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Showing posts with label Fraud. Show all posts
Showing posts with label Fraud. Show all posts

Friday, 25 November 2022

Swaziland Newsletter No. 754 – 25 November 2022

 

Swaziland Newsletter No. 754 – 25 November 2022

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.

 

People go to war when diplomacy fails - SADC chairperson

By Thokozani Mazibuko, eSwatini News, 19 November 2022

SOURCE

 

LOBAMBA: The new South African Development Community (SADC) Organ on Politics, Defence and Security Cooperation (Troika), chairperson has said people go to war when diplomacy fails.

He made this statement during his courtesy visit to His Majesty King Mswati III yesterday at Mandvulo Hall. Namibian President Hage G Geingob advised the King and the people of Eswatini that the solution to the political turbulence in the country and the rest of the Southern African region can be sought only through dialogue. President Geingob first shared the 22 years of suffering his country endured and revealed that it was only through dialogue and the support of other countries that peace was restored.

The president noted that it was not Eswatini alone which was faced with a political crisis, but also the Democratic Republic of Congo, Republic of Mozambique and Lesotho.“I am not here to discuss political matters, but I am here on a courtesy visit to the King as you all know that I am new in the office of Chairperson of the SADC Troika Organ.

“I am still going to visit other member States and then soon the date of the Troika meeting will be set, where we will discuss all the afflictions of our member States including Eswatini. After those discussions we will then invite all parties concerned to be also engaged, as we look forward in solving our differences soon,” said the president. He went on to emphasise that SADC countries do not need war but to solve their problems amicably through dialogue as it was time to end the suffering among the people. His Majesty King Mswati III and SADC Troika Chairperson and Namibia President Geingob both reiterated the need for the promotion of peace and stability in the SADC region.

The King informed the media present that he had briefed the SADC chairperson on the situation in Eswatini. “I have briefed the president about the disturbances with regards to security that we have been experiencing in Eswatini. It is also important to strengthen relations between both States (Namibia and Eswatini) as we are experiencing numerous challenges.

“It is of importance to ensure that there is an inter exchange of tourists, which will provide job opportunities as we still have a lot to do in improving conditions of the lifestyle of the people as we are still advocating and committed in achieving the First World status for both States,” said the King.

Their discussions also focused and touched on the restoration of peace and resolution of conflicts through peaceful dialogue. It was a one-day working visit for the SADC president to the Kingdom of Eswatini.

Worth noting is that the working visit is informed by the commitment of President Geingob to implement decisions of the SADC Organ on Politics, Defence and Security Cooperation. The SADC Organ Summit that was held on August 16, 2022 in the Democratic Republic of Congo, at which President Geingob assumed the role of Chairperson of the Organ, reinforced the need for the SADC Organ to work for a peaceful and stable SADC region.

Ever since the political unrest last year between June/July, political formations have been pressurising government and the King to have a national dialogue to solve the political crisis in the country. It all began when pro-democratic groups called for an elected prime minister (PM) after the passing away of the late Prime Minister Mandvulo Dlamini. Political formations resolved to deliver petitions to voice out their discontent at the Tinkhundla System of Government.

The then acting PM, Themba Masuku banned the delivery of petitions which he recently told senators that government took that decision after there were elements of violence and that children as young as seven were made to carry placards. Masuku said because of that, government had a responsibility to see to it that the rights of children were protected.

 

We cannot vote out King – PM

By Mhlonishwa Motsa, Times Sunday (eSwatini), 20 November 2022

SOURCE

 

LOZITHA: Prime Minister (PM) Cleopas Sipho Dlamini has said the position of His Majesty King Mswati III was not up for a vote.

The PM said by virtue of being a leader of the country under a monarchy, the King was exonerated from any vote of approval by anyone. He echoed Reverend Madudu Mabuza’s sermon, where he mentioned that the King was respected by God. “Rev Mabuza, your majesty mentioned that the position of a King is not a voted position but one that was there before anything else. The monarchy is not made by the constitution, but the Constitution recognises the position of Ingwenyama as the King.

