Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698084231153.pdf (Swaziland)
THE KINGDOM OF SWAZILAND REPORT OF THE AUDITOR GENERAL FOR THE FINANCIAL YEAR ENDED 31st MARCH 2011 REP PORT O OF THE E AUDIT TOR GE ENERA AL ON N THE WO ORK OF THE OFF FICE OF T THE AUD DITOR GE ENERAL AND ON THE GOVERN NMENT A ACCOUNT TS OF TH HE KI INGDOM M OF SWA AZILAND FOR TH HE FINA NCIAL Y YEAR END DED 31ST M MARCH 2 2011 Page i Office of the Auditor General P.O.

Box 98 MBABANE H100 Swaziland Honourable M.V.

Sithole Minister for Finance P.O.

Box 443 Mbabane H100 Swaziland Your Honourable.


In accordance with Section 207 (5) of the Constitution of Swaziland, I have pleasure and honour to submit my report on the Audit of the Accounts of the Government of Swaziland for the financial year ended 31st March, 2011.

Yours faithfully P. T. Nxumalo Acting Auditor General Kingdom of Swaziland Page ii The O three statem Office of th year strateg ments and va he Auditor G gic plan beg alues or code General (OA ginning 2012 e of ethics.
AG) of Swaz 2 – 2014 wi However it ziland has c ith the follo is still being ompleted fo owing vision g reviewed.

ormulating it n and missio ts on VISION V Our v addre vision is tha esses audit is at the Office ssues with pr e of the Au roficiency an ditor Genera nd passion.

al be an aut tonomous in nstitution tha at MISSION M Our Instit in ter Mission is tution (SAI) rms of the Au that, the O that audits a udit Act No Office of the and assesses .
4 of 2005 a e Auditor G s value for m and advise st General is a money applic takeholders.

a Public Su cation on pu upreme Aud ublic account dit ts VA ALUES OR R CODE OF F ETHICS The behav Gene following s viour and at eral.
statements o ttitudes of b of values or oth the audi r principles it and suppo s are formu ort staff of t ulated to he the Office o elp guide th f the Audito he or • • • • • • • nalism tiality Respect Profession Confident Integrity Independe ence on Innovatio neutrality Political n Page iii The Speaker of the House of Assembly in Parliament C E R T I F I C A T E Report on the Financial Statements I have audited the balance sheet of the consolidated fund of the Swaziland Government which comprise the annual financial statements and the various trading accounts as at 31st March, 2011 and the related statements of revenues and expenditures for the year then ended which were prepared in accordance with section 18 of the Finance Management and Audit Act of 1967 as amended in 1992.
Treasury’s Responsibility for the Financial Statements The Accountant General is responsible for the preparation and fair presentation of these financial statements in accordance with section 18 of the Finance Management and Audit Act of 1967 as amended in 1992, and for such internal control, as management determines is necessary to enable the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility My responsibility is to express an independent opinion on these financial statements based on the audit.

I conducted the audit in accordance with international standards of audit.

Those standards required that I comply with ethical requirements, plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
The audit involved performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal controls relevant to the Treasury’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the government internal controls.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

However, my report includes matters relating to previous financial years budget.
Due to their materiality by nature, they cannot be overlooked since they have fraudulent elements.

Page iv In my opinion, the consolidated financial statements and the surplus and deficit accounts present fairly, in all material aspects the financial position of the Swaziland Government as at 31st March, 2011 except for the audit observations and comments made, in this report.
P. T. Nxumalo Acting Auditor General Page v TABLE OF CONTENTS PAGE (S) PART A INTRODUCTION …………………………………… PART B MINISTRIES & DEPARTMENTS ………………… HEAD 02 Parliament …………………………………………….
HEAD 03 Private and Cabinet Office ………………………….. HEAD 04 Tourism and Environmental Affairs ……………….. HEAD 05 Police ………………………………………………….. HEAD 06 Deputy Prime Minister’s Office …………………….. HEAD 07 Foreign Affairs and International Co-operation …... HEAD 08 Defence ……………………………………………….. HEAD 09 Tinkhundla Administration and Development …….
HEAD 10 Natural Resources and Energy ……………………... HEAD 20 Agriculture …………………………………………… HEAD 23 Economic Planning and Development ……………… HEAD 24 Housing and Urban Development …………………... HEAD 29 Commerce Industry and Trade ……………………... HEAD 30 Education and Training ……………………………... HEAD 34 Finance ………………………………………………... HEAD 40 Labour and Social Security ………………………….. HEAD 41 Public Service ………………………………………… HEAD 43 Information Communication and Technology …….. HEAD 44 Elections and Boundaries Commission …………….. HEAD 45 Health ………………………………………………… HEAD 46 Justice and Constitutional Affairs ………………….
HEAD 48 Judiciary ……………………………………………... HEAD 49 Correctional Services ………………………………... HEAD 50 Home Affairs ………………………………………… HEAD 53 Public Works and Transport ……………………….. PART C APPENDICES ……………………………………….
Page vi 1 - 29 30 31 32 33-35 36 37-40 41-69 70-71 72-86 87-97 98-104 105-112 113-116 117-123 124-164 165-192 193-200 201-202 203-209 210-211 212-214 215 216-221 222-223 224-226 227-230 231-253 PART A INTRODUCTION Page vii 1.0 INTRODUCTION 1.1 Audit of Public Accounts I am required by Section 207 of subsection 3 and 5 of the Constitution of the Kingdom of Swaziland and Section 9 (3) of Act no.
4 of 2005 to audit the Public Accounts of the Kingdom of Swaziland and all offices, courts and authorities of government and submit my reports thereon to the Minister responsible for Finance, who shall cause them to be laid before both Chambers of Parliament.

In discharging these duties, I am required in terms of Section 9 (3) of the Audit Act No.
4 of 2005, to satisfy myself that: • Reasonable precautions have been taken to safeguard the collection of public monies and that the laws and instructions relating thereto have been duly observed.

• All monies disbursed have been expended and applied under proper authority and, adequate regulations exist for the guidance of storekeepers and have been duly observed.
• Receipts, payments and other transactions are made in accordance with applicable laws and instructions and are supported adequately by vouchers and • Satisfactory management measures have been duly taken to ensure that resources are procured economically and utilized efficiently and effectively.
2.0 SCOPE OF AUDIT The Government of Swaziland consists of Ministries which have departments in four regions, fifty five Tinkhundla centres, 880 schools and colleges which should be visited at least once a year for audit purposes.

the audit covers revenue collections, proper expenditure The scope of authorization in terms of the Appropriation Act, performance of Capital Projects expenditures, the Swazi National Treasury, the Swazi National Trust Commission and the Kings Office.
However, I do not report the performance of the accounts of the Kings Office and the Swazi National Treasury, to Parliament due to their laws/act.

I am further, in terms of the Audit Act No.

4 of 2005, Section 13 (1), required to carry out Performance Audits of the various government Ministries programs or activities to establish whether they have achieved their expected or intended performance or outcomes.
Again, in terms of Section 13 (3) of the same Audit Act, not withstanding the provisions of any other written law, for audit, I am mandated to carry out Page 1 investigations into the operations of the financial affairs of any public enterprise or corporation, where I consider it to be in the public interest to do so.
Audits were performed to satisfy myself that there was compliance with established regulations and in conformity with good practice of International Standards of Supreme Audit Institutions (ISSAIs) or International Auditing Standards.

The tests and checks are intended to provide an overall assurance on the propriety of government financial and Accounting transactions.
Also, audits were done to ensure the exercise of economy, efficiency and effectiveness, in the utilization of public funds and to highlight irregularities that have been reported on, though not exhaustively, not only through regular inspections reports, but emphatically through reference sheets.

The reference sheets are issued to spotlight areas of serious concerns and need for stringent administration and proper accountability, of public resources.
In the course of the audit, the findings are brought to the attention of the Ministries and Departments being audited, for consideration.

Controlling Officers are given an opportunity to respond to my observations, recommendations and related commentary.

Generally, I report to Parliament errors, omissions and irregularities that remained unresolved.
It should however, be noted that audit observations are intended to give advice for improvement, in the administration of public resources and are not necessarily to point out management weaknesses and should not be viewed as an embarrassment and victimization, but is merely encouragement of prudent utilization of public resources.

It is a statutory obligation for the Auditor General of Swaziland to report to Parliament any mismanagement of appropriated funds.
3.0 ACCOUNTING POLICIES 3.1 Ministries and Departments The Accounting Policies of Government are so framed to ensure that the resources appropriated by Parliament are properly accounted for.

In terms of Finance Management and Audit Act No.

18 of 1967 as amended in 1992, all revenues collected by Government shall be deposited into the Consolidated Fund.

Payments out of the Consolidated Fund will be through appropriations by Parliament.

• The government accounts are prepared on a cash basis.
Revenue earned by Government is not recorded until received in cash and on the expenditure side, charges are made only when payment has been processed through.

• Assets, for example, land, buildings and vehicles etc are not included.

These are charged as budgetary expenditure at the time of acquisition.
Page 2 3.2 Public Enterprises The operations of the statutory bodies or Government Companies, popularly known as Public Enterprises or Parastatal bodies are not included in the Public Accounts of the Government of Swaziland and hence not audited by my office but by private Auditors as their acts detect, except for the Kings Office, Swazi National Treasury, Swaziland National Trust Commission and Swaziland Revenue Authority.
Regarding Swaziland Revenue Authority, I only audit the collection of revenue but their office budget has been audited by the private Auditors.

As mandated by the Section 21 of the Audit Act No.

4 of 2005 the category A Public Enterprises are required to submit to me, their audited financial statements, reports on the financial statements and their management letters.

As mandated by Section 21 of the Audit Act No.


4 of 2005 the category A Public Enterprises are required to submit to me, their Audited Annual Financial Statements, reports on the Financial Statements and Management letters.

Parliament through the Public Accounts Committee resolved that all public enterprise’s Audited Annual Financial Statements be submitted to the Auditor General for review before being tabled in Parliament by the relevant Minister.
However, I note that most public enterprises are unable to comply with the PAC resolution.

During the 2010/11 financial year, 6 relatively new enterprises were added to the previous year’s 33 category A Public Enterprises, which entails that there are now 39 recognized Public Enterprises, of which 2 of them, being National Industrial Development Corporation (NIDC) and Commercial Board (CB) have been declared dormant by the Public Enterprise Unit.
Of the 39 category A Public Enterprises, 18 did not submit their Audited Annual Financial Statements and Management Letters for the financial year ending 31st March 2010/11.

I was therefore able to review 19 Public Enterprises who managed to submit their Financial Statements and other reports to the office.
In reviewing the audited Financial Statements, the focus is on the evaluation of the various ratios to establish the enterprise’s sustainability of services to the public, to identify significant weaknesses in internal controls and stewardship roles of managers, in particular those weaknesses which may pose significant risks to public funds.

Such risks may be identified in Reports to Management which should, according to the law, be submitted to me for review.
I am concerned that most of these Public Enterprises do not submit the Reports to Management (Letters of weaknesses).

I believe that if submitted for review these reports may contain reportable issues which might be of public interest and the Honorable members of Parliament.

Further, this may bring to public, the value added by the work of the private auditors to the Government Enterprises and expose public enterprises that are not audited at all.
Page 3 It must be noted that some of the public enterprises do not submit in time and thus call for the office to write reminding letters to them and this delays the process of review of the enterprises Financial Statements.

Though a number of the Public Enterprises have started complying with the PEU Circular No.

3/2008, the rest of the enterprises still do not comply.
This is in contrast of the fact that the circular, dated 29th July, 2008 requested all the Public Enterprises to yearly provide the Office of the Auditor General with their Audited Financial Statements and other accompanying reports.

4.0 OFFICE OF THE AUDITOR GENERAL It is internationally recognized and acceptable that the role of the Office of the Auditor General is to enhance good governance which is accountability, transparency and probity in the financial management of government funds.
The office, in its endeavour to see to it that fraud and corruption are detected, mitigated and reported upon, maintains a high risk program and carries out intensive audits.

