MBABANE – More than E147 million deducted from workers’ salaries for retirement savings remains unremitted, exposing employees to risk and revealing deep financial strain within public institutions.
The Auditor General’s Compliance Audit Report for Local Government Authorities and Public Enterprises of the Kingdom of Eswatini – Financial Year Ended March 31, 2024, depicts that parastatals are struggling to meet obligations that should never have been optional.
Pension and provident fund deductions were taken from employees’ salaries, but the money did not reach the retirement funds for which it was intended.
The audit identified four institutions with confirmed arrears amounting to E147.1 million. The University of Eswatini (UNESWA) with E98.9 million, Eswatini Television Authority (ESTVA) with E33.5 million, Eswatini Medical Christian University with E7.4 million and Southern African Nazarene University (SANU) with E7.3 million.
Institutions under the Ministry of Education and Training alone accounted for more than E113 million, or roughly 77 per cent of the total arrears identified by auditors.
At the centre of the crisis is UNESWA, whose E98.9 million liability represents about two-thirds of the total outstanding contributions.
It is reported that the university’s arrears increased by E37.5 million compared to the previous financial year, a rise of approximately 61 per cent.
Auditors also found substantial outstanding pay-as-you-earn (PAYE) obligations at the university, indicating that the problem extends beyond retirement contributions and points to wider challenges in meeting statutory commitments.
The challenge is not confined to UNESWA. ESTVA, the country’s public broadcaster, emerged as the second-largest contributor to the arrears with liabilities amounting to E33.5 million.
The audit linked the arrears to wider financial difficulties, including liquidity constraints and operational challenges.
Additional balances payable to the Eswatini National Provident Fund (ENPF) were also noted, reinforcing concerns about the broadcaster’s financial sustainability.
Eswatini Medical Christian University had outstanding provident fund obligations of E7.4 million, while SANU reported E7.3 million in unpaid contributions.
More worrying, however, was evidence from audit follow-up procedures showing that SANU’s liability had grown to about E9.3 million by March 2025, suggesting the problem continued beyond the reporting period.
It is worth noting that pension and provident fund contributions are deducted from salaries with the expectation that the money will be transferred to retirement funds and invested on behalf of workers.
*Full article available on Pressreader*
Leave a comment