Relies on Constitution

“This is not similar to our positions with the DPM which relies on the Constitution. The position of a King is the fabric of the nation and in the event the people want to change the constitution, they go back to the King for an endorsement of the repeal. In other words, we cannot vote out the king or suspend his position,” said Dlamini. The PM further stated that emaSwati were a peculiar nation and were different from any other nation in the world. He said the prayer service was one of the things that made the nation. He added that the service was an example of how the nation feared God and respected culture and tradition as it precedes the resumption of the traditional calendar.

 

King MisuZulu sucked into eSwatini’s domestic turmoil

By Sandile Motha, Sunday World (South Africa), 20 November 2022

SOURCE

 

A few days after AmaZulu king MisuZulu kaZwelithini jetted off to the Fifa World Cup in Qatar, the king finds himself dragged into political turmoil plaguing the landlocked country of Eswatini, his mother’s ancestral land.

A long-standing feud is raging in Eswatini, with pro-democracy forces fighting King Mswati lll’s autocratic regime and insisting the AmaZulu king should be stripped of the benefits he enjoys in Eswatini.

It has since emerged the citizens of Eswatini are footing the bill for MisuZulu’s security detail.

The People’s United Democratic Movement (Pudemo) – a key political grouping advocating for the fall of king Mswati’s monarchy – accuse the king of plundering the country’s coffers and resources, while 60% of the population is living in abject poverty.

“Our problems have been compounded by the coronation of the Zulu King MisuZulu as the rightful heir to the throne.

“King MisuZulu is King Mswati’s nephew and the Eswatini king has developed a more direct interest in the affairs of the Zulu royal family,” said Spuku Phakathi, the Pudemo chairperson in KwaZulu-Natal.

“We are aware that some of the security detail of the Zulu king is now sponsored by king Mswati, and this is worrisome because we know it is done using our taxpayers’ money while our people are poor.

“The Eswatini royal family business is used to milk and loot poor citizens of their hard-earned money through taxes and levies to fund the opulent lifestyle of the king and the royal family.”

Phakathi said their struggle should not be misconstrued as a war against the AmaZulu nation and their king, saying the AmaZulu king had merely been caught up in the firing line of their struggle against Mswati’s regime.

King Mswati III is Africa’s last absolute monarch, having been in power since 1986.

He is the brother of King MisuZulu’s late mother, Queen Mantfombi Dlamini-Zulu, who was the late AmaZulu king Zwelithini kaBhekuZulu’s third wife.

The Swaziland Solidarity Network, an organisation at the forefront of opposing the Eswatini governing system, known as tinkhundla, based on traditional administration headed by Mswati, also questioned the granting of state security to MisuZulu’s estranged wife, Queen Nozizwe Molela, in Eswatini.

“The people of Eswatini are concerned that even king MisuZulu’s second wife is being granted state security. This is at the expense of the people of Eswatini,” said organisation’s spokesperson Lucky Lukhele.

The issue of King MisuZulu’s security while seeking refuge in Eswatini broke last year when he was named heir to the throne, succeeding his father, the late King Zwelithini.

This led to other factions of the AmaZulu royal house challenging his legitimacy with the KwaZulu-Natal provincial government deciding not to release benefits to him until the kingship question was resolved.

Mswati subsequently came on board to supply his nephew with security amid safety concerns, but the KwaZulu-Natal government then made a U-turn and footed the bill for the king’ and his consorts’ upkeep.

For the 2022/23 financial year, the AmaZulu royal household has been allocated a budget of R67-million by the provincial KZN government.

Prince Thulani Zulu, King MisuZulu’s spokesperson, said when the king was in Eswatini as a dignitary, he was afforded state security. “Like anyone who falls in the category of the king, state security is granted to them when visiting foreign countries.

“But as far as I know the king’s security is taken care of by the South African state. It would be against normal protocol if security forces from another country were assigned to the king in a foreign land,” he said.

This week, pro-democracy forces in Eswatini embarked on rolling mass action calling for regime change and the release of all political prisoners.