The office, in its effort to detect fraud and corruption is creating a preventative environment by strengthening the financial management systems, evaluating internal control systems, identifying and evaluating risks and recommending corrective measures to minimize the weaknesses.
Good financial reporting and auditing help reduce the misrepresentation that conceal fraudulent operations and corrupt elements which mislead the users of the financial statements.

Therefore, my auditing provides the desirable assurance that audited financial statements can be trusted by a number of stakeholders and fairly present the economic activities they are intended to potray.

In accordance with the Audit Act No.


4 of 2005, section 23 (i) the Office of the Auditor General is being audited by a qualified Auditor nominated by the Minister for Finance in order to be accountable for the funds appropriated by Parliament.

The Office of the Auditor General continues to experience numerous professional, legal, administrative and financial problems.

These challenges pose a draw back in the operational performance of the office.
However, it is a great pleasure to report that in a bid to address, the challenges reported in my previous reports, the Ministry of Finance is in the process of reviewing the Audit Act No.

4 of 2005, as per Parliamentary resolution which was brought about by the Public Accounts Committee.

The Office of the Auditor General has completed formulating its 2012 to 2014 Strategic Plan and it is currently under peer review by AFROSAI-E which is our Page 4 Affiliate Supervisory Body.
I am positive that the Strategic Plan and its operational plan will be feasible and implementable.

4.1 Staff Complement As a people – oriented organization, the achievement of our results is solely dependent on the effort and support of our professional staff.

In this regard staff motivation, continuous learning and employment equity are critical ingredients for the sustainable success of the Office.
The Office with regard to staff motivation is looking forward to enactment of the Public Service Bill which will provide for performance rewards to those who excelled in discharging their duties.

This will bring about correction, change in human behaviour and improvement on poor performance and unacceptable work habits.

Audit Managers are encouraged to become proficient in managing optimally, the important combination of tasks and people in pursuit of the office objectives.
The Managers are to mentor, conduct on the job training and do a lot of coaching, in order to deliver good quality audit work.

During the year under review, the Office had 99 established posts which are categorized into 85 Audit Officers and 14 support staff.

But there are 7 vacant posts for Audit Staff and 3 for the support staff.

Filling of the vacant posts was suspended due to cash flow crisis experienced in the country.
However it is hoped that with the lapse of time, the cash flow crisis will improve and the vacant posts will be filled.

The table below illustrates the breakdown of the staff members.

Staff Category Senior Managers Middle Managers Audit Supervisors Junior Auditors Support Staff Establishment 10 25 18 32 14 Filled 9 24 15 30 11 Vacant 1 1 3 2 3 The Office is still eager that 35 posts of audit staff and 4 posts of support staff be filled as the intended future staff complement is expected to be 120 posts.
I am hopeful that once the financial crisis is over, government will authorize the required posts.

4.2 Training and Career Development of Audit Staff The Office encourages officers to continue training in order to add value to the audit work.

It is the desire of this office that officers are constantly trained in order to sharpen their skills to keep abreast with the endless developments.
It is Page 5 unfortunate that due to the centralized training budget and financial constraints the office cannot train its staff as desired.

However, it is encouraging to note that officers on their own financial effort continue to further their training academically, technically and professionally, in the accounting profession, during their spare time.
I would once again like to express my appreciation to all the officers who are making every effort to continue to train themselves, using their money and their spare time.

It should be noted that the office has the desire to continuously train its staff, but it is disadvantaged by the lack of training funds, which continue to be a constraint in trying to enhance the skills of the audit staff.

During the year under review the in-service training scholarship was suspended due to the financial constraints.
The Office continues to strive to source training funds from its offices, International Donor Organizations and other Supreme Audit Institutions.

The following training courses, seminars and workshops which were funded by the Office, Affiliate institutions and other Supreme Audit Institutions were attended and or pursued by the audit staff during the financial year 2010/11.
Number of Officers 1 1 1 6 2 1 1 1 1 3 Courses/Workshop Full/Part Time Funding Fellowship Auditor International Program Mentoring Program Bcom in Auditing ACCA II AAT III CAT III Environmental Audit I.T.
Audit Human Resource Management Development Programme Full time Part time Part time Part time Part time Part time Full time Full time Part time Full time Sponsored Non- sponsored Non-sponsored Non-sponsored Non-sponsored Non-sponsored Sponsored Sponsored Non-sponsored Sponsored This kind of training initiatives present a lot of opportunities for both the Audit Office and its Staff in trying to upgrade their skills, competency and in keeping abreast with learning developments in order to maintain best practices, to become self-disciplined and Industrious in their work so that they realise their career potentials and job aspirations.
The Office would like to extend its appreciation for the continuous support rendered by the governments of USA General Accounting Office (GAO), India National Audit Office, Malaysia National Audit Academy (Jabatan Audit Negara) UK National Audit Office (NAO) and the African Organisation of Supreme Audit Institutions of English Speaking Countries (AFROSAI-E).

Page 6 4.3 Office Space The Office has a challenge of inadequate office space.
Currently the staff members are so congested that even senior officials are sharing the offices.

To alleviate this problem, I have proposed to the Ministry of Economic Planning and Development, a capital project in order to construct a stand alone office building.

I am looking forward that the Public Budgeting Committee (PBC) will in the near future be able to provide funds to fulfill the office’s request.
4.4 Budget of the Office of the Auditor General (OAG) The Office is still appealing to government for the allocation of an adequate budget to fulfill its statutory obligation of auditing all ministries and departments across the country.

Although there was an increase of 28% in the office budget in 2009/10, but due to budget cuts across government, the budget declined by 10% in 2010/11, as a consequence of the prevalent financial crisis.
It should be noted, though, that the larger share is absorbed by the personnel budget and the operational budget remained minimal and thus affects the audit scope.

This situation has been aggravated by the increase of Ministries and Departments which calls for the high demand of the audit service.

Therefore the continuous insufficient budget will increase the fraudulent and corruption opportunities in government.
I would like to plead for an increase in the Office budget because government programmes and activities continue to increase thus increasing the audit work load of the Office whose budget does not commensurate with this work load.

The table below clearly depicts the trend, in the last three years, of the overall government budget, which was allocated to statutory recurrent and capital budget versus budget allocation to the Office of the Auditor General.
Description Government Overall budget Budget of the Office of the Auditor General 2008/2009 E11 082 474 769.00 E 10 956 327.00 2009/2010 E12 671 966 545.00 E 14 044 972.00 2010/2011 E11 430 277 879.00 E12 623 571.00 Page 7 Governmen nt Budget VS S OAG Budg get Budget 15,000,000, 000 10,000,000, 000 5,000,000, 000 - 2008/20 009 2009/2010 2010/2011 Fisca al Year The budg compared get of the off d with the ov fice as demo verall govern nstrated by t nment budge the graph sh hows that its l. et is minimal Government Overall Budget OAG Budget budget whe en The offic coverage, prevailing carry out over spen accomplis to various e finds itself , to accom g financial a its audit wo nt its CTA sh the audit s parts of the f working un mplish its m and resource ork.
As a res budget by work.

That e country is e nder extrem mandatory o e constraints sult during t 92% becau t is, auditing essential.

me difficulty obligation.

s the office h the year, und use it is a g is fieldwor in trying to However, has tried its der review, t key compo rk and theref % obtain 100% he despite th to level best t as the office ha to nent used t ng fore travelin 5.0 5.1 PUBLIC ACCOUNT TS COMMI ITTEE The Publ consisting years.
Th financial questions Controllin governme necessary findings m criticism, lic Accounts g of twelve he main fun matters raise , in a bid ng Officers ent institutio y to call befo made by th which he m s Committe (12) membe nction of the ed by the Au to seek ex of the va on audited b ore the PAC he Auditor G may have to o e (PAC) is ers elected fr e Committee uditor Gener xplanations arious gove by the Audi on the basis General in h offer.
a Parliame from the Hou e is to scrut ral for inves from the ernment Mi itor General s of the com his/her repo entary sessio use of Assem tinize the ac tigation.

Th Accounting inistries an l, whom it i mments, obs orts and par on committe mbly for fiv ccounting an he Committe g Officers o d any othe is considere ervations an rticularly an ee ve nd ee or er ed nd ny Rights an nd Powers o of the Comm mittee (PAC C) The followi Committee.
ing is an o over view o of the most t important powers (ri ights) of th he Page 8 • The Committee has the right to investigate or review all past, current and committed expenditures of government and organizations receiving funds from government.

• The Committee has the right to request, on its own initiatives, the Auditor General to perform specific review tasks.
• The Committee has the right of access to all financial information and other documents, as it deems necessary for its investigation except for those that are priviledged or secret in the narrowest sense of the law.

• The Committee has the right to call upon witnesses.

The Audit Office and the PAC form part of a broader relationship network in the public financial scrutiny and accountability reporting cycle.
Parliament has a responsibility to provide assurance to the taxpayers that their monies as well as public resources are being spent and managed by the Executive in an accountable, efficient and transparent manner.

The Office of the Auditor General and PAC play critical and mutually dependent roles in supporting the Parliamentary oversight function and enforcing robust financial management of public funds and resources by the public sector officials.
The mutual dependency of the functions of the Audit Office and PAC requires that they maintain congenial and strong relationship with each other.

However, it should be carefully managed to ensure that it does not compromise their independence.
6.0 GENERAL OBSERVATIONS Audit reporting is the foundation on which the Auditor General facilitates public sector accountability and is the medium whereby the legislative oversight bodies receive the information they need to exercise their oversight responsibilities, over the public sector officials.

Generally, I noticed that Ministries and Departments including Treasury do not reconcile their accounting records, monthly.
This has resulted to some double payments which eventually become over payments; salaries paid to officers who have left the government services.

All these payments went on for some months unnoticed due to unreconciled records.

For an example, the following special funds accounts closing balances, in the Treasury records, do not reconcile with the bank balances.
For instance, the accounts in the Treasury records cash book should be reflected under item 62 whilst the balances in the bank are/should be reflected under item 52.

However, these accounts are not reconciled.

Page 9 Disaster Relief Fund Item No.

52124 62121 Details Disaster Relief Fund Disaster Relief Fund Project Bank Balance Amount (E) -814 574.06 -1 597 332.04 7 746.56 Community Development Item No.
52131 62131 Details Community Development Fund Community Development Fund Bank Balance Amount (E) 92 998 289.12 -93 004 405.56 102 072 798.56 Regional Development Fund Item No.

52132 62132 Details Regional Development Fund Regional Development Fund Bank Balance Amount (E) 19 288 521.17 -17 517 335.07 10 345 805.60 Strategic Oil Reserve Fund Item No.
52157 62157 Details Strategic Oil Reserve Strategic Oil Reserve Fund Bank Balance Amount (E) 260 920 215.83 -260 920 215.83 409 649 638.66 Special Care Medical Aid Fund Item No.

52106 62106 Details Specialist Care Medical Aid Fund Specialist Care Medical Aid Fund Bank Balance Amount (E) 2 112 756.78 119 381 196.31 2 112 756.78 Japanese Aid Fund Item No.
52128 60224 62176 Details Japanese Aid Investment Japanese Aid Fund Japanese Aid Investment Bank Balance Amount (E) 24 839 164.09 59 745.27 -24 878 897.70 24 839 164.09 Also, Controlling Officers continue to demonstrate lavish spending as they continue to spend beyond the appropriated budget.
This is perpetrated by the lack of supervision by the Financial Controllers/Principal Accountants, in the Ministries and Departments who represent the Accountant General but do not play their role in monitoring the budget and advising the Controlling Officer on financial matters.

Page 10 6.1 Submission of Treasury Annual Accounts The Finance Management and Audit Act No.
18 of 1967, as amended in 1992, section 18 (ii) requires the Accountant General within six months after the end of each financial year, to sign and submit to the Auditor General the Government Accounts, showing fully the financial position of the Consolidated Fund and any other funds in the financial year ended on 31st March 2011.
If the Accountant General fails to submit the accounts within the six months period, he may request the Minister for Finance, in writing, to extend the submission period further for a period not exceeding two months.

The Accountant General submitted the annual financial statements of accounts for the year ended 31st March 2011 for the purposes of auditing on time.

