Times Of Swaziland: ESWATINI’S E1.2 BILLION CORRUPTION DRAIN ESWATINI’S E1.2 BILLION CORRUPTION DRAIN ================================================================================ Stanley Khumalo on 11/02/2025 08:22:00 MBABANE – Eswatini loses an estimated E1.2 billion annually to corruption, with the health sector a prime example of misappropriated State funds, according to an economist. As per a 2022 Public Accounts Committee (PAC) submission, the country loses approximately E91 million monthly due to corruption in government ministries and departments. This E91 million monthly figure translates to E1.2 billion annually, a trend reportedly ongoing since 2019. The PAC reported this figure represents a E51 million increase from the previously reported E40 million monthly loss, a more than 100 per cent increase. University of Eswatini economics lecturer Sanele Sibiya said the country will not progress, regardless of budget resources, unless corruption is addressed. He cited the Funduzi Forensic Investigation report alleging widespread corruption in the public health sector, calling for further investigation and prosecution by law enforcement. Delivered “Medication was reportedly paid for but never delivered. There is also the 10 per cent demanded when you seek to supply government, which in turn skyrockets the cost borne by the taxpayer,” Sibiya said. He said all budgets outline plans to address corruption and he expects Minister for Finance Neal Rijkenberg to do the same in his upcoming budget address. Sibiya urged Rijkenberg to distribute taxpayer money responsibly, with proper accountability measures. He argued that corruption currently renders government inefficient. “With corruption at its current rate, nothing can be achieved. The health crisis is a prime example of how easy it is to loot taxpayer money and face no repercussions, as shown by the forensic report,” he said. Sibiya emphasised that those responsible for corrupt practices should be arrested. Echoing public sentiment from the 2023 Sibaya national dialogue, he lamented the existence of seemingly ‘untouchable’ individuals, who obstruct progress. He added that the purported demands for money by unscrupulous civil servants in order to render free government services, negatively impact the country, frustrating potential investors. The Funduzi Forensic Report, nearly a year later after being presented to Parliament, has resulted in no arrests or subpoenas being issued against implicated entities or individuals. The forensic report suggests certain officials have a case to answer regarding the relabelling of medicines, potentially misrepresenting drug quality and expiration dates. It claims boxes of water for injection were tampered with and resealed, and vials were received without labelling and labelled/repackaged inside the Central Medical Services (CMS) warehouse.The forensic report followed a report by Auditor General Timothy Matsebula’s Office, which highlighted significant challenges in the purchase, delivery, and supply of drugs and medicines to public health facilities. The Funduzi report made 23 findings, including allegations that CMS leadership caused government losses by failing to mitigate drug theft and follow through on criminal investigations. The report also alleges government paid E7 million for donated trial drugs (Remdesivir) during the COVID-19 pandemic, a potentially fraudulent and wasteful expenditure. It claims certain suppliers were complicit in creating a false claim for these donated drugs, which were later found in large quantities at CMS and Mbabane Government Hospital. The report further alleges possible duplicate payments to suppliers, including one instance of E68 million, and overpayments of approximately E8 million to suppliers who were awarded a tender at E2 million but paid E10 million. Funduzi also found that large quantities of paid-for drugs and medicines never reached public health facilities. It alleges some officials have a case to answer regarding conflict of interest, money laundering, corruption and collusion, citing money received from government suppliers and other gratifications. Investigating In a previous interview, Rijkenberg said investigating the Phalala Medical Referral Fund, closing the Central Transport Administration (CTA) Trading Account and terminating open tenders had saved taxpayers millions. He said these were austerity measures employed to combat corruption. Rijkenberg said the taxpayer has saved over E300 million at the CTA by suspending its trading account and procuring its fleet through government fleet leasing and financing. He also said government, through the Ministry of Finance and the attorney general, developed watertight contracts for capital projects, ensuring projects cost the allocated amount. He noted that previous open tenders often resulted in costs ballooning to triple or more than the initial estimate. He cited the Sicunusa-Nhlangano Road project as an example, which ultimately cost E1.2 billion after initial cost overruns. He said the change in contracts, including service provider contracts, had saved millions. He also cited clamping down on the Phalala Fund, which he said had saved over E100 million. This publication has extensively reported on alleged corruption related to the Phalala Fund, leading to government suspending the account and scrutinising its expenditure. The fund, meant to assist emaSwati needing specialised medical care, has faced financial constraints. Payments Auditor General Phestecia Nxumalo previously reported that the state lost money due to multiple payments from the Phalala Fund, estimating that 128 patients could have been assisted with the lost funds. She said auditors discovered 297 invoices were double or triple-paid. The exposure of corruption has led the Anti-Corruption Commission to investigate 250 cases, including those related to the Ministry of Health and the Ministry of Home Affairs. The ACC has recently made two arrests. Other exposed cases include the theft of government documents in the Ministry of Home Affairs, resulting in over 20 arrests, and officials demanding 10 per cent from suppliers, leading to arrests and charges. Rijkenberg, when asked about efforts to thwart corruption and limit government expenditure, said: “The capital projects government has started in recent years are limited to the budget as the government since 2018 has re-measurable contracts to lump sum contracts. We can’t say the regional style of contracting was really corruption, but it tended to cost government four times or more than the initial price.” He added that the change in contracts and clamping down on the Phalala Fund had saved millions.