In response to a wave of sporadic protests and to clamp down on political activism, King Mswati introduced a 60-day detention without trial proclamation.

The protests have left scores of people dead while other political activists have fled the country to seek refuge in neighbouring countries.

 

Hailstorms shatter homesteads

By Relief Web, 22 November 2022

SOURCE

 

Eswatini Meteorology department's weather forecast for the 5th November was isolated thundershowers and rain showers being warm to hot in the Lowveld. A hailstorm with strong winds and hail stones as big as a child's fist was experienced on Saturday 5 November 2022 night, affecting mostly Nsingizini and Nsubane communities under Hosea and Somntongo in the Shiselweni region. The affected communities are in the Lowveld of the country.

An estimated 1,058 people (213 households) were affected by the storm with some families losing their roofs which were blown away or roofing sheets riddled by the hailstones. Window glasses were also shattered and household furniture, food, and other documents soaked in water. School uniforms and books for school pupils were not spared. The affected people were exposed to more danger as they had to sleep in that day in the yet-to-be-fixed structures as no support had been rendered yet.

Baphalali Eswatini Red Cross Society (BERCS) mobilized and deployed four volunteers and two officers who conducted the rapid household assessment through interpersonal interviews with the household heads on the 6th November 2022. The standard rapid assessment tool was used. The National Society also provided psychological support to the distraught communities. On 7th November, a joint assessment was further done with National Disaster Management Agency (NDMA), where available response material was 16 tarpaulins and 30 food parcels were disbursed on the subsequent days.

Scope and Scale

From the joint assessment conducted with NDMA, the community reiterated the need for support on shelter, food, and school materials destroyed. The communities are subsistent farmers who thrive on agricultural activities such as crops and poultry. Their economic status categorizes them as the most vulnerable, which means they may struggle to recover from the impact of the storm.

Assessments further revealed that food items were destroyed by the water as roofs have now become porous following impact of the hailstones. According to the IPC Eswatini Acute Food Insecurity analysis, populations in Shiselweni are in IPC 3 (crisis). Households which already food insecure would have their situation exacerbated thus a need to support them to meet food needs. Moreover, other household items such as furniture, school books, and uniforms were not spared. High vulnerability entails that the household's important documents were also not spared.

The affected communities have some vulnerabilities including child-headed households, the elderly, children under five years and people suffering from chronic diseases that pull the limited resources. Communities affected by hailstorms in the past received support on shelter but not all the losses are compensated. Some who lost their livelihoods could not be assisted due to limited available resources. For example, commercial vegetable farmers need more investment to support them and also field crop support has been less supported in the past.

 

eSwatini records E55m loss to fraud

By Slindzelwe Nxumalo, eSwatini Observer, 23 November 2022

SOURCE

 

National Commissioner of Police William Dlamini has disclosed that Eswatini has lost E55 million through fraud.

Dlamini, who was represented by Deputy National Commissioner Mumcy Dlamini said available statistics showed that over E55 million was lost through fraud in the period spanning from October, 2021 to September which indicated a 0.5 per cent increase when compared to the previous year.

Dlamini said this during the launch of the International Fraud Awareness Week Launch themed ‘Think before you Click’, held at the Eswatini Bank head offices in Mbabane yesterday. He said without doubt, fraud was a scourge that was constantly affecting the financial stability of individuals and businesses in the country.

‘The rerun theme "Think Before You Click" encourages thoughtfulness, soberness and consciousness, and when transacting online,” he said.

The national commissioner stated that the belief was that as more people moved to digital platforms for day-to-day transactions such as the payment of utility bills, chances of users lowering their guard and clicking right away increases, opening a doorway for cyber fraudsters to their cash and savings.

“Therefore, people should always be mindful and alert that one click can result in serious money losses and because of the strong existing link between fraud and cybercrime nowadays, a huge chunk of fraud crimes committed locally have evolved to cyber frauds which can be tracked regionally,” he said.

He added that the Eswatini Bankers Association (EBA) and all stakeholders should be lauded for their resolve and commitment in conducting anti-fraud awareness and education to help reduce the impact of the phenomenon in the country.