The accounts were submitted on the 30th September 2011, as required by the Finance Management and Audit Act.
6.2 Financial Accountability Financial Accountability is about promoting and reporting publicly on the performance of public funds and operations of Ministries/Departments and other government agencies.

Public financial accountability requires that, government officials manage their finances prudently, integrate their financial and non- financial reporting, control the budget and report comprehensively on its performance and achievements with the appropriated funds, by Parliament.
It is therefore, prudent that an efficient system of internal controls be put in place to ensure that the tax payers moneys are spent in conformity with the existing financial policies, rules and regulations and that the moneys are spent for the intended purposes.

It should be noted that accountability, transparency and integrity of financial management are strong core pillars which support good corporate governance.
the expenditure derived from 7.0 GENERAL AUDIT COMMENTS ON GOVERNMENT RULES AND REGULATIONS The Ministry of Finance, in its endeavour to ensure that funds are used for its intended purposes and revenue is collected promptly and brought to account through the Accountant General, has put in place adequate policies rules and regulations and internal control systems to guide Ministries and Departments for the proper utilization and collection of funds.
These policies, rules and regulations and internal control systems are often side lined or not adhered to, by Ministries/Departments at the expense of the general economy and allowed waste, abuse and mismanagement of funds to occur under the pretext that they were fulfilling their ministerial or departmental mandates.

For an example:- Page 11 • They continue to pay salaries to public servants, who have exited the government service, beyond their last date of service.
• They continue to pay full salaries to officers who were granted study leave.

This results from non implementation of the salary staggering of the officer’s salary during the period of study.

• Advances made to public officers and over payments are no longer recovered by Ministries and Departments from terminal benefits of those who have left the government service, due to the prevailing Retirement Funds Act of 2005 which has no provision for these debts to be deducted.
• Also noted is that Controlling Officers do not acquaint themselves with prevailing policies rules and regulations which affect government business for compliance purposes.

This is reflected by the common non adherence to rules and regulations.

• The Ministry of Education allows teachers to occupy the schools houses free of charge (without payment of rent) and at the same time these teachers receive housing allowance, against laid down regulations.
• Various Capital Projects under spent their budgets because whilst they were still in progress, citing that implementation was suspended due to the liquidity crisis faced by government.

• Revenue collections are siphoned at the point of collection by sub collectors who are entrusted with the responsibility to collect the revenue.
• I have noted with concern that the Government Accounting System reflects an increase in the estimated and approved budget beyond the appropriation act, under recurrent and capital budget.

This situation reflects that the original approved budget was disturbed/tempered with.

I expect the revision of the budget to affect the revised budget and not the original budget whose authorization rests with Parliament, only.
• Lastly, government created and funded various development programmes for its citizens, to uplift their standard of living.

But moneys are often abused, defrauded and diverted from their primary purposes.

Thus the poverty line is worsening and adversely contributes to the rising crime rate.

Therefore the desired results are not achieved.


However, I did not make any comments on the under expenditures on recurrent budgets because it is viewed as savings and Controlling Officers are encouraged to strictly spend when there is a need/purpose.

Page 12 7.1 Unauthorised Write Offs Records revealed that the Accountant General has written off/cleared the closing balances of grants which were a contribution to the Capital Fund, without the approval of the Losses Committee.
According to the Finance Management and Audit Act, authorization of write offs rests with Principal Secretary, Ministry of Finance.

This is a serious anomaly which cannot be over looked because the Accountant General is a signatory to the government accounts/funds.

This act poses a high risk to the monies held by government whereby withdrawals can be made and on the other hand clearance/write offs of balances or transactions in the records occur without following the proper accounting procedures.
This is tantamount to conceal misstatement or fraud.

Page 13 The balances written off are shown below:- Unauthorised Writes Offs Item No.

 Subsidies to Capital Fund Taiwanese Constitutional Grant Japanese Constitutional Grant Dvokolwako Rural Water Scheme ADB loan Mbabane Road Rehab.
Purchase of Computers- Economic Planning S.D.

S.B.

Bank loan Chinese Piggery Grant Matsapha Dry Port Land Rehabilitation Grant Development Programme Grant Enhlambeni Water Supply World Bank Grant Communication Network Grant New International Airport MOAG Information System Siteki- Mhlumeni Road Lobamba Medical Equipment MOAG Fish Survey Project Feeder Roads & Rehab.
Of Armcos Search Camera for Police Rural Water Electrification Programme III Control of Allien Species Urban Development Project Siteki- Mhlumeni Road Upgrading Lomahasha Water Supply Grant (Taiwan) National Livestock Identification Promotion of Community Based Food Processing Construction of Post Entry Plant Quarantine Facility Ngwenya Mbabane Road Rehabilitation Medical Equipment and Furniture for TB Hospital Resettlement Fund Amount (E) (973,094.56 ) (3,406,554.02 ) 34,238.18 2 045 000.00 3,892,578.65 3,551,100.00 (232,352.18 ) (19,421,125.44 ) (3,566,958.95 ) (905,258.68 ) 2,329,152.32 (436,910.48) (1,000,000.00) 13,654,565.10 364,750.95 (2,584,628.82 ) 53,990.46 167,329.86 6,510,578.63 (508,027.43 ) 1,802,071.06 (2,878,202.21) (8,358,946.41 ) (11,055,227.80 ) (11,658,535.93 ) 262,622.24 240,144.68 (449,346.78 ) 5,143,618.42 1,581,606.03 30,517,767.90 Page 14 7.2 Advances To Public Officers One of the fringe benefits offered by government through the Ministry of Finance and the Accountant General, is to cater for the welfare of all its employees by affording them advances of all forms.
Whilst the other objective of the Ministry of Finance is to advise government on all fiscal matters so that annual estimates and appropriated funds are prepared and released as required by law.

It is my pleasure to report that, during the year under review the employees advance budget was spent within the statutory limit.

Legal Notice no.
Legal Notice no.

146 of 2000 set the limit of E40, 000, 000.00 as a budget of advances to public officers, whilst expenditure was E35, 040,135.04 thus resulting in some savings of E4 959 864.96 which is 12% of the total budget.
The advances paid to the public servants during the year ended 31st March 2011 are:- Description Car Advances Salaries Advances Study Loans Bank Car Loan Scheme Car Repairs Loan (Civil Servants) Comprehensive Insurance Loan Medical Aid Staff Uniform Advance Against Gratuity Seconded Study Loan Short Term Comprehensive Insurance Seconded Officers SNC Minister’s Hard Furnishing Loan Minister’s Security Loan Member of Parliament Security Grand Total Item 51001 51003 51004 51009 51015 51016 51018 51019 51020 51022 51023 51024 51025 51026 Amount Paid (E) 4 285 094.64 1 217 745.68 4 852 639.40 5 120.52 3 843 590.93 - 37 844.06 1 706 252.18 72 299.92 10 500 094.14 38 583.31 4 901 808.70 1 906 830.95 152 834.98 1 595 083.75 E35 040 135.04 7.3 Other Advances To Public Officers However, there were other advances granted to the public servants whose budget and sources of funding could not be ascertained.
I consider monies spent without budget provision to be unauthorized.

Further, some of the advances accounts have credit balances while others have been constant for three years.

(a) Other advances to Public Officers:- Description Officer’s Personal Account Surcharges Tour Advances – employees Item 51002 51005 51006 Amount Paid (E) -2 564 879.51 - 211 431.99 4 978 536.20 Page 15 Tour Advances – seconded officers Leave pay on departure TF146 Cheques issued net S.G.S.
only FDS (Tax advances) Grand Total 51007 51011 51013 51021 8 490.98 52 414.79 - 8 000.00 136 219 816.32 138 474 946.79 (b) Advances accounts which have credit balances are:- Description Officer’s Personal Account Surcharges TF146 Cheques issued net S.G.S.
only Comprehensive insurance loan Item 51002 51005 51013 51016 Amount Paid (E) -E2 564 879.51 -E 211 431.99 -E 8 000.00 -E 37 844.06 The Accountant General could not explain the occurrences of the balances reflected in the books because it implies government is owing some creditors.

(c) Advances accounts which have been constant for three (3) financial years.

(i.e.)

2008/09, 2009/10 and 2010/11.


Description Tour advances seconded officer’s Leave pay on departure TF146 Cheques issued not SGS only Item 51007 51011 51013 Amount Paid (E) E 8 490.98 E52 414.79 (E 8 000.00) Again, the Accountant General did not provide explanation on the operation of these accounts which appear to be dormant.

7.4 Bank Car Loan Scheme – Advance Account Number 51009 In 2005 Government contracted with the following banks to grant advances to its employees on its behalf.
The banks are:- • Nedbank (Swaziland) Limited • Standard Bank Swaziland • Swazi Bank • Swaziland Building Society The agreement reached with the banks, pertaining to the interest charged to the loans was that government would pay 1% interest at Nedbank and 1.5% at Standard bank as a subsidy of the loan.

However, it is disturbing to note that government records, at Treasury, do not disclose the expenditure in respect of subsidization by government, yet this is an expense borne by tax payers.
Moreover, the account code 51009 was created by Treasury for such an expenditure but to date, no disclosure has been made, except for an amount of E7 Page 16 080.00 which is a mis-posting of comprehensive insurance and has not been reconciled for the past two years.

8.0 RECURRENT REVENUE PERFORMANCE FOR THE YEAR ENDED 31ST MARCH 2011 Recurrent revenue collection which was estimated and approved by Parliament was E6 085 629 000.00 at the beginning of the financial year 2010/11.
Actual revenue collected amounted to E7 236 676 540.82 resulting in an overall over collection of E1 151 049 540.82 which translates to 19% above budgeted revenue.
Page 17 The recurrent revenue performance is tabulated as follows:- Recurrent Revenue Performance for the year ended 31st March 2011 Source Customs and excise duties Income Tax Graded Tax Estimated (E) 1,968,941,000.00 Actual (E) 2,631,433,168.50 Variance (E) 662,492,168.50 2,229,340,000.00 2,573,018,746.37 343,678,746.37 23,401,000.00 4,132,704.02 -19,268,295.98 Other Taxes and duties 1,453,811,000.00 1,373,189,689.70 -80,621,310.30 Motor Vehicle and drivers licences 80,807,000.00 20,603,214.04 -60,203,785.96 Business licences Other licences Judicial fines Rentals Sale of goods Sale of land and tittles Agricultural services fees 18,245,000.00 20,916,931.87 2,671,931.87 746,000.00 663,565.00 -82,435.00 15,977,000.00 28,910,461.33 12,933,461.33 17,157,000.00 7,723,023.20 -9,433,976.80 1,761,000.00 2,174,183.30 413,183.30 3,015,000.00 1,227,725.33 -1,787,274.67 379,000.00 430,224.00 51,224.00 Medical and hospital services fees 5,968,000.00 6,633,861.64 665,861.64 Educational services fees Immigration and travel fees Utilities service fees Other sundry fees Loan repayments Sundry departmental deposits Less dishonoured cheques Total 629,000.00 338,717.30 -290,282.70 22,098,000.00 25,200,181.56 3,102,181.56 26,000.00 65,016.00 39,016.00 217,279,000.00 525,882,743.84 308,603,743.84 26,042,000.00 15,402,180.09 -10,639,819.91 5,000.00 - -5,000.00 - -1,269,796.27 -1,269,796.27 6,085,627,000.00 7,236,676,540.82 1,151,049,540.82 Page 18 I am disappointed, to say the least, that revenue collection agencies continue to accept payments by cheques which are not bank guaranteed, despite my appeal to exercise precautionary measures because dishonoured cheques are not properly accounted Instead reconciliation of dishonoured cheques amounting to (E1 269 796.27) was done manually during the fiscal year.
the main government system, electronically.

for in 8.1 Recurrent Revenue Over Collection There were significant over collection of revenue ranging between 11% to 150% as compared with budget estimates in the fiscal year 2010/11 as reflected in the following revenue items.
Source of Revenue Medical and hospital services fees Agricultural services fees Immigration and travel fees Business licences Income Tax Sale of goods Customs and Excise duties Judiciary fines Other sundry fees Utilities services fees Amount in Percentage (%) 11% 14% 14% 15% 15% 23% 34% 81% 142% 150% Overcollection of revenue e g a t n e c r e P 160 140 120 100 80 60 40 20 0 gricultural services ... d hospital ... dical an migratio A Im Me n n a ax d travel... e T m Inco es ds o o nces d excise d... dicial fin ess lice ale of g er su usin ms an Oth B usto C Ju S n es dry fe Utilities service fees Sources of Revenue Page 19 It is noteworthy to encourage and motivate the revenue collecting agencies to continue the effort of collecting the revenue above the budget and such is a good work as government is currently battling with raising enough revenue to meet its financial obligations.
However the over collection should be accompanied by explanations, for justification.
8.2 Recurrent Revenue Under Collection There were also significant under collections of revenue ranging between 11% and 100% as compared with budget estimates in the financial year 2010/11 as reflected in the following revenue items:- Source of Revenue Other licences Loan repayments Educational services fees Rentals Sale of land and titles Motor vehicle and drivers licences Graded Tax Amount in Percentage (%) 11% 41% 46% 55% 59% 75% 82% Undercollection of revenue 90 80 70 60 50 40 30 20 10 0 e g a t n e c r e P Sources of Revenue Page 20 The recurrent revenue under collection is a result of poor service, delivery by public servants, inadequate/lack or control weakness, where revenue is siphoned at the point of collection.
The revenue collection agencies are encouraged to meet the budget estimates in future.

