Swazi Media Commentary: fiscal transparency report

Showing posts with label fiscal transparency report. Show all posts

Tuesday, 30 January 2018

KINGDOM GETS 3/100 ON BUDGET OPENNESS

Swaziland scored a mere three points out of 100 in a global review of its budget transparency.

The kingdom ruled by King Mswati III as sub-Saharan Africa’s last absolute monarch received zero points in a section on public participation as there were no opportunities for the public to engage in budget processes.

The scores are revealed in the 2017 Transparency Open Budget Survey produced by the International Budget Partnership (IBP).

While Swaziland scored three points, neighbouring South Africa scored 89.

In an 80-page report IBP revealed that the Swaziland legislature provides weak oversight of the budget. In Swaziland political parties are banned from taking part in elections and the Prime Minister, Cabinet and top judges and public servants are all chosen by the King.

IBP said the Swazi parliament was unable to discuss the budget properly because it was not provided with sufficient information. It said the government’s budget proposal should be available two months before the start of the budget year.

The IBP collaborates with civil society around the world to use budget analysis and advocacy as a tool to improve effective governance and reduce poverty.

This is not the first time that budget transparency in Swaziland has been criticised. The United States State Department in its annual Fiscal Transparency Report regularly points out the kingdom’s deficiencies. In its 2017 report it said, ‘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.’

Monday, 29 January 2018

GOVT BREAKS OWN LAW ON SPENDING

The Swazi Government ignores the law when spending nearly E10billion (US$840million) of public money buying goods and services, according to the Swaziland Public Procurement Regulatory Agency (SPPRA).

SPPRA Acting Chief Executive Officer (CEO) Musa Sikhondze said government did not stick to rules laid down in the Public Procurement Act of 2011 when it came to tendering.

He told a meeting of media that government spent about on average E10 billion on procurement each year. The Times of Swaziland reported on Monday (29 January 2018), ‘He stated that they remained challenged to develop systems that would ensure that there is value for money as government undertakes procurement procedures but were challenged by the a number of issues that include budgetary constraints and being understaffed.’

SPPRA Director Policy, Legislation and Investigations Buhle Dlamini said out of 92 entities, especially in central government, only three adhered to the procurement act. The newspaper quoted him saying, ‘At present, we do not know how many tenders are being issued by government.’

The Times estimated 97 per cent of government institutions did not stick to the law.

Meanwhile, the United States has once again criticised Swaziland for the secrecy there is around the national budget. The State Department’s annual Fiscal Transparency Report for 2017 says there has been ‘no significant improvement’. Swaziland is ruled by King Mswati III as sub-Saharan Africa’s last absolute monarch.

The report said revenues from natural resources and land leases were not included in the budget. It added, ‘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.’

It criticised the role of King Mswati in awarding mining licences. It said, ‘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.’

King Mswati takes 25 percent of all mining royalties in his kingdom. He is said to hold this money ‘in trust for the nation’ but in fact uses it to fund his own lavish lifestyle. He has at least 13 palaces in the tiny kingdom with a population of about 1.3 million people. He has a fleet of top-of-the-range Mercedes and BMW cars and at least one Rolls Royce. He has a private airplane and is expected to take delivery of another during 2018.

Seven in ten of his subjects live in abject poverty with incomes of less than US$2 per day.

Wednesday, 8 March 2017

U.S. SAYS BUDGET LACKS TRANSPARENCY

King Mswati III’s Government has fallen foul of one of its most important aid donors, the United States, because it hides information about how its spends taxpayers’ money from the people.

In a review of the 2016 Swaziland budget, the US State Department found details about how money given to the Royal Family was spent was missing. Also hidden was detailed information about spending on the military, police and correctional services.

The Fiscal Transparency Report said some information about these expenditures were given, ‘but lacked detail and were not subject to the same oversight as the rest of the budget’.

The United States undertakes annual reports on ‘fiscal transparency’ of governments that receive U.S. assistance to ‘help ensure U.S. taxpayer money is used appropriately’.

The report noted that, ‘revenues from natural resources and land leases were not included in the budget’.

In Swaziland, King Mswati, who rules as sub-Saharan Africa’s last absolute monarch, takes 25 percent of all income generated from mining and mineral extraction. He holds this ‘in trust for the Swazi nation,’ but in fact uses the money to finance his own lavish lifestyle. He has at least 13 palaces, a private jet plane (with another on the way), fleets of top-of-the-range BMW and Mercedes cars and at least one Rolls Royce.

Meanwhile, seven in ten of the King’s subjects live in abject poverty with incomes less than US$2 per day.

Regarding, contracts for mining and mineral extraction, the report stated, ‘Basic information on awards was not always publicly available. The process actually used to award licenses and contracts has apparently been broadly consistent with the law or regulation, though the process has consisted of submitting applications for licenses directly to the King.’

The report concluded, ‘Fiscal transparency in Swaziland would be improved by: providing more detail on expenditures and revenues in the budget, particularly natural resource revenues and expenditures of the Royal Family; subjecting the entire budget to audit and oversight; and making basic information on natural resource extraction awards publicly available.’

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