200 SET TO LOSE JOBS AFTER USAID TERMINATES FUNDING

MBABANE - Jobs of close to 200 emaSwati hired by a local NGO are on the line after a project funded by the USAID was terminated last week.

The project was terminated following findings of alleged mismanagement of funds and tax evasion by the non-governmental organisation known as Joyful Hearts Organisation (JHO).
The JHO was responsible for a project known as Insika Yakusasa, which it implemented using funds from USAID through the Pact World Organisation. According to a notice written by Pact Country Director Nosipho Storer dated February 1, 2022, the termination of the project followed a submission and review of JHO’s December 2021 financial report, where there was a finding of alleged financial mismanagement of the USAID funds.

“An investigation of remittance of statutory payments was also conducted and we discovered that pay as you earn (PAYE) deducted from employees was not consistently remitted to the Eswatini Revenue Service. This was further deliberated with the Joyful Hearts Organisation senior management and an acknowledgement of this mismanagement was also confirmed by the organisation,” reads part of the letter.

Regulations

It was stated that as per the project’s regulations, Pact was suspending the sub-award which was Co-operative Agreement No.268-000076, which was awarded to JHO due to the breach of some clauses of the sub-award co-operative agreement. “Article 8 states that all costs charged to the award should be allowable. Funds were transferred from the project account without prior approval,” it was mentioned. The notice also cited another clause which states that the non-federal entity assumed responsibility for administering federal funds in a manner inconsistent with underlying agreements, programme objectives and the terms and conditions of the award. “Project funds were used to pay for the organisation’s activity (i.e gratuity) yet monthly deductions for this cost were already remitted to the organisation’s account,” the notice said.

Furthermore, it was highlighted that the Eswatini Revenue Service mandated by government to collect taxes, clearly stipulated that all employees’ tax deducted by the employer must be paid in full before the seventh day of the following month together the PAYE monthly declaration return. It was mentioned that interest was charged at 18 per cent on late payments and penalties charged at 20 per cent. According to the notice, JHO currently owed ERS for PAYE, which was deducted from employees but not consistently remitted and this was deemed as an unlawful evasion of tax payment.

“The ERS will also charge penalties and interest on the outstanding debt. JHO has not presented a plan of how this liability will be paid. The termination notice will be for 30 days with effect from February 1, 2022. During this period, Pact will be conducting further investigations on the total liability to ERS. JHO is requested to inform employees and give notice of termination of services to employees as well,” it was mentioned.

Suspension

The notice stated that JHO shall within 30 calendar days, after the effective date of the suspension, repay Pact all unexpended donor funds provided by Pact, which were not otherwise obligated by a legally binding transaction applicable to the grant. “This includes the current amount of E141 763.51 owed to Pact by JHO,” it was further mention. When sought for comment through a questionnaire sent by this publication last Thursday, the Pact country director confirmed the latest development. She said; “Pact has been supporting local organisation, Joyful Hearts Organisation (JHO) since August 2018 to implement community-based programming for orphaned and vulnerable children and HIV prevention. Throughout this time, Pact has provided routine programme oversight, capacity development and financial auditing to JHO.” The country director mentioned that through routine technical and financial oversight processes, it was determined that JHO’s grants management did not meet Pact’s standard for financial accountability. “Pact places high value and integrity on our partners and because our standards were not met, a decision was taken to discontinue this partnership,” she highlighted. Following the latest developments, some employees of JHO were already on panic mode as they said they were worried that they would lose their jobs.

Employees

It was gathered that the Executive Director of JHO, Annonciatta Mukabucyane, met some of the employees last Friday to discuss the issue. According to its website, JHO is a local NGO established in August 2011 with an objective to contribute to the improvement of the quality of life for emaSwati and refugees/asylum seekers living with HIV/TB and to address social challenges that include poverty, environmental, hunger and lack of access to health services for emaSwati and refugees/asylum seekers. The profile states that JHO’s basic philosophy is the promotion of basic human rights, through access to health, education and economic strengthening services. It was also highlighted that JHO was compliant with government laws, policies, and regulations.

Although the organisation is faith-based, the website states that it does not proselyte beneficiaries; however, services are provided to people regardless of their faith, creed, sexual orientation and preference, community and political affiliations. The organisation works with leaders through their organised forums or denominations and the focus is the role of the leaders in the advocacy of spiritual and healthy life of their members. Some of the work it has been involved in, include the Malindza HIV/TB Project, which was done between 2013 and 2015. The project, according to the JHO website, was implemented at Malindza and surrounding areas using funds from PEPFAR and USAID through the Coordinating Assembly of Non-Governmental Organisations (CANGO) and Pact.

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