Therefore it should be noted that government is in dire need of revenue to fulfil its goals and objectives.

9.0 RECURRENT EXPENDITURE PERFORMANCE FOR THE YEAR ENDED 31ST MARCH 2011 Recurrent budget estimated and approved by Parliament at the beginning of the fiscal year amounted to E7,688,058,000.00.

During the year it was revised to E8,529,501,879.00 which reflects 11% increase to the original budget.
On the other hand the government accounting system indicates the approved estimate as E8,487,519,834.00 thus resulting in an over statement of E799,461,834.00.

The overall released funds during the financial year amounted to E8 014 162 513.00 whilst actual expenditure amounted to E8 046 878 829.59 resulting to an overall savings of E32 716 316.59.
Page 21 The recurrent expenditure performance is tabulated as follows:- Control Items 00 CTA vehicle charges 01 Personnel costs Approved Estimates (E) 413,846,210.00 3,912,202,889.00 Revised Provison (E) 442,038,313.00 3,876,174,624.00 Released Funds (E) 285,243,573.00 3,802,030,003.00 Actual Expenditure (E) 518,038,580.67 3,919,477,782.58 Above/below released funds (E) -232,795,007.67 -117,447,779.58 02 Travel, transport and communication 03 Drugs 04 Professional and special services 05 Rental (land, building and computer equipment) 06 Consumable materials and supplies 07 Durable materials and supplies 10 Grants and subdies – internal 11 Grants and subsidies- external 12 Public Debt Grand Total 245,957,093.00 224,973,697.00 266,868,631.00 198,638,791.00 231,106,722.00 141,158,360.00 262,336,136.58 132,330,585.73 - -32,716,316.59 Page 22 9.1 Recurrent Over Expenditure There were two items which recorded significant over expenditures.
They are C.T.A.

vehicle charges which recorded 82% and Travel Transport and Communications which recorded 14%.

I noted that the released funds under C.T.A.

vehicle charges in fiscal year 2010/11 was reduced as compared to the previous year due to the financial constraints faced by government.

However, this control item over spent by 82% because line ministries continued to spend beyond the released funds and budget appropriated by Parliament.
This indicates that there are no budgetary controls in the accounting system.
Control Item 00 CTA vehicle charges 02 Travel, transport and communication Amount in Percentage 82% 14% Recurrent Overexpenditure e g a t n e c r e P 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 00 CTA vehicle charges 02 Travel, transport and communication Control Item s Page 23 9.2 Public Debt The summary of recurrent expenditure reflects actual public debt expenditure as E408 855 208.91 whilst the statement of Public Debt with detailed transactions of the public debt has actual total expenditure of E2 543 348 000.00, resulting in a variance of E2 134 492.09 which Accountant General could not justify.
10.0 CAPITAL BUDGET PERFORMANCE BY ECONOMIC SECTOR FOR THE YEAR ENDED 31ST MARCH 2011 Capital budget estimated and approved by Parliament at the beginning of the fiscal year amounted to E2,550,776,000.00.

During the year it was revised to E2,900,776,000.00 which reflects 13.7% increase to the original budget.

On the other hand the government accounting system indicates the approved estimate as E2,990,776,000.00 resulting in an over statement of E350,000,000.00 over the original budget.
The total released funds for the year amounted to E2,077,015,496.00.

Actual overall expenditure amounted to E1,839,600,551.34 resulting in an under expenditure of E237, 414, 944.66 which is 11% of the funds released.
Page 24 Capital Budget Perfomance by Economic Sector 2010/2011 Sector Narration Approved Estimate (E) Revised Provision (E) Funds Released (E) Actual Expenditure (E) Variance (E) A E F G H M P R S T W X Agriculture, Forestry and Fisheries 324,526,000.00 324,526,000.00 153,364,275.00 148,570,268.19 4,794,006.81 Education and Training 179,209,000.00 179,209,000.00 129,468,655.00 123,788,479.42 Fuel and Energy 34,809,000.00 34,809,000.00 14,130,507.00 14,274,955.70 5,680,175.58 - 144,448.70 General Public Service 1,119,925,000.00 1,100,687,000.00 1,004,614,461.00 845,250,108.00 159,364,353.00 Health 261,752,000.00 261,752,000.00 103,886,008.00 91,321,338.99 Manufacturing and Mining 109,750,000.00 109,750,000.00 33,499,004.00 40,654,430.30 Public Order and Safety 189,454,000.00 189,454,000.00 102,483,566.00 106,293,336.80 12,564,669.01 - 7,155,426.30 - 3,809,770.80 Recreation, Culture and Religion 15,574,000.00 15,574,000.00 14,074,000.00 14,074,000.00 - Social Protection and Welfare 47,809,000.00 47,809,000.00 42,531,029.00 7,197,234.00 35,333,795.00 Transport and Communication 318,663,000.00 337,901,000.00 285,895,568.00 277,369,152.47 8,526,415.53 Water Resources Management Housing, Urban Development and Community Amenitie 39,405,000.00 39,405,000.00 9,946,880.00 9,455,017.28 491,862.72 259,900,000.00 259,900,000.00 183,121,543.00 161,352,230.19 21,769,312.81 Grand Total 2,900,776,000.00 2,900,776,000.00 2,077,015,496.00 1,839,600,551.34 237,414,944.66 10.1 Under Expenditure on Capital Funds There were significant under expenditures ranging from 11.89% to 83.08% when actual expenditure is compared with released funds for the financial year ending 31st March 2011.
The under expenditures were as a result of financial constraints faced by the government and funds were not available for the completion of projects yet implementation had commenced.
Page 25 The following sectors were affected:- Sector Narration X H G S Housing, Urban Development and Community Amenitie Health General Public Service Social Protection and Welfare Amount in Percentage 11.89 12.09 15.86 83.08 Under expenditure in capital project e g a t n e c r e P 90 80 70 60 50 40 30 20 10 0 Social Protection and Welfare General Public Service Housing, Urban Development and Community Amenitie Health Sector Page 26 10.2 Over Expenditure on Capital Funds However, only significant over expenditure of 21% were noted in the financial year ended 31st March 2011, under the manufacturing and mining sector.
The following are the projects whose funds appropriated by Parliament are either over stated or under stated in the government accounting system.

It is disturbing to note that the accounting system is tempered with regarding the funds initially authorized by Parliament and there is no clear explanation on the occurrence.
Project Code Project Name G46799 G50099 T35999 T36299 T45599 Millenium Project Rehab of Government Buildings Reh of Link roads Road Improvements Construction of Sikhuphe Link Roads Safety Estimate Book Amount (E) 356 000 000.00 103 302 000.00 50 000 000.00 20 000 000.00 Statement Amount/Accounting System (E) 706 000 000.00 102 712 000.00 Variance (E) 350 000 000.00 (590 000.00) 74 000 000.00 5 370 000.00 24 000 000.00 (14 630 000.00) 39 820 000.00 79 688 000.00 39 868.00 On the other hand despite that some Capital Projects budgets were not approved there was expenditure incurred.
I am concerned that budgetary controls are not enforced in the government accounting system.

That is, expenditure occurs even when there are no funds provided.

The following are the affected Projects:- (a) Project T30299 – SPTC Restructuring According to government estimates and the approved estimates column of the statement, there were no funds appropriated for this project, however, actual expenditure column showed expenditure of E3,169,273.04.
(b) Project T46199 – Replacement of Outside Broadcasting Vehicle According to government estimates and the approved estimates column of the statement, there were no funds appropriated for this project, however, actual expenditure column showed expenditure of E5,214,918.50.
(c) Project X49870 – Procurement of Tools and Equipment for Portable Water Schemes According to government estimates and the approved estimates column of the statement, there were no funds appropriated for this project, however, actual expenditure column showed expenditure of E8,447,250.00.
11.0 ACKNOWLEDGEMENT Page 27 I wish to express my appreciation to the members of my staff for co-operation during the past year and their hard work in the preparation of this report, despite the financial challenges faced by my office.

I also wish to express my appreciation for the co-operation given by the Accountant General and Treasury Department staff, the assistance and courtesy received from officials of all Government Ministries and Departments.
12.0 REFERENCE SHEETS ISSUED The following reference sheets were issued to the various Ministries and Departments in respect of reportable matters to be included in the Auditor General’s Report.
Below are the issued and outstanding reference sheets:- Ministry/Department Reference Sheets Issued Outstanding Reference and Regional and Planning Parliament Private and Cabinet Tourism and Environmental Affairs Police Deputy Prime Minister’s Office Foreign Affairs and International Co- operation Defence Tinkhundla Administration Natural Resources and Energy Agriculture Economic Development Housing and Urban Development Commerce Industry and Trade Education and Training Finance Labour and Social Security Public Service Information Communication Technology Elections Commission Health Judiciary Justice Correctional Services Home Affairs Public Works and Transport Total and Boundaries and 1 1 1 1 5 6 2 11 12 7 2 3 2 27 8 2 1 3 1 3 3 1 2 3 3 111 Sheets Nil Nil Nil Nil 1 5 Nil 3 3 Nil 1 Nil Nil 2 1 1 Nil Nil Nil 1 Nil Nil Nil 2 2 22 Page 28 The action by the PAC to impose fines to Controlling Officers for failure to reply promptly to audit reports has resulted in an improvement in the response rate.
In 2010/2011 there is a 20% outstanding reference sheet as compared with 41% for the previous year.

I hope this trend will continue in future and that Controlling Officers are now aware of their responsibilities in Public Finance, of managing, controlling and monitoring public resources in their custody, hence they will be more prudent in the utilization of state resources.

I highly commend all Controlling Officers who responded on time to observations and findings made by the Auditor General.
The non-response rate over the three year period is illustrated as follows:- Financial Year 2008/2009 2009/2010 2010/2011 Outstanding Reference Sheets (%) 46% 41% 20% Outstanding Response Rate in Percentage 46% 41% 20% Outstanding response rate percentage e g a t n e c r e P 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2008/2009 2009/2010 Financial Year 2010/2011 Page 29 PART B MINISTRIES AND DEPARTMENTS Page 30 HEAD: 02 CLERK OF PARLIAMENT Objectives: To assist members of the House of Parliament in their consideration of legislation and estimates of Government Revenue and Expenditure and to administer the affairs of Parliament.
13.0 UNAUTHORISED OVER EXPENDITURE ON RECURRENT VOTE Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) Actual/Committed Expenditure (E) 02 Personnel Costs (11) 46,857,578.00 51,542,464.11 Over Expenditure (E) 4,684,886.11 Over Expenditure (%) 10 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his response, referenced PAR/3/5 dated 12th December 2011, the Controlling Officer stated that the over expenditure was a result of the Ministry of Finance not releasing budgeted funds during the last month of 2011 financial year and the vacant posts, for 3 deceased officers, which were later replaced yet finances for these posts were already frozen by the Ministry of Finance.