“Practical strategies and interventions that have been employed through co-operation and collaboration are evidence that you have consistently championed this campaign,’ he said.

He further added that cyber related fraud scams that were most predominant in the country included ATM Fraud where the victims PIN and debit or credit card numbers were stolen and used to withdraw money from ATMs without authorisation.

“More than E400 000 was lost from 45 cases reported under this scam and over 141 cases of this scam have reported between the period of October, 2021 and September, 2022 on internet fraud,” she said.

 

King Mswati’s forces in Swaziland attack public transport workers during strike action

by Pavan Kulkarni, Peoples Dispatch, 21 November 2022

SOURCE

 

Several public transport workers were shot, abducted, and tortured by the army and the police during a strike action on November 15 and 16 in the Kingdom of Swaziland. The strike followed another two-day strike on November 10 and 11.

Condemning “the brutal attacks by the armed forces opening fire on bus drivers,” International Transport Workers’ Federation (ITF) general secretary Stephen Cotton said on November 17, “Murders of transport workers have increased over the past year.” 

He said that the ITF will hold the authorities of this southern African country, which is the continent’s last absolute monarchy, “accountable to its actions at all international levels including the International Labour Organization (ILO).”

Despite the police violence, ITF’s national affiliate, the Swaziland Transport Communication and Allied Workers Union (SWATCAWU), successfully brought most cities and towns in the kingdom to halt with their strike action. The union represents over 3,000 of the around 5,000 public transport workers in the small land-locked country, with a little over a million people.

“Even the sugar-mills owned by the King, which is the largest employer in Swaziland after the government, had to be shut down because of our strike. The mills are a key source of the monarch’s income. We know we have delivered a blow to the regime when we shut these mills,” Sticks Nkambule, general secretary of SWATCAWU, told Peoples Dispatch. 

Times of Swaziland reported that buses remained parked and most businesses remained shuttered due to the strike on November 15 and 16. The usually busy streets of capital Mbabane, commercial hub Manzini, and other cities and towns wore a deserted look – except for instances where security forces attacked the striking workers. 

Many of the larger businesses that were brought to a halt by the strike are owned by King Mswati III and his cronies, who control most of Swaziland’s economy and run it for the benefit of the royal family, Sticks points out. 

The monarch’s indulgences, including palaces, private jets, a fleet of Rolls Royce cars and extravagant celebrations and parties, have become an eye-sore in the country where up to 70% of the population survives on less than two dollars a day. Wages of public transport workers, who are government employees, start at R2,400, which barely adds up to USD 4.5 per day. 

Along with demanding an increase in wages and better regulation of the sector, the public transport workers are also insisting on the release of incarcerated pro-democracy members of parliament (MPs) Mduduzi Bacede Mabuza and Mthandeni Dube.

The MPs were arrested last year after they came out in support of the demand for a multi-party democracy as put forth in the mass-demonstrations and rallies that for the first time spread across rural areas, largely thought to be loyal to the King.   

When these peaceful rallies that had unprecedentedly spread across Swaziland faced a violent crackdown by the army and police, an insurrection erupted in the industrial areas around the cities, which have long been a hotbed of anti-monarchist sentiment.

Mass attacks on properties and businesses owned by the King and his cronies began by the end of June last year, whereupon the king briefly fled the country, returning only in mid-July when the insurrection had been put down by the army which killed over 70 and injured hundreds. 

In the several protests and strikes witnessed since – be it by students demanding scholarships to access education or public workers and civil servants demanding living wages and decent working conditions – “Mswati must fall!” became a common slogan across Swaziland. 

King Mswati III appoints the prime minister and other ministers of the cabinet, as well as the top jurists, 2/3rds of the upper house of the parliament, and 12% of the lower house. No political parties, all of which are banned, are allowed to participate in the “elections” for the remaining seats in the lower house. Only individuals approved by the King’s local chiefs can contest these seats.

Mabuza and Dube were two MPs within this undemocratic setup who however rose to popularity after taking the side of the masses against the monarch by calling for democratization of Swaziland.

