not prudent or possible to budget for a CoLA in 2019/20, as the country simply cannot afford it.’

He said paying the salary increase would contribute to the kingdom’s debts. If debt increased, he said, ‘we will have no option but to cut the wage bill’. He did not give details but it would mean either cuts in salaries or job losses (or both).

Rijkenberg made his bold statement without knowing what the true public sector wage bill is in Swaziland. 

AG Matsebula also reported the Swaziland Government finances were in such a mess that billions of emalangeni could not be accounted for. 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. He stated this could be down to fraud or error.

The AG report is revealing the truth in Swaziland where King Mswati III rules as an absolute monarch and appoints members of the government and top public servants and where political parties are banned from taking part in elections. The kingdom is in chaos and nobody knows where the money is going. 

Public sector workers should not be blamed for the crisis.

Richard Rooney

See also

Billions unaccounted for in Swaziland Govt finances, Auditor General reports

https://swazimedia.blogspot.com/2019/03/billions-unaccounted-for-in-swaziland.html

 

Swaziland Finance Minister threatens public sector job cuts if workers don’t back his budget

https://swazimedia.blogspot.com/2019/03/swaziland-finance-minister-threatens.html

Gap between rich and poor in Swaziland continues to grow, Finance Minister reports

https://swazimedia.blogspot.com/2019/02/gap-between-rich-and-poor-in-swaziland.html 

Billions unaccounted for in Swaziland Govt finances, Auditor General reports

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

http://swazimedia.blogspot.co.uk/2018/03/govt-ministries-broke-law-on-spending.html

US$632 million error in govt accounts

https://swazimedia.blogspot.co.uk/2018/03/us632-million-error-in-govt-accounts.html

FRAUD AT SWAZI DEPUTY PM’s OFFICE

The Deputy Prime Minister’s Office in Swaziland is in a financial mess; money is given to those who do not deserve it and withheld from those who do, overtime payments have been made fraudulently and rents not collected.

This is contained in the annual report of the Auditor General.

The DPM Office oversees the kingdom’s national policy that supports effect delivery of Government services, ‘through a well-coordinated decentralized system with a special emphasis on a comprehensive social welfare system, gender mainstreaming, children issues as well as proactive disaster preparedness’, according to the report.

Disability grants

The report which covers the year ending March 2017 stated there are no working guidelines on how to award disability grants yet the DPM’s Office gave out of E12.46 million (about US$1 million) to the three years ending March 2016.

The Auditor General reported Section 4.3 (iv) of the National Disability Policy of 2013 required Government to develop guidelines on how people with disabilities, who live below the poverty line, will access funds in various development schemes, including the assessment criteria to qualify for support from the grant. ‘Presently, eligibility assessment and screening of disabled citizens are conducted by Social Workers,’ the report stated.

The Auditor General reported, ‘However, without guidelines, deserving disabled people may be omitted from the list of beneficiaries whilst undeserving beneficiaries may receive disability grants.’

It added, ‘Guidelines should include an independent assessment of the disabled citizens’ health condition, by a competent medical specialist, so that only eligible persons benefit from the grant.’

The Auditor General reported E228,720 was paid to non-deserving beneficiaries without the approval of Social Workers.   

There are also weak internal controls in the management of Welfare Grants. ‘The payment system was able to accept beneficiaries straight from the communities without involving Social Welfare Officers, yet the regulations require that Social Welfare Officers should authorise eligible beneficiaries,’ the report stated.

Audit of Payroll

The Auditor General found a number of irregularities with salary payments. An amount of E16,507.71 was wrongfully paid as overtime allowances to two ‘undeserving’ accounting officers who allegedly performed overtime duties at the Trade Fair in 2014. ‘The original request did not bear the names of the two accounting officers whilst the one attached to their payments had their names fraudulently inserted,’ the report stated. Names were also ‘fraudulently inserted’ in a list of payments ‘which had the endorsement of the Principal Secretary’.

The report also stated, ‘The supervisors of the Trade Fair duties, at the Deputy Prime Minister’s Office, were unaware about duties that would have required accounting officers to work overtime during the course of the Trade Fair in 2014.’

The Auditor General stated, ‘I am concerned that Government’s control measures were intentionally flouted.’

Rent deduction and housing allowance

It seemed some officers who lived in Government houses did not pay rent which by regulation should be deducted from salaries. Some who lived in private accommodation did not receive due allowances. This affected people in a number of grades, including social welfare officer, messenger, maid and labourer.

The Auditor General stated, ‘I raised my concern to the Controlling Officer that rentals due to government for the housing benefit may not have been collected, thus subjecting Government to a loss and furthermore, that Government may have been deprived of tax revenue in respect of the housing benefit, in cases where the officers were housed by Government.’

Massive financial mismanagement

The financial mismanagement at the DPM’s Office are not unique. The Auditor General reported the Swaziland Government’s bank accounts had been miscalculated by more than E7.5 billion (US$632.1 million).