While this clarity is appreciated there was no authorisation for the Ministry to over spend.
Further, the Controlling Officer filled the vacant posts knowing very well that funds were not available.

Page 31 HEAD: 03 PRIVATE AND CABINET OFFICES Objectives; To operate and support the offices of the Prime Minister and Cabinet.

14.0 UNAUTHORISED OVER EXPENDITURE ON RECURRENT VOTE Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).
However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.

Head Item 03 CTA Vehicle Charges (11) Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) Over Expenditure (%) 1,437,390.00 2,042,546.06 605,156.66 42 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his reply, referenced CO/MF 112/6/9 dated 9th December 2011, the Controlling Officer concurred with my observations and stated the causes of the over expenditure to have been that:- (a) Funds released were below the estimated budget.

(b) Hire of cars for hosting Regional Smart Partnership, National Dialogues and Global Leadership Foundation (GLF) members.

(c) Unbudgeted transport costs for a newly created Department for People smuggling and human trafficking.
However, the Controlling Officer did not mention the authority that allowed her to over spend.

Page 32 MINISTRY OF TOURISM AND ENVIRONMENTAL AFFAIRS HEAD: 04 Objectives: Tourism – To promote and sustain development of the Tourism Section.

Environment – To preserve the environment.


15.0 AUDIT INSPECTION: MINISTRY OF TOURISM AND ENVIRONMENTAL AFFAIRS An audit inspection was carried at the Ministry of Tourism and Environmental Affairs, for the financial years 2009/2010 and 2010/2011 and a report referenced T2/Vol.

I/85, dated 9th May 2011 issued to the Principal Secretary.
The response by the Principal Secretary referenced MTEA/2/8, dated 25 May 2011, was not satisfactory, with regard to the following paragraphs Salary Overpayment – E75 765.00 In my report, quoted above I drew the attention of the Controlling Officer, that a salary overpayment occurred to an officer who was on long-term study leave.
This officer, employee number 6262747, was granted paid study leave for three years, to pursue a Bachelor of Science Degree in meteorology, in Nairobi, Kenya, with effect from 13th September 2008 to 12th September 2011.
However, the officer received full salary for the period, 13th September 2009 to 31st May 2011 resulting to E75 765.00 overpayment, because of the non implementation of General Order A370 (i) Which dictates that officers on long study leave should earn full salary for the first twelve months, 75% of the basic salary for the next 12 months, 50% basic salary for the next twelve months and 25% of the basic salary for the remaining period of study.
Therefore, this employee’s basic salary was not reduced by 75% and 50% for the period of study, resulting in the overpayment of salary.
Page 33 The details of the overpayment of salaries are depicted below:- Staggering Period Period 2nd year salary staggering (75%) October 2009 to March 2011 October 2009 to March 2010 April 2010 to July 2010 August 2010 3rd year salary staggering (50%) September 2010 October 2010 to March 2011 October 2010 to March 2011 April 2011 May 2011 Basic Salary Basic Salary E Overpayment E 6 Months x 10 166.83 4 Months x 10 471.75 1 Month x 10 943.00 +1 885.00 back pay 1 Month x 10 943.00 6 Months x 10 943.00 1 Month x 11 271.25 Month x Total Overpayment E75 765.00 Nevertheless the Controlling Officer on receipt of my report effected deduction of the overpayment from the officer’s salary at E500.00, per month starting from June 2011, for the duration of 197 months, (16 years) up to the year 2026.
However, the response revealed that the officer had agreed to increase the installment once she returned in July 2011, but to date it has not been increased.

Further, I am concerned about the extreme leniency, by the Ministry, regarding the long recovery period, beyond the officers compulsory retirement date, 10th November 2023, yet the anomaly was due to laxity by both Ministry and the officer concerned.
My understanding is that under normal circumstances reasonable periods should be agreed upon for the good of both parties, government and employee.

Therefore, the action taken is not satisfactory since the Ministry did not ensure that the money is recovered before the officer exits the civil service, by statutory retirement.
It is noteworthy that it will be impossible to recover the overpayment from the officer’s pension because the Retirement Funds Act, 2005 does not allow this type of debt to be deducted.

Page 34 In his reply, referenced TEA 2/8/1, dated 19th December 2011, the Controlling Officer promised to increase the installment to E1 205.00 with effect from January 2012.

He attached a casualty to this effect.


However, while the efforts being made are applauded, the matter remains reportable since the money owed has not been recovered fully.

Page 35 HEAD: 05 POLICE Objectives: Law Enforcement – To prevent crime, to preserve lawful order and to maintain internal Security.

16.0 UNAUTHORISED OVER EXPENDITURE ON RECURRENT VOTE Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) 59,689,812.00 122,956,603.04 63,266,791.04 05 CTA Vehicle Charges (23) Over Expenditure (%) 106 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his response, the Controlling Officer stated the cause of the over is not expenditure to be the commensurate with the diverse operational activities falling under the ambit of CTA vehicle charges.

inadequate budget, allocated, which He was silent on whether he sought authority to over spend.

Page 36 HEAD: 06 DEPUTY PRIME MINISTER’S OFFICE Objectives: To operate and support the office of the Tinkhundla.
17.0 UNDER EXPENDITURE ON PROJECT S22099- DISASTER MANAGEMENT Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized, it retards development and economic growth.

I therefore consider under expenditures of 10% and above on capital projects, in a year, as not conducive to the development of a country.

An amount of E30 000 000.00 was approved as budget and released for the disaster relief management.
Actual expenditure amounted to E6 000 000.00 resulting in an under expenditure of 80% (E30 000 000.00 – E6 000 000.00) E24 000.000.00.

The Ministry is expected to update my office on the progress made and further justify the high savings.

In his reply, referenced DPM/NDMW/Head 58 dated 30th November 2011, the Controlling Officer agreed with the budget amounting to E30 000 000.00.
She also stated that on 2nd of September 2010, the office entered into a contract with Ngwane Mills for the supply of 20 000 metric tons of white maize (400 000 x 50kg) which amounted to E35 102 320.00.

So the auditors when they visited the office they had not started paying the supplier who, though had, started releasing the mealie meal, had not submitted the invoices which they had since done.

The reply implied that there was, actually, an over expenditure 17%, E35 102 320.00, when the payment was made.
This is a serious anomaly, which indicates non-reconciliation of accounts since it is expected that records at the close of financial year should depict a true picture of the state of affairs.

17.1 Under Expenditure on Project S33399- Assistance for the Disabled II Under expenditures are as serious as over expenditures in that if funds are locked up Page 37 and not utilized, retards development and economic growth.
I therefore consider under expenditures of 10 % and above on capital projects, in a year, as not conducive to the development of a country.

An amount of E3 191 000.00 was approved and only E888 000.00 was released for the development of the disability policy and for interventions targeted at people with disabilities.

Actual expenditure amounted to E777 234.00 resulting to an under expenditure of (888 000.00 – E777 234.00) E110 766.00 (12.4%).
The Ministry is expected to update my office on the progress of the project and justify the savings.

The Controlling Officer did not respond to my observations and has thus violated Financial and Accounting Instruction no.

0315 (ii) which states, clearly, that “It is the duty of all Accounting Officers to reply promptly to any queries addressed to them by the Auditor General, giving fully all the particulars or information desired”.
17.2 Under Expenditure On Project S34399- Purchase of vehicles Under expenditures are as serious as over expenditures in that if funds are not utilized as provided within the set timeframe.

The project becomes expensive at the end and therefore retards development and economic growth.

I therefore consider under expenditures of 10 % and above on capital projects, in a year, as not conducive to the development of a country.
An amount of E2 624 000.00 was approved and released for the purchase of 4 kombi-10-14 seater and 4 Double Cab 2WD.

The whole released amount of E2 624 000.00 was not utilized, thus resulting in savings of 100 %.

The Ministry is expected to explain the status of the project and failure to implement the project.
In his reply the Controlling Officer cited the reason for the under expenditure to have been the financial crisis which resulted in the suspension of government commitments through a Finance Circular dated 11th November 2010.

17.3 Under Expenditure on Project S33499- Orphaned and Vunerable Children Under expenditures are as serious as over expenditure in that if funds are locked up Page 38 and not utilized, retards development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital projects, in a year, as not conductive to the development of a country.

An amount of E11 574 000.00 was approved as budget but only E8 599 029.00 was released for coordinating children’s activities, construction of children centres, data management legislative reform and monitoring and evaluation.

The whole released amount of E8 599 029.00 was not utilised thus resulting in 100 % savings.
The Controlling Officer’s response, referenced DPM 2/4 dated 30th November 2011, stated that the under expenditure was due to the following reasons:- (i) More than half of the funds were for setting up the monitoring and evaluation systems which did not materialise because the staff member resigned and was only replaced 11 months later (1st September 2011), the unit is still going to set up a fully fledged M & E system for all the departments within the DPM’s office with the bias on monitoring children indicators.
(ii) On the other hand the Director of the Unit retired and was replaced a year later (1st September 2011).

The attrition of the staff had some financial implications in terms of absorption and also facilitating the utilization of the budget.
(iii) With the announcement of government being faced with financial challenges, the unit tried to save as much as possible and further consulted different donors who, unfortunately, have also announced that they are faced with some financial implications in terms of absorption and also facilitating the utilization of the budget.
(iv) One of the major capital projects was the establishment of a one stop centre which was rehabilitated and the procurement of equipment was suspended due to the announcement that Government was faced with financial challenges.

The procurement of the equipment and staff recruitment will definitely utilize the budget and there is a great need for the centre to be fully functional before the end of the next financial year.
(v) With the finalization of the National Plan of Action for Children (2011 – 2015), most of the activities will be fully implemented in the next financial years.

The five year National Plan of Action for Children provides a roadmap of activities that need to be implemented within a stipulated timeframe.

This therefore will facilitate the absorption of the funds, budgeted.
Besides the roadmap, the finalisation of the Children’s Page 39 Protection and Welfare Bill 2011 has also contributed to the under expenditure since after approval by Parliament the operationalization and dissemination of activities are expected to commence after it has become an act.
(vi) The staff recruitment and finalization of the National Plan of Action and the Children’s Bill (2011) will facilitate the absorption of the budget of the unit and further facilitate the coordination of all children’s activities in the country as per the mandate of the Unit.

This response reflects that there was poor planning and budgeting.
17.4 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) Actual/Committed Expenditure (E) 06 06 06 CTA Vehicle Charges (10) CTA Vehicle Charges (11) Personnel Costs (31) 439,830.00 491,206.09 492,768.00 544,874.60 52,106.60 11 - 96,352.58 96,352.58 100 Over Expenditure (E) 51,376.09 Over Expenditure (%) 12 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
The Controlling Officer concurred with the over expenditure on CTA charges, on activity 11 centre 1101 and activity 12 centre 1201.

The reason given was that the Central Transport Administration (CTA) submitted the bills after the closure of the financial year and therefore, it was impossible to make adjustments.

However he declined to give a response on activity 31 on the allegation that it was under Tinkhundla yet the government accounting system reflects this activity under the DPM’s office.
Page 40 MINISTRY OF FOREIGN AFFAIRS AND INTERNATIONAL COOPERATION HEAD: 07 Objectives: Maintenance of diplomatic relations with the International Community and promotion of international trade relations.

18.0 AUDIT INSPECTION: EMBASSY OF SWAZILAND – KUALA LUMPUR – MALAYSIA An audit inspection was carried out at the Embassy of Swaziland in Kuala Lumpur – Malaysia and a report referenced H19/Vol.I/29 dated 18th September, 2009 was issued to the Principal Secretary, Ministry of Foreign Affairs.
The Principal Secretary in his reply referenced MFAIC7/17 dated 08 December 2009, did not provide satisfactory explanations to my observations.

(a) Tour Advance In my report referenced above, I drew the attention of the Principal Secretary that the High Commissioner overrode internal controls by undertaking several official visits to countries of accreditation, without reporting to the Controlling Officer.
The total amount spent on the trips was RM167 245.50 As a result, the Head of Mission violated cabinet circular No.

