PHALALA FUND DEFRAUDED E9M, 128 PATIENTS AFFECTED

MBABANE – About 128 patients could not benefit from the Phalala Fund as the state was defrauded E9 million due to multiple payments in the past three years.

Accountant General Phestecia Nxumalo, in her performance audit report on the utilisation of Phalala fund, said the state lost the money due to multiple payments.
“An estimated 128 patients (E8 990 882.92) could have benefitted when using the average service charge of E70 000 per patient.”

She said when reviewing the payment vouchers, auditors discovered that 297 invoices were double paid or even paid three times.
“There were four invoices that were paid by cheque and also by bank transfers in the 2012/2013 financial year.”
The auditors discovered that payments amounting to E1 068 810.51 were overpaid for 2010/2011 while the 2011/2012 financial year was heavily overpaid with E6 412 264.62. She said 2012/2013 was the second most overpaid period with E1 509 807.79.

Nxumalo said the multiple payments came in two different ways.
She said auditors noted that there were invoices which were duplicates of other invoices which were already paid and were attached using separate payment vouchers.
She said some suppliers were dishonest as they reprinted invoices on different dates with the same patient’s attendance dates and same invoice numbers.

Nxumalo said the multiple payments were a result of non-maintenance of the invoice register which is prescribed by the Financial and Accounting Instructions.
She said this register helped show invoices that had already been paid which she termed negligence by accountants.
“This was an intentional misrepresentation of facts by suppliers to commit fraud.”

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