The Auditor general reported ‘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.’

A string of government departments and agencies have broken the law by spending tens of millions of emalangeni on vehicles and transport running costs without authority.

The Auditor General’s report shows the Prime Minister’s Office overspent its budget by E2.3 million (or 261 percent); the National Commissioner of Police overspent by E74.5 million (149 percent), Correctional Services E19.6 million (199 percent), Defence E26.4 million (46 percent).

The Auditor General stated, ‘Over expenditures beyond the budget provision and beyond amounts that have been appropriated by Parliament are illegal and clearly violate the Appropriation Act as well as Financial and Accounting instruction 0202 (ii).’

See also

US$632 MILLION ERROR IN GOVT ACCOUNTS

https://swazimedia.blogspot.co.uk/2018/03/us632-million-error-in-govt-accounts.html

 

GOVT BROKE LAW ON SPENDING

https://swazimedia.blogspot.co.uk/2018/03/govt-ministries-broke-law-on-spending.html

 

GOVT MINISTRIES IN FINANCIAL MESS

http://swazimedia.blogspot.co.uk/2018/03/govt-ministries-in-financial-mess.html

50/50 CELEBRATION BUSTS BUDGET

The Swaziland Government has bought a fleet of luxury BMW cars worth US$7.5 million ahead of the King’s 50/50 celebrations.

The cost of the cars alone bust the US$1.7 million budget the government allowed itself for the festivities to mark King Mswati III’s 50^th birthday and the 50^th anniversary of Swaziland’s independence from Great Britain. The Taiwanese Government has donated an extra US$1.3 million but that still leaves Swaziland US$4.5 million short on the cost of the cars alone.

The Times Sunday, an independent newspaper in Swaziland where King Mswati rules as sub-Saharan Africa’s last absolute monarch, reported (11 March 2018) the cars would be used by the Close Protection Unit which is responsible for protecting dignitaries.

The newspaper did not say how many vehicles were purchased. It said the Ministry of Public Works and Transport announced the E89 million purchase in a report tabled in parliament last week. It said Lindiwe Dlamini, Minister of Public Works and Transport, had not responded to questions it sent to her regarding the purchase.

The cars were bought through the government’s Central Transport Administration (CTA) which was severely criticised in the Auditor General’s most recent report for illegally spending millions of emalangeni and not keeping proper financial records. 

The purchase raises questions about the lack of financial control around the 50/50 celebrations. In 2008 the budget for the 40/40 celebrations overran by E32.6 million (about US$5 million at the then exchange rate). E17 million was budgeted but it ended up costing at least E50.2 million. The exact figure is still uncertain. The total cost of the entire 40/40 celebrations was E39 million less than the cost of the BMW vehicles this year.

In 2010 the Auditor General reported that E1,839,934 was spent illegally because capital release warrants had not been made. Salary overtime claims from civil servants amounted to E5 million. The Weekend Observer newspaper in Swaziland reported (18 December 2010), ‘Civil servants who had access to claim overtime pay in their various workstations took advantage of the lax arrangements at the celebrations committee to drain money.’

More than E1 million was spent on providing 14 portable toilets (E71,428 each) for the three-day event. The Weekend Observer (30 August 2008) reported other sanitary expenses,  ‘E173,000 is needed for hiring 10 of 10,000 litre water tanks over the same period. E94,500 is required for 100 bales of toilet paper, whilst E5,500 is needed for 10 of 25 litre liquid soap. For five boxes of sunlight soap E7,100 is sought, while E7,900 is required for detergents, amongst other things.’ It estimated more than E2 million was spent in total on sanitary arrangements. 

A search by Swazi Media Commentary at the time revealed that that portable toilets could be hired from neighbouring South Africa at a cost starting at about E500 (US$70 at the then exchange rate) a day.

See also

GOVT MINISTRIES BROKE LAW ON SPENDING

http://swazimedia.blogspot.co.uk/2018/03/govt-ministries-broke-law-on-spending.html

 

POLICE FORCED TO PAY FOR 50/50 JUBILEE

https://swazimedia.blogspot.co.uk/2018/03/police-forced-to-pay-for-5050-jubilee.html

 

CALL FOR CASH TO FUND 50/50 CELEBRATIONS

http://swazimedia.blogspot.co.uk/2018/03/5050-celebration-cash-drive-starts.html

50/50: LEARN LESSON OF PAST DISASTER

https://swazimedia.blogspot.co.uk/2018/02/5050-learn-lesson-of-past-disaster.html

GOVT MINISTRIES BROKE LAW ON SPENDING

The offices of the Prime Minister, National Commissioner of Police, Defence Department and Correctional Services in Swaziland are among a string of government departments and agencies that have broken the law by spending tens of millions of emalangeni on vehicles and transport running costs without authority.

An Auditor General’s report has uncovered widespread malpractice that includes fraud and corruption.