1 dated 24th May, 2004 Section d (ii) which states clearly that “travel of Head of Mission within the areas of accreditation should be reported to the Principal Secretary, Ministry of Foreign Affairs before they are undertaken.
The initial response, by the Controlling Officer referenced SDHC-KL/02/5 dated 23rd November 2009, was not relevant since he referred to Circular No.2 of 2004 which, allegedly states that Heads of Missions need Authority only when travelling outside countries of accreditation.

Further I am not aware of this Circular he quoted.

Moreover, my concern relates to travel within the countries of accreditation and therefore the reply was not relevant.
(b) Subsistance Allowance and Airticket The Mission also paid subsistence allowance amounting to RM982.80 and an air ticket of RM6,636.00 on voucher numbers 060044 and 060021, which in total was equivalent to US$2,015.56 at an exchange rate of US$1=RM3.78.

The funds were spent for a trip undertaken by the Receptionist, a local staff member, who traveled Page 41 from Malaysia to Swaziland during the 40/40 celebrations.
During the audit inspection there was neither authority granted by the Principal Secretary, Ministry of Foreign Affairs local staff member/Receptionist to the celebrations.

Further, it was not clear what role was played by the receptionist, that necessitated her attendance, at the expense of government.

invitation of trip nor finance the the to The Principal Secretary did not respond to my observation.
(c) Foreign Service Allowance Advance I also pointed out that the High Commissioner authorised payment of foreign service allowance advances amounting to US$9,259.26 at the exchange rate of US$1=RM3.78 to Diplomatic staff members.

the High There was no written government regulation which authorised Commissioner to grant advances to staff members.

The only official who is mandated to grant advances, as per prescribed rules and regulations, is the Accountant General.
to RM35,000.00 which was equivalent The Foreign Service allowance advances were as follows:- Payee Voucher No.
100023 100049 Total Admin Attaché Third Secretary Repayment Period 6 months 4 months Amount RM 15,000.00 20,000.00 RM35,000.00 The High Commissioner violated General Order A211(2) which states that: “an application for an advance shall be made to the Accountant General through Head of Department, who shall take all reasonable steps to check the veracity of the application and he shall confirm that this has been done when forwarding the application”.

General Order No.
General Order No.

A211(4) further states that the recovery of advances shall be made in three equal and consecutive monthly instalments, starting in the month following that in which the advance was made.

But the Controlling Officer allowed the Officers to repay the advances over periods beyond the three months, which is stipulated in the regulations.
In his response quoted above, the Principal Secretary stated that the process of applying for salary advance from Accountant General takes a long time yet the reality being a case of emergency requiring urgent solutions.

The reply was not satisfactory because the Controlling Officer used discretion where regulations governing advances exist.
Page 42 18.1 Audit Inspection–Swaziland High Commission-London An audit inspection was carried out at the Swaziland High Commission in London and a management letter referenced H.15/Vol.X.48 dated 27th September 2010 was issued to the Principal Secretary, Ministry of Foreign Affairs.

The Principal Secretary’s response referenced MFAIC.07/17 dated 19th May 2011 was not satisfactory on the following issues.
(a) Business air ticket from London (Heathrow) to Manzini – Mr Allen Young I reported that a return air ticket which costed £5 879-00 was purchased by the Embassy in respect of Mr Allen Young for an official trip to Swaziland.

The Embassy made the payment on instruction from the Ministry of Foreign Affairs, through a memorandum, referenced MOFAIC.6/3 dated 28th April 2010.

At the time of the audit the expenditure incurred on Mr Young’s official trip to Swaziland was not re-imbursed to the Mission.
The amount of £5 879.00 was equivalent to E72 958.39 if the average exchange rate of British Pound to Lilangeni was E12.4093.

(b) Hotel Accommodation Reservation The Embassy paid an amount of £1 628.59 and £2 150.69 respectively to Elegant Travels to reserve hotel accommodation for His Excellency Honourable Prime Minister and his delegation.

The Mission was refunded an amount of £1 085.57 receipted in General Receipt No.3323091 dated 10th July 2009.
At the time of the audit an amount of £2 693.71 equivalent to E33 428.94 was still not yet re-imbursed to the mission.

(c) Request for Release of funds Amounting to £3 335.00 The Controlling Officer requested for release of funds from the Embassy to the King’s Office, amounting to £3 335.00 equivalent to E41 387.35.

The request for the release of funds was made through memorandum referenced MFAT.S87 dated 4th June 2009.
The money was to be collected by the Under Secretary, Ministry of Tourism and Environmental Affairs, employee number 3378094 and Counsellor in Pretoria High Commission employee number 3084689, who were on a special errand by the King’s Office.

At the time of the inspection the funds were still not reimbursed by the King’s Office.
Page 43 (d) Accommodation Expenses for Delegation in Copenhagen The Embassy withdrew from the bank, an amount of £25 000.00 equivalent to E310 250.00 to cater for accommodation expenses in respect of His Excellency the Honourable Prime Minister’s delegation whilst in Copenhagen.

This amount, £25 000.00 was drawn from the bank on 8th December 2009 by cheque No.

115013.
115013.

During the inspection I noted that only an amount of £11 240.86 equivalent to E139 499.07 had been reimbursed and receipted in General Receipt No.3712834.

At the time of the inspection the Mission was still awaiting reimbursement of the balance of £13 759.14 equivalent to E170 750.93 from the Ministry of Foreign Affairs.
(e) Hospital Bill - Chief Justice The Ministry of Foreign Affairs requested the Embassy to pay hospital bills amounting to £5 890.00, equivalent to E73 094.90 in respect of Chief Justice Richard Banda.

The Ministry promised to process the refund of £5 890.00 equivalent to E73 094.90 to the Embassy through memorandum referenced MFAC/9/25 dated 9th March 2010.

At the time of the inspection the amount of £5 890.00 equivalent to E73 094.90 was not reimbursed to the Embassy.
(f) Hotel Accommodation Deposit An amount of £14 781.73 equivalent to E183 441.27 was paid by the Embassy to Giga Gestioni (Excelsior Hotel) in respect of His Excellency the Honourable Prime Minister’s delegation for an official visit to Italy –Rome.

At the time of the audit the amount of £14 781.73 equivalent to E183 441.27 has not been reimbursed to the Mission.

(g) F.A.O.
(g) F.A.O.

Summit in Rome An amount of £25 000.00 equivalent to E310 250.00 was drawn by the Embassy from the bank on 11th November 2009 to cater for accommodation, transport and incidental expenses in respect of His Excellency the Prime Minister’s delegation whilst in Italy- Rome.

At the time of the inspection the Mission was still awaiting for reimbursement of £16 288.04 equivalent to E202 134.58 since £8711.96 equivalent to E108 109.33 had been receipted in General Receipt No.
3712823 dated 27th November 2009.

Page 44 (h) Hotel Accommodation Expenses Also, the Mission drew, from the bank, an amount of £6 761.34, equivalent to R83 908.23 and £3 082.00 equivalent to R38 247.62 on 23rd November 2009 and 14th December 2009 respectively to cater for hotel accommodation expenses in respect of His Excellency the Honourable Prime Minister’s delegation whilst in London.
The total amount reimbursed to the Mission at the time of the audit, was £458.19 equivalent to E5 686.14 and £195.50, equivalent to E2 426.16 receipted in General Receipt numbers 3712817 and 3712820 dated 24th November 2009 and 22nd December 2009 respectively.

The Mission was still anticipating a reimbursement of £9 189.65 equivalent to E11 4043.56.

To date I am not aware if these monies were re-imbursed.
And it is noteworthy that non-reimbursement in the relevant financial year impacts adversely on the Mission financial position.

18.2 Audit Inspection –Swaziland Embassy In Addis Ababa- Ethiopia An audit inspection was carried out at the Embassy and a report referenced H19F/45 dated 6th October 2010 was issued to the Principal Secretary Ministry of Foreign Affairs.

The Principal Secretary’s response referenced MFAIC.07/17 dated 23rd May 2011 was not satisfactory on the following issues.
(a) Expenditure For Diplomatic Bag In my report I pointed out that the diplomatic bag was, sometimes, used to transport documents which were not destined to the Ministry of Foreign Affairs.

Hence the total amount of Birr 6018.37 equivalent to E2 467.53 paid to DHL for transporting such documents was irregular because the items that were transported were not for official purposes.

The average exchange rate of Ethiopia Birr to Emalangeni was .41 Emalangeni.
Out of Birr 6 018.37, the Controlling Officer recovered Birr 603,41 equivalent to E247.40 leaving an outstanding amount of Birr 5 414.96 equivalent to E2 220.13.
The outstanding balance is analysed below:- VOUCHER 010027 INVOIC E 43774 SHIPMENT DATE 20/03/09 SENDER RECEIVER Allen M. Khumalo Embassy of SD Swaziland 020011 45008 29/04/09 Embassy of Swaziland Glory Hlatjwayo Finance COST OF SHIPMENT Birr272.34 Equivalent toE111.66 Birr269.83 Equivalent toE110.63 Page 45 020011 45008 29/04/09 Embassy of Swaziland 020011 44115 3/04/09 Embassy of Swaziland 03022 45562 13/05/09 Embassy of Swaziland 040017 46818 15/06/09 Embassy of Swaziland Lwali Msibi Swaziland Glory Hlatjwayo Finance Consultant Selispa –Rome Kunene Defence 040017 46818 15/06/09 Embassy of Swaziland Royal Palace 040017 47134 22/06/09 Embassy of Swaziland 040017 47134 22/06/09 Embassy of Swaziland 040017 47134 22/06/09 Embassy of Swaziland 040017 47393 26/06/09 Embassy of Swaziland 040017 47393 26/06/09 Embassy of Swaziland 060009 5000 24/08/09 Embassy of Swaziland 060009 5000 25/08/09 Embassy of Swaziland 110018 55067 9/01/10 Embassy of Swaziland Dumsile Justice Phindile Correctional Enock Msibi-RSP Manzini P. Station Glory Hlatjwayo Finance Glory Hlatjwayo Finance Veliyensom JHB Gcinangaye Kings office Phirble Correctional 110018 55067 21/01/10 Embassy of Swaziland Mbabane Taxi Rank 120020 55861 12/02/10 Embassy of Swaziland 120020 56184 12/02/10 Embassy of Swaziland Zinitha-Nkoyoyo Royal Palace Ericson Commission Ministry of Laboratory Total Birr269.83 Equivalent toE110.63 Birr269.83 Equivalent toE110.63 Birr377.43 Equivalent toE154.75 Birr272.34 Equivalent toE111.66 Birr272.34 Equivalent toE111.66 Birr272.34 Equivalent toE111.66 Birr272.34 Equivalent to E111.66 Birr272.34 Equivalent to E111.66 Birr272.34 Equivalent to E111.66 Birr272.34 Equivalent to E111.66 Birr278.61 Equivalent to E114.23 Birr465.86 Equivalent toE191.00 Birr330.45 Equivalent toE135.48 Birr324.80 Equivalent toE133.17 Birr324.80 Equivalent toE133.17 Birr324.80 Equivalent to E133.17 Birr 5 414.96 equivalent to E2 220.13 (b) Re-imbursable Expenditure Expenditure amounting to E325 535.47 was incurred by the Embassy to cater for officials from the Ministry of Defence and Security while in Addis Ababa, as follows:- Type of Expenditure Date Delegation Air tickets 14-12-2009 Peace & Council Security Amount paid E 306 018.72 Page 46 Hotel accommodation 30-03-2010 Ministry of Foreign Affairs 19 516.75 E325 535.47 Since the money was drawn on behalf of the Ministry of Defense and Security, it is imperative for the ministry to re-imburse the Embassy’s account before the end of the financial year because if delayed it would hinder the mission’s operations and distort the ministry’s end of year financial position.
In his response referenced MFAIC.07/17, dated 23rd May 2011, the Principal Secretary agreed with my observations and stated that the matter would be referred to the Mission’s Third Secretary.

The Controlling Officer’s response is disturbing and shows clear signs of relaxed attitude, taking into consideration that according to the appropriation act expenditure beyond the appropriated funds, by Parliament, are not permissible and therefore unauthorized.
Therefore these monies, quoted above, should be strictly reimbursed to the Mission.

