LOBAMBA-Allegations that some officers from the Treasury Department demand bribes from suppliers in exchange for faster payments surfaced before the Public Accounts Committee (PAC) yesterday.
This prompted the committee to make a demand for Treasury to produce a detailed report on payments made to suppliers and those that are outstanding.
During the sitting, legislators questioned Accountant General, Nomsa Simelane over persistent complaints from businesses that claim they have waited months for payment despite government assurances that suppliers are being paid.
Matsanjeni South Member of Parliament (MP) Sicelo Ndlangamandla told the committee that suppliers had raised serious allegations regarding the manner in which payments were being processed at Treasury.
According to the MP, several suppliers had alleged that there was a network of officials within the department whose role was to facilitate faster payments for preferred suppliers while others continued waiting for months.
He said the allegations suggested that some businesses were expected to pay bribes before their invoices could be prioritised.
"There is a claim that at Treasury there is a scheme of officers which was created and all that they do is facilitate quick payment of suppliers who are their friends. That is why there are suppliers who are still owed money that should have been paid in November. The suppliers tell us that to be paid, they must pay certain people. Specifically, they must 'grease certain hands' to get quick payment," Ndlangamandla alleged.
The claims came as the committee continued scrutinising Treasury's handling of supplier arrears following the AG's findings on unsupported accruals amounting to more than E3.1 billion.
Responding to the allegations, Accountant General Nomsa Simelane said she was not aware of any manipulation of Treasury's payment system and maintained that the department's electronic payment process was designed to minimise opportunities for interference.
She said they had previously invited the PAC to visit the department so that members could better understand how supplier payments were processed, arguing that the payment system could not easily be manipulated because it was largely automated.
"We explained that it is difficult to discuss Treasury operations in a hotel; you have to come to Treasury and experience the steps involved in paying suppliers. I heard reports about manipulation of the system and I was shocked.
“The system that we have, once an officer completes the verification process, it encrypts the file according to the dates and automatically creates the EFT numbers before the file is uploaded onto the Central Bank of Eswatini system. Maybe MPs should come and spend at least two hours with us to understand how it works. As for reports that some officers are receiving inducements, I am not aware of that. We work through a system," Simelane said.
Her response, however, did not satisfy Ndlangamandla, who argued that the seriousness of the allegations warranted a commitment to investigate rather than an explanation of how the system operated.
The legislator said he had personally received complaints from more than 10 suppliers who all raised similar concerns.
The MP said he had expected the accountant general to assure the committee that the allegations would be investigated internally and that any wrongdoing would be dealt with.
PAC Chairperson Madala Mhlanga also said an investigation into the allegations would be appropriate. While welcoming Simelane's invitation for committee members to visit Treasury and familiarise themselves with the payment system, PAC Chairperson Madala Mhlanga said the department should also examine the allegations to determine whether there was any truth to the claims being made by suppliers.
Representatives from the Office of the Auditor General also weighed in, urging closer cooperation between Treasury and auditors to resolve the outstanding audit queries.
Officials from the Auditor General's Office said the department had still not submitted the information that auditors had requested regarding supplier payments.
They explained that auditors were simply seeking a complete report showing all payments made from the questioned amount with the outstanding balance.
According to the auditors, the annexures submitted by Treasury did not provide the information required to verify the payments.
On another note, the PAC made it known that ministries will be in trouble if they appear without procurement officers.
PAC Chairperson Madala Mhlanga.