The report shows the Prime Minister’s Office overspent its budget by E2.3 million (or 261 percent); the National Commissioner of Police overspent by E74.5 million (149 percent), Correctional Services E19.6 million (199 percent) and Defence E26.4 million (46 percent).

Other big over-spenders were Home Affairs (264 percent), Health (178 percent) and the Strategic Oil Reserve Fund (120 percent).

Muziwandile Dlamini, Acting Auditor General in the annual report for year ending 31 March 2017, said, ‘Over expenditures beyond the budget provision and beyond amounts that have been appropriated by Parliament are illegal and clearly violate the Appropriation Act as well as Financial and Accounting instruction 0202 (ii).’

At the core of the problem is the Central Transport Administration (CTA) whose main functions are to purchase, maintain and dispose of government vehicles and other related equipment as well as to provide fuel for government vehicles. It also provides vehicles on short-term hire to government ministries and departments.

The Auditor General’s report said there was poor record keeping and rules and regulations were often ignored. ‘As a result, risks such as theft of fuel and vehicle maintenance parts, overspending on the budget, funding of authorized expenditure and fictitious transactions were increased,’ the report stated.

The report highlighted a number of cases of malpractice. In the Ministry of Tourism and Environmental Affairs two vehicles had been taken out of service in January 2016. The report stated, ‘However, both vehicles mysteriously continued to incur charges [for fuel and maintenance] up to 1 September 2016. I further notified the Controlling Officer that the charges were monthly and were of the same amount each month.’ The costs totalled E46,268.

The report added, ‘I am therefore, very concerned that as it stands, I am not convinced that the costs incurred were justified and hence cannot rule out that the costs incurred were for stolen fuel and vehicle maintenance parts, unauthorized vehicles, abused vehicles or fictitious transactions.  The Controlling Officer neglected his duty to ensure regular reconciliation of vehicle records with CTA charges in order to identify and correct anomalies promptly.’

At the Ministry of Defence it was discovered that one Isuzu vehicle was refuelled with 600 litres at a single fill although its tank had a maximum capacity of 70 litres.  

In an audit of the CTA Trading Account the Auditor General found  E528 million had been spent in 2016-2017 without an approved budget. ‘The Central Transport Administration has been incurring expenditure through requests made by the Ministry of Public Works and Transport to the Ministry of Finance, which then releases funds without issuing Warrants.  

 

‘The budget to operate the trading account was also not sanctioned by Parliament, through an appropriation Act, and it was also not included in the budget of the Ministry of Public Works and Transport, making it difficult to hold the CTA management accountable for a budget that they do not control.  This may result in Government spending more money on items that are not Government priority.’

The Auditor General stated, ‘There was no way the CTA could be evaluated, in terms of financial performance, to determine whether the CTA provides returns on Government’s investment, from its trading activities or whether it is becoming a financial drain on public funds.’

During the audit it was discovered that a total of 1.75 million litres of fuel, valued at E19.53 million were not accounted for by CTA. The Auditor General reported, ‘I am concerned that by its nature, fuel is an attractive item of stores which may be subject to abuse or theft if not properly accounted for and controlled.’

The CTA has been riddled with corruption for years. In 2013 former General Transport Manager Polycarp Dlamini was sentenced to seven years in jail for his role in defrauding the department around E11 million.

In December 2012, Ntuthuko Dlamini, Minister of Public Works and Transport, told parliament that close to E3 billion of taxpayers’ money went into investigating corruption at the CTA dating back to the 1990s. The Times of Swaziland reported, ‘He said ever since the problems of corruption surfaced at CTA, many specialists were hired over the years to do forensic audits, but, unfortunately, crucial recommendations were never implemented.’

In August 2013 when CTA was reported to be running a deficit of E400 million Dlamini announced it would be converted into a parastatal like the Swaziland Posts and Telecommunications Corporation (SPTC) and Swaziland Electricity Company (SEC). It would be led by a Chief Executive Officer and also have a Chief Financial Officer.

The Times reported, ‘Such a transformation is envisaged to bring about sweeping changes expected to eliminate the many misdeeds that went on at the CTA, including the disciplinary of wayward staff.’

The parastatal was to be called Central Transport Organisation. An Act of Parliament was gazetted in 2013 to allow this to happen, but to date the change has not gone through.

See also

SWAZILAND ‘RIDDLED WITH CORRUPTION’

https://swazimedia.blogspot.co.uk/2017/06/swaziland-riddled-with-corruption.html

 

GOVT MINISTRIES IN FINANCIAL MESS

https://swazimedia.blogspot.co.uk/2018/03/govt-ministries-in-financial-mess.html

GOVT MINISTRIES IN FINANCIAL MESS

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

https://swazimedia.blogspot.co.uk/2018/03/swazi-budget-tale-of-woes.html

SWAZI POLITICIANS PAY TO BE REVIEWED

https://swazimedia.blogspot.co.uk/2018/03/swazi-politicians-pay-to-be-reviewed.html