The demand for multi-party democracy and the release of political prisoners including the incarcerated MPs has consistently been raised alongside the different economic demands put forward in the demonstrations and industrial actions by different groups.   

These political demands are not incidental but central, Sticks reiterates. “If the MPs are not released during their next hearing in court in December, we will paralyze the state with another strike,” he said.

The first day of the transport workers’ latest strike was intentionally scheduled to coincide with the court hearing of the MPs on November 15. Deputy chairperson of SWATACAWU in Manzini, Mbhekeni Dlamini, along with other union members, were headed to the court in Mbabane to express solidarity with the MPs on trial. 

Just before reaching Mbabane, they were confronted by a group of armed security personnel who threatened to shoot if they did not return home. “We were not even marching or shouting slogans. We were only walking in our union T-shirts. The government had said only a day ago confidently that November 15 will be a normal day. And yet, the security forces were behaving as if there was a curfew,” Mbhekeni told Peoples Dispatch. “When we were walking back home, we were suddenly attacked by heavily armed policemen.”   

The policemen allegedly fired shots and chased those who fled, while Mbhekeni, who was held at gunpoint, was forced down into the leg-space of the backseat of a private SUV with a South African number plate. Held under boots with his face covered, he was kicked all the way as the vehicle was driven to a jungle on the outskirts of Manzini, where he was lashed repeatedly with a leather whip.

“They were seven. They took turns one after another. One kept beating and lashing me till he got tired and handed over to another. It lasted for two hours. Then they dumped me in the bush and drove away,” Mbhekeni recalled.

“I was dizzy, in too much pain – did not know where I was. A passerby found me and asked what happened. I told I was kidnapped and tortured by the police. He helped me out. We made a phone call to my comrades who came to pick me up in a car.”  

At the Raleigh Fitkin Memorial Hospital in Manzini, where he was admitted for treatment, he found that his comrades who had tried to flee the abduction attempt by the policemen were also later admitted in a wounded state.

“There are policemen in civil clothes roaming the corridors outside. They are keeping a constant eye on who comes to visit us,” he said on November 16, speaking on phone from the hospital ward where he was admitted. Nevertheless, he added, “I have been receiving many visits from my comrades,” reiterating that the transport workers are not intimidated.

But the regime imposes a high cost on those who dare. “I am a bus driver. They have dislocated my elbow. I cannot drive for at least one month now,” Mbhekeni said, adding that he doesn’t know how he will make ends meet. “I only know that I will keep on fighting until all my comrades are freed from prison, until all Swazi people are freed from the monarchy.”

The workers calling for the overthrow of the monarchy are not necessarily motivated by a political ideology, explains Sticks. “It is because they understand that the monarchy is an economic liability to them. They understand that so long as the monarchy exists, they will never secure decent wages and labor rights. That is why they are willing to fight for democracy and make all sacrifices necessary.” 

At least two protesters were reportedly shot that day. The Deputy Prime Minister Themba Masuku, however, said on November 15, “We note that today was generally peaceful, despite a few skirmishes as a result of provocation from those few individuals who decided not to heed the Government’s pronouncement about the illegal protest march and that no one should engage in it.”

“His Majesty’s Government would particularly like to acknowledge the role played by State security officers in maintaining peace, the rule of law and order across the country, despite several attempts by small groups of people to disrupt operations,” he added.

Many more transport workers had been shot during the earlier strike on November 10. Sticks explained that while the November 15 strike had been planned in advance, the strike action on November 10 was not.

After “nothing substantial came out of the commissions set up in October by the government,” which was forced to the negotiating table when the strike by public transport workers had gone on for two weeks last month, the union had decided to strike again on November 15.

“To disrupt our planned strike on the 15th, the police arrested five of our key activists on November 9,” he said. These activists had earlier complained to the police that registered transport workers were being undercut by private vehicles illegally ferrying customers. “But the police did not act. So the union had intervened to stop this practice,” he added.

