TAXPAYERS FACE OVER E65MIN UNRESOLVED GOVT FUNDS

MBABANE - Taxpayers could face a staggering loss of over E65 million if ongoing issues related to unaccounted government funds reported to the Losses Committee are not resolved. This critical finding was highlighted by the Public Accounts Committee (PAC), which recently presented recommendations based on the auditor general’s (AG) financial audit reports for the fiscal years ending March 31, 2022, and 2023. The PAC indicated that the misappropriated funds stemmed from various sources, including employee salary overpayments, unaccounted project expenditures and financial malfeasance associated with school head teachers. “Our calculations indicate that a total of E65 636 784.99 from diverse ministries is at risk of being lost if recovery actions are not taken,” reported the PAC.

Investigating

According to the Finance Management and Audit Act of 1967, the minister for Finance is empowered to establish the Losses Committee, which is tasked with investigating lost public property based on findings that the committee submits to the principal secretary.  The Deputy Prime Minister’s (DPM) Office has come under fire for collecting fraudulent elderly grants amounting to E130 835, taken by proxies for deceased beneficiaries. “We’ve obtained confessions from some of the proxies involved, but others remain elusive,” said the controlling officer.  In the Lubombo Region, seven proxies were caught and fined E60 each, after they collected E21 240, while six others in the Manzini Region were linked to another E26 500, with police continuing their hunt for them. Additionally, the PAC flagged E553 295.39 incurred by the DPM’s Office for repairs on accident-damaged vehicles, insisting that these costs be recovered.  “The issue surrounding five vehicles was initially reported to the Losses Committee in February 2022 and remains pending,” warned the PAC, while emphasising that failure to provide updates could lead to contempt of Parliament charges.

In another significant finding, the Ministry of Foreign Affairs and International Cooperation was implicated when local staff at the Eswatini mission in New York exceeded the transport allowances by US$2 480.91 (approximately E32 251.83). The PAC has called for biannual updates on this case from the controlling officer. Furthermore, a former housekeeper for the London High Commission was overpaid by E64 999.74 after reportedly disappearing from her role.  This matter has also been referred to the Losses Committee, with the PAC pressing for swift action. Moreover, there is a puzzling case of a bucopho from Dingizwe, who has continued receiving a salary of E93 846.03 since 2010, despite being untraceable.  The PAC noted that an investigation into this issue is ongoing with the Losses Committee, highlighting a concerning trend of financial oversight.

Additionally, materials worth E364 260.78, intended for the Asibambisane Youth Association are unaccounted for, with group expenses totalling E108 337.50 also missing.  The PAC emphasised the necessity of prompt reporting and recovery in such scenarios. The PAC explained that the controlling officer submitted that the police have closed the docket, pending the arrest of the suspect and it shall be re-opened after his arrest.  The PAC then urged the controlling officer to report the matter to the Losses Committee within seven days after the adoption of the report by the House and thereafter, update the committee and the AG on progress.  

Furthermore, it was mentioned that a salary overpayment of E20 069.75 was made to employment numbers of two employees in the Ministry of Natural Resources and Energy. In the report, the PAC said the controlling officer submitted that one of the employees was paid an amount of E700 and the balance as of April 2022 stood at E4 006.99.  “However, the person who was paying the debt on behalf of the former employee has since died. The matter was reported to the Losses Committee, where it is pending. The other officer has fully-settled his debt,” the PAC said.

Update

Meanwhile, the PAC urged the controlling officer to follow up on the matter with the Losses Committee and biannually update the committee and the AG on progress. Moreover, it was reported that in an audit inspection of the grant to Komati Basin Water Authority (KOBWA), the AG reported that a support truck registered SG 164 NR was involved in an accident on April 6, 2016, however, the ministry did not have records pertaining to the accident, such as a police report and an accident, report form, as well as an assessment of the damage incurred.  
“It was also revealed that some of the documents, including the police report and accident report forms were completed six months after the accident, which was a day after the audit. Repairs to the truck cost government E211 035.65,” the PAC revealed.

The PAC noted that the controlling officer submitted that the matter is still pending before the Losses Committee.  Also, under the Ministry of Agriculture, the PAC mentioned that the AG noted that an officer who had been granted early retirement by the Ministry of Public Service was paid a salary of E3 332.92 a month after her retirement.   According to the PAC, the controlling officer submitted that the officer was located with the assistance of the police and he paid E1 000, but he then disappeared again.  The PAC went on to urge the controlling officer to engage the police again and if the officer cannot be located, he should report the matter to the Losses Committee.  Throughout the report, the PAC underscored the pressing need for accountability and the importance of timely updates on all matters referred to the Losses Committee, to safeguard taxpayers’ money from unnecessary losses.

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