(c) African Union Summit – Kampala I also noted that the High Commissioner in Addis Ababa attended the Summit of The African Union in Kampala, Uganda from 17th to 28 July 2010, twelve days and was paid subsistence allowance amounting to E23 520.00.
Of great concern was that at the end of tour the High Commissioner submitted a claim demanding re-imbursement in respect of hotel accommodation, amounting to E5 292.00, for his accommodation on the last night 28 July 2010, which was covered in my subsistence allowance and had already been paid from the subsistence allowance.
I did not get any clarification as to why was government made to pay the above amount, in view of the fact that receipt number 65565 dated 29 July 2010 indicated that hotel accommodation for the High Commissioner and his spouse, was paid including the 28th July 2010.

Though the Controlling Officer stated that recoveries would be made in his response referenced MFAIC.07/17 dated 23 May 2011, no evidence of recovery was furnished to my office for confirmation.
(d) Peace and Security Field Mission to Sudan 23-25 November 2009 I informed the Principal Secretary that expenditure amounting to E1 999.20 in respect of a claim for telecommunication expenses was inflated, resulting in an overpayment of E1765.00.

Page 47 A receipt from Bury Al-Fateh Hotel (Khartoun) dated 23rd November 2006 reflected that the Defence Attache bought a sim card and an air time which cost US$5 i.e.

E39.20 and US$25 i.e.

E196.00 respectively, at the exchange rate of 7.84.
The total amount was US$30.00 i.e.

E235.20 and not US$255 i.e E1 999.20, that was shown on the invoice.

The Claimant was the Defence Attache who participated in Peace and Security Field mission which was held in Sudan.

He departed from Addis Ababa on 23rd November 2009 and returned on 25th November 2009.

At the time of writing this report there was no evidence that the money was recovered.
(e) Residential Telephone Bills In September 2002 the Principal Secretary in the Ministry of Foreign Affairs and International Cooperation, in his effort to minimize the use of residential telephones in our Missions abroad, issued a memorandum referenced MFAT.6 dated 23 September 2002 setting the limit of E300.00 for Embassies in Africa.

Based on the average exchange rate, .41 the limit is Birr 732.00.
I communicated my concern to the Principal Secretary that diplomatic staff accredited to our mission, Addis Ababa, exceeded the set limit resulting in accumulated excess expenditure amounting to E59 354.16 in respect of telephone bills for 2009/2010 financial year, as shown below:- Admin Attache ACCOUN T# TEL.

NO.
SUBSCRIBER MONTH AMOUN T PAID (E) VARIA NCE (E) SET LIMIT PER MONTH (E) 530421 116625827 530421 116625827 530421 116625827 530421 530421 530421 530421 530421 530421 530421 116625827 116625827 116625827 116625827 116625827 116625827 116625827 Admin Attache Admin Attache Admin Attache Admin Attache Admin Attache Admin Attache Admin 530421 116625827 Attache February 2009 March 2009 300.00 1 123.58 823.58 300.00 1 182.95 882.95 April 2009 300.00 1 790.47 1 490.47 May 2009 June July 2009 August 2009 September 2009 October2009 November 2009 December 2009 Page 48 530421 116625827 Admin January 2010 300.00 1 979.73 Total 1 679.73 E12 395.39 COUNSELLOR ACCOUN T# TEL.
NO.
SUBSCRIB ER MONTH 527103 527103 527103 527103 527103 116611126 116611126 116611126 116611126 116611126 Counsellor Counsellor Counsellor Counsellor Counsellor 527103 116611126 Counsellor 527103 116611126 Counsellor 527103 116611126 Counsellor 527103 116611126 Counsellor 527103 116611126 Counsellor April 2009 May 2009 June 2009 Aug 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 SET LIMIT PER MONTH (E) 300.00 300.00 300.00 300.00 300.00 AMOUNT PAID (E) VARIA NCE (E) Total E9 912.10 FIRST SECRETARY ACCOUNT# TEL.
NO.
SUBSCRIBER MONTH 623802 623802 623802 623802 623802 623802 623802 623802 623802 623802 623802 114672223 114672223 114672223 114672223 114672223 114672223 FIRST SEC FIRST SEC FIRST SEC FIRST SEC FIRST SEC FIRST SEC 114672223 FIRST SEC 114672223 FIRST SEC 114672223 FIRST SEC 114672223 FIRST SEC 114672223 FIRST SEC March 2009 April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 December 2009 January 2010 February 2010 SET LIMIT PER MONTH (E) 300.00 300.00 300.00 300.00 300.00 300.00 AMOUNT PAID (E) 2 705.37 1 312.28 2 730.74 2 759.31 2 138.63 3 393.10 VARIANCE (E) Total E19 123.50 DEFENCE ATTACHE ACCOUNT# TEL.
NO.
SUBSCRIBER MONTH 2732793 2732793 2732793 2732793 2732793 116295761 Defense attaché 116295761 Defense attaché 116295761 Defense attaché 116295761 Defense attaché 116295761 Defense attaché March 2009 April 2009 May 2009 June 2009 July 2009 SET LIMIT PER MONTH (E) 300.00 300.00 300.00 300.00 300.00 AMOUNT PAID (E) VARIANCE (E) 3 869.98 976.23 1 838.24 1 720.20 1 533.76 3 569.98 676.23 1 538.24 1 420.20 1 233.76 Page 49 2732793 116295761 Defense attaché 2732793 116295761 Defense attaché 2732793 116295761 Defense attaché 2732793 116295761 Defense attaché 2732793 116295761 Defense attaché 2732793 116295761 Defense attaché August 2009 September 2009 October 2009 December 2009 January 2010 February Total E17 923.17 The Controlling Officer did not comment on the above serious poor telephone management and it is disturbing to note that if the above wastage is left uncontrolled and the money paid beyond the set limit is not recovered, government will end up not achieving its intended objectives, due to insufficient funds.
(f) Non-Existent Post I noted with concern that the post of an Assistant Accountant at the Mission was not reflected in the Establishment Register.

This post was previously occupied by a local staff, Bits it Endale, who resigned from the Mission on 31st December 2008 and another officer, who is a Swazi citizen, was recruited with effect from 10th March 2009.

In February 2010 the Ministry of Foreign Affairs issued a memorandum to the Ambassador (Ethiopia) referenced MFAIC.
9/25 dated 9th February 2010 advising him to disengage the Assistant Accountant with immediate effect since the posts of Accountancy Cadre are the sole prerogative of the Accountant General and the Civil Service Commission, but the Ambassador ignored the instruction.

The total unauthorized earnings comprising salaries and bus allowances during period March 2009 to December 2011, for financial year 2008/9, 2009/10, 2010/11 and 2011/12 is Birr 137 914.41, equivalent to E 58 021.08.
The analysis is as follows:- Financial Year Month Salary Received (Birr) Bus (Birr) Allowance Total Earnings (Birr) Avarage Exchange Rate 2008/9 March 2 910.00 Nil 2009 3 684.37 April 3 931.66 May 3 931.66 June 3 931.66 July 3 931.66 August 3 931.66 September October 3 931.66 November 3 931.66 3 931.66 December 92.04 104.32 102.86 135.00 129.13 128.57 128.57 135.00 Nil Page 50 2 910.00 3 776.41 4 035.98 4 034.52 4 066.66 4 060.79 4 060.23 4 060.23 4 066.66 3 931.66 .41 .41 .41 .41 .41 .41 .41 .41 .41 .41 Equivalence to Emalangeni (E) 1 183.10 1 548.33 1 654.75 1 654.15 1 667.33 1 664.92 1 664.69 1 664.69 1 667.33 1 611.98 2010/11 2011/12 January February March Total April May June July August September October November December January February March Total April May June July August September October November December Total Nil Nil 128.25 129.13 110.45 109.25 135.00 128.86 128.86 116.59 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil .42 .42 .42 .42 .42 .42 .42 .42 .42 .42 .42 .42 .43 .43 .43 .43 .43 .43 .43 .43 .43 .43 .43 .43 1 651.30 1 651.30 1 705.16 E19 805.93 1 754.98 1 747.13 1 746.71 1 757.44 1 754.87 1 754.87 1 749.71 1 700.74 1 700.74 1 741.30 1 741.30 1 741.30 E20 891.09 1 793.44 1 793.44 1 793.44 1 793.44 1 793.44 1 793.44 1 793.44 1 713.44 1 793.44 E16 140.96 (g) Expenditure for School Trip I also raised concern about an unauthorized expenditure in respect of an air ticket and accommodation for the Counselor’s child for the school trip to the Netherlands.
Flight and accommodation expenses amounting to E7 790.00 were incurred without authority from the Ministry of Public Service.

In response to the above serious violation of government regulations, the Controlling Officer expressed his view to recover the money paid for the Counselor’s child but did not state the commencement date of the deductions.

To date no update has been forwarded to my office about the recovery.
I consider the above act as a hoax aimed into making me believe that the unauthorized expenditure will be recovered.

18.3 Audit Inspection: Swaziland Embassy in Kuwait An audit inspection report, ref.

F14/Vol.10/62, dated 17th September 2010, presenting my audit findings on the above mentioned Embassy was issued to the Principal Secretary in the Ministry of Foreign Affairs and International Cooperation.

Page 51 However, the Controlling Officer in his response ref.

KWT.
KWT.

05 dated 8th October 2010, the following paragraphs were not addressed satisfactorily.

(a) Petty Cash In the report referenced above, I reported to the Principal Secretary that cash amounting to a sum of KD15,268.7000, equivalent to E434,699.89 at an (exchange rate – KD3.65 x USD1 x E7.80 = E28.47 per KD) was withdrawn from the Embassy coffers as petty cash to be used for petty expenditure.

The cash withdrawal was for the period 31st October 2009 and 31st December 2009.
However, this money could not be accounted for, because there were no cash slips or expenditure receipts made available for audit, to support the expenditure incurred.

The Controlling Officer in his response stated that a report on the expenditure of the petty cash was submitted to the Ministry of Foreign Affairs.

However, without the petty cash receipts, such response did not address the issue of the unsupported petty cash expenditure.

Therefore the petty cash expenditure was not justified.
The petty cash which could not be supported by cash receipts was in violation of Financial and Accounting Instructions 1406 which states that in the case of petty cash payments a cash sale slip will be sufficient to support the petty cash expenditure.
(b) Unsupported Expenditure In the same report, I also expressed concern that unsupported expenditure amounting to KD22 990.00 equivalent to E654 525.30 at an exchange rate of KD3.65xE7.80=E28.47 per KD was incurred in respect of passage allowance for the Ambassador’s trips.

The only documents attached to the payment vouchers were notes which acknowledged payments by the Travel Agent, Jumbo Tour and Travel.
The below expenditure is not authentic since it was not supported by invoices from the travel agent and therefore it was unaccounted for.

The Table showing the unsupported expenditure is as follows:- Voucher No.

Cheque No.
/ Cash 0030023 0030012 0040001 Cash Cash 326 Total Amount Paid (KD) 197, 000 277, 000 1, 632,000 Date Travel of Destination 22.06.09 07.05.09 29.06.09 Kuwait - United Arab Emirates Kuwait - United Arab Emirates Kuwait – Swaziland Page 52 0060021 007004 008002 008006 0080010 0090008 0090026 0110024 0120003 366 377 397 402 403 417 424 455 463 TOTAL 480, 000 1, 510,000 3, 010,000 1, 409,000 1, 822,000 115, 000 2, 198,000 2, 205,000 8, 135,000 22, 990,000 17.09.09 08.10.09 31.10.09 08.11.09 09.11.09 09.12.09 16.12.09 16.02.09 05.03.10 Kuwait – Qatar Kuwait -United Arab Emirates, Qatar, Yemen Kuwait – Swaziland via U.K. Swaziland – Kuwait Kuwait – Swaziland United Arab Emirates – Kuwait Kuwait – Swaziland via Qatar Kuwait – Swaziland Kuwait R.S.A., London, Canada, Belgium However, the Controlling Officer in his response neither addressed the issue of unsupported payment nor provided the invoices as supporting documentation for payments to justify the payment of E654 525.30 to the Travel Agent, which is a requirement by Financial and Accounting Instruction 0803.
(c) Unoccupied Leased House The Mission leased a house in Dahiya Mubarack Al Abdulla, Al Jaber Black st.106 in Kuwait for the Counselor before assumption of duty.