The police painted this intervention as an offense, and the five activists were in and out of court for some time when suddenly, “less than a week before the planned strike, the court handed them into police custody. We knew the purpose was to disrupt the oncoming strike. So we struck the very next day on November 10, demanding their release. And we succeeded in securing their release on November 11.”

This success came at a cost. Several workers were shot and injured by the army and the police during the agitation on November 10, which continued into the next day. 

The Swaziland Youth Congress (SWAYOCO) said in a statement on November 11, “We celebrate the bravery of this important sector of society, who despite being the most downtrodden and marginalized, are always able to defend their own.” 

“[W]hen one of their own is unjustly incarcerated, SWATCAWU is their first and last line of defense. This is something we must aspire to make a culture in the Mass Democratic Movement,” it added. “SWATCAWU membership braved and held fort even when the military was deployed into the streets. They stood firm on their demands even when the state’s security forces used live ammunition.”

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Tuesday, 2 April 2019

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
Swazi Govt fails to pay elderly grants
8 in 10 Swazi elderly are in poverty

Tuesday, 12 March 2019

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
US$632 million error in govt accounts

Tuesday, 13 November 2018

Tens of millions lost to banking fraud in Swaziland, but outstripped by Government corruption

Swaziland / Eswatini lost E30 million from the economy because of fraud during the past year, the kingdom’s national police Deputy Commissioner Mumcy Dlamini said.

She told an event for International Fraud Awareness week on Monday (12 November 2018) this was mainly connected to ‘banking sector business’.

She said fraudulent activities involve electronic fund transfers and false banking instructions.

However, she did not reveal the extent of fraud within the public sector which far outstrips that in private business. Earlier this year the Swaziland Auditor General exposed widespread financial irregularities across many government ministries. 

Acting Auditor General Muziwandile Dlamini said in an annual report that financial accounts were incomplete, billions of emalangeni were unaccounted for and laid-down rules, guidelines and procedures were ignored. The offices of the Prime Minister, National Commissioner of Police, Defence Department and Correctional Services were among a string of government departments and agencies that broke the law by spending tens of millions of emalangeni on vehicles and transport running costs without authority

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 detailed inconsistencies throughout government, including:

Disability payments went to people who did not qualify and those who were entitled were not getting them because the DPM’s Office had 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. Eligibility assessment and screening of disabled citizens was 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 was 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 had lost E1.04 million paying salaries for four immigration officers who had 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 had 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

Fraud at Deputy Prime Minister’s Office
Govt ministries broke law on spending
Swaziland ‘riddled with corruption’
https://swazimedia.blogspot.co.uk/2017/06/swaziland-riddled-with-corruption.html

Tuesday, 20 March 2018

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
GOVT BROKE LAW ON SPENDING
 
GOVT MINISTRIES IN FINANCIAL MESS
http://swazimedia.blogspot.co.uk/2018/03/govt-ministries-in-financial-mess.html

Tuesday, 9 May 2017

SWAZI GOVERNMENT FUEL SCANDAL

A government vehicle in Swaziland used 608 litres of diesel in one day and another 743 litres the day after.

This was one of the scandals unearthed in a report to the Swazi parliament. The Isuzu Double cab 4x4 was said to have been filled up with at least 500 litres a day on many other occasions. About 50 vehicles are said to have been filled up in the same way, the Swazi Observer reported on Thursday (4 May 2017).

This was revealed in Parliament during a sitting of the Public Accounts Committee (PAC), which investigates how government ministries spend state funds. 

The Isuzu was under the control of the Ministry for Tinkhundla Administration.

The committee was also told that the Ministry of National Defence and Security had spent E143 million (US$10.6 million) on fuel during the 2015/2016 financial year when it was budgeted for E58 million.

PAC Chairperson Thuli Dladla said there was something grossly wrong with the control of government vehicles. She said this was happening in almost all the government ministries. 

See also

MINISTER LIFTS LID ON CURRUPTION
SWAZI PM’s LAND SCAM RESURFACES
http://swazimedia.blogspot.com/2015/05/swazi-pms-land-scam-resurfaces.html