The lease is for the duration of five(5) years, commencing 1st May 2008 to 30th April 2013 and rental payment is KD 18 000.00 per annum which was equivalent to E512 460.00 @ an exchange rate of KD3.65 x USD1 x E7.80 = E28.47 per KD.
The House which is fully furnished by Government is still vacant even to date and Government for the past 3 years, 1st May 2008 to 30th April 2011 had suffered a loss of KD54 000.00 which was equivalent to E1 537 380.00 calculated at KD3.65 x USD1 x E7.80 = E28.47 per KD.

To date, I have neither been updated on the termination of the lease nor informed of the efforts made by the Principal Secretary to save Government from this loss.
It should be noted that the drain of Government resources is a thorn in the flesh of the taxpayers especially this time of dire need of cash flow.

(d) Double Payment Further, the mission double paid the annual rental payment of (KD18 000.00x2=KD36 000) = E1 024 920.00 of the unoccupied house set aside for the Counselor.

The rental paid for the period 1st May 2009 to 30th April 2010 amounted to KD36 000.00 instead of KD18 000.00.
The double payment resulted to overpayment of KD18 000.00=E512 460.00 The payments were made by cheques 242 and 492 amounting to KD18 000.00 Page 53 each.

Cheque No.242 was acknowledged as received by the Landlord on 3rd May 2009 and presented to the bank on 25th May 2009 whilst cheque No.492 was acknowledged on 3rd May 2010 and presented to the bank on 26th April 2010, exactly, after 12 months.
Despite that I advised the Principal Secretary, Ministry of Foreign Affairs and International Cooperation to recover the overpaid amount from the Land Lord, to date, I have not been apprised of the action taken.

Seemingly, there are apparent losses of funds in this Mission which are not taken seriously by the Embassy to be recovered.
The Controlling Officer did not respond to my observations and thus violated Financial and Accounting Instruction 0315 (ii) which prescribes that it is the duty of all Accounting Officers to reply promptly to any queries raised by the Auditor General, giving fully the particulars or information desired.

18.4 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) 07 Professional and Special Services (15) 105,000.00 117,927.55 12,927.55 Over Expenditure (%) 12 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
The Controlling Officer did not respond to my observations and thus violated Financial and Accounting Instruction 0315 (ii) which prescribes that it is the duty of all Accounting Officers to reply promptly to any queries raised by the Auditor General, giving fully the particulars or information desired.

18.5 Re: Audit Inspection: Ministry of Foreign Affairs and International Cooperation Page 54 An audit inspection report referenced F14/Vol.
IV/75, dated 23rd December 2010, presenting audit findings for the financial years 2009/2010 and 2010/2011, was issued to the Principal Secretary, Ministry of Foreign Affairs and International Cooperation.

However, the Controlling Officer’s response referenced MFAIC.

07.2, dated 24th May 2011, did not satisfactorily address the following issues.
(a) Exceeded Usage of Cell phone and Residential Telephone Limits In my report, the attention of the Principal Secretary was drawn to the excess payment, amounting to E142 400.84, which was paid by government in respect of the excess of the set limits, for mobile telephones and residential telephones which were provided by government in the fiscal year ended 31st March 2010.

The authority used by the Ministry to support the payment for the excess amounts was not relevant.
According to Establishment Circular No.2 of 2005, the excess amount should be paid by the officials concerned.

In addition, Finance Circular No.3 of 2005 paragraph 13 (a) states that any exceeded limit shall be deducted from the salary of the user on a monthly basis.
Below are tables showing the exceeded limits Employment Number: 2231644 Month Cell:6062909 Bill Circular Limit Excess April June July September October December January March Total E 7 113.53 6 858.19 8 322.14 9 325.54 9 779.15 5 127.97 5 162.58 6 549.26 E 4 500.00 4 500.00 4 500.00 4 500.00 4 500.00 4 500.00 4 500.00 4 500.00 E 2 613.53 2 358.19 3 822.14 4 825.54 5 279.15 627.97 662.58 2 049.26 E22 238.36 Landline: 5480552 Bill E 724.81 1 656.78 5 199.60 758.58 2 129.78 2 739.02 3 013.83 720.17 Circular Excess Overall Excess E 1 500.00 1 500.00 1 500.00 1 500.00 1 500.00 1 500.00 1 500.00 1 500.00 E - 156.78 3 699.60 - 629.78 1 239.02 1 513.83 - E7 239.01 E 2 613.53 2 514.97 7 521.74 4 825.54 5 908.93 1 866.99 2 176.41 2 049.26 E29 477.37 Page 55 Employment Number: 8742180 Cell: 76063101 Bill Authorised Limit Excess Amount Landline: 24090179 Landline: 24090025 Total E Authorised Limit Excess Amount 6,762.21 2,500.00 4,262.21 367.96 261.24 629.20 1,200.00 11,575.87 2,500.00 9,075.87 468.61 261.24 729.85 1,200.00 19,433.99 2,500.00 16,933.99 768.12 261.24 1,029.36 1,200.00 12,541.47 2,500.00 10,041.47 931.04 261.24 1,192.28 1,200.00 Month April May June July August 5,391.66 2,500.00 2,891.66 657.89 261.24 919.13 1,200.00 September 10,779.42 2,500.00 8,279.42 1,425.69 261.24 1,686.93 1,200.00 486.93 October 4,395.94 2,500.00 1,895.94 1,202.77 261.24 1,464.01 1,200.00 264.01 November 3,657.95 2,500.00 1,157.95 520.46 261.24 781.70 1,200.00 December 7,071.65 2,500.00 4,571.65 677.63 261.24 938.87 1,200.00 January 8,678.73 2,500.00 6,178.73 484.09 261.24 745.33 1,200.00 - - - February 7,543.58 2,500.00 5,043.58 1,391.91 261.24 1,653.15 1,200.00 453.15 March Total 9,880.80 2,500.00 7,380.80 E77,713.27 2,087.31 261.24 2,348.55 1,200.00 1,148.55 Page 56 - - - - - Overall Excess 4 262.21 9 075.87 16 933.99 10 041.47 2 891.66 8 766.35 2 159.95 1 157.95 4 571.65 6 178.73 5 496.73 8 529.35 E80 065.91 Employment Number: 3159983 Month April May June July August September October November December January February March April May June July August September Total Cell: 76063104 Bill Authorised Limit Excess Amount E - - - 914.50 1,987.40 5,844.31 9,140.70 3,646.96 3,981.50 - - - - - - 994.09 1,140.00 5,208.10 E32,857.56 In his initial response, the Controlling Officer stated that he had been granted a waiver by the Ministry of Public Service, to pay the excess amounts using public funds.
The authorization through memorandum referenced OS61/5 and dated 3rd October 2008 from Ministry of Public Service was granted to pay certain excesses of phone bills, incurred in the financial year 2008/2009, upon the request made by the Ministry.

In addition the Ministry of Public Service urged the Controlling Officer to comply with Circular No.2 of 2005, as is.

Therefore, my understanding is that this Ministry was not granted any permanent waiver of the terms of Circular No.2 of 2005.
The purpose of setting the maximum limits for the phone usage facility to contain telephone expenditure to an acceptable level was not effective.

As a result Government lost E142,400.84 in savings that could have been made, if the Ministry had spent within the authorized threshold.

After communicating my intention to report the matter to Parliament , the Controlling Offer, in his response referenced MFA 1C.07/2 dated 9th January 2012, remained steadfast on the initial response.
He expressed the understanding that the authority that was granted by the Ministry of Public Service was not confined to a particular period and financial year and thus it addressed the request of his Ministry to be afforded unlimited usage of hand held cellular phones and residential telephone bills.
Page 57 However, I still maintain that the authority granted only allowed the Ministry to pay the excess amounts at that particular period and succinctly stated that the Ministry should abide by the conditions of the Circular.

In this regard the Ministry was not exempted from the set limits.
(b) Payments made for unused MTN Mobile Phone Account number: Cell phone Number 76063120 I further reported to the Principal Secretary that the Ministry continued to service unused and unallocated MTN Mobile phone account number 76063120, at E175.00 per month, since the beginning of the fiscal year 2009/2010 to 2010/2011; from April 2009 to February 2011.

Hence the bills accumulated to E4 025.00 were paid, without any performance benefit/ to Government.
I am concerned that Government funds are abused and wasted for no services rendered since the expenditure incurred was not necessary and should have been avoided by merely closing this account and reopening it when the post is filled.

However, in his initial response, the Principal Secretary concurred with my finding.
He stated that the number had been reserved by the Ministry for the Deputy Chief of Protocol who was to be appointed shortly before the end of the financial year 2009/2010 and the appointment did not materialize after being pushed forward time and again by the relevant Ministry.

He further stated that the Ministry had since notified the service provider to remove the number from its account.
After indicating that the matter is referred to Parliament, the Controlling Officer in his response stated that the matter was discussed and understood by the auditors.

This indicates that no corrective action was taken about the loss incurred, except to terminate the contract as indicated in the initial response.
(c) Overtime Allowances (i) Overtime claims without Authorities I further drew the attention of the Principal Secretary to the terms of General Order A250 (2), in respect of the officers listed below, that by virtue of their grades, they are not entitled to claim overtime allowances unless a special request is approved by the Principal Secretary in the Ministry of Public Service.
Page 58 Overtime allowances without authority:- Designation Grade Period for Pay Date Officer’s Employment Number 3803936 Protocol Officer B7 overtime claim 16-04-2010 to 20-04-2010 05-04-2010 to 26- 04-2010 Fiscal year 06-09-2009 to 24- 10-2009 18-08-2009 to 30- 08-2009 01-07-2009 to 12- 07-2009 28-11-2008 to 30- 11-2008 Fiscal year 01/09/2008 to 09/11/2008 09-07-2008 to 31- 08-2008 Fiscal year 25-06-2007 to 03- 09-2007 01-05-2007 to 24- 06-2007 06-01-2007 to 13- 02-2007 Fiscal year 10-12-2006 to 18- 12-2006 31-07-06 to 10-09- 2006 03-08-2006 to 27- 08-2006 07-07-2006 to 23- 07-2006 18-05-2006 to 25- 05-2006 30-03-2006 to 24- 04-2006 Fiscal year 27-01-06 to 22-02- 2006 Page 59 Amount E 21 July 2010 6 173.48 21 May 2010 2 680.41 2010/2011 17 December 2009 23 November 2009 24 October 2009 24 April 2009 2009/2010 16 December 2008 23 October 2008 2008/2009 22 October 2007 23 July 2007 E8 853.89 5 993.77 6 685.89 4 568.00 2 280.00 E19 527.66 9 696.00 7 907.20 E17 603.20 8 172.90 5 448.60 23 April 2007 1 332.12 2007/2008 15 January 2007 24 November 2006 24 October 2006 24 August 2006 E14 953.62 2 233.26 7 535.36 4 305.92 4 027.52 24 July 2006 1 763.20 24 May 2006 6 496.00 2006/2007 24 March 2006 E26 361.26 5 512.32 24 February 2006 18 January 2006 16 December 2006 835.20 760.96 1 884.74 Total 3866933 Protocol Officer B7 Fiscal year 2006/2007 Fiscal year 2005/2006 E8 993.22 E96 292.85 22 May 2010 2 159.42 17 December 2009 24 November 2009 23 October 2009 24 September 2009 24 June 2009 3 654.40 3 875.88 5 647.72 6 007.61 2 373.12 21 July 2010 432.00 2009/2010 23 October 2008 23 June 2008 E24 150.15 3 144.00 3 234.26 23 May 2008 2 394.99 2008/2009 14 December 2007 22 November 2007 22 May 2007 22 October 2007 2007/2008 23 April 2007 E8 773.25 1 146.32 10 186.80 3 808.38 6 210.03 E21 351.53 1 418.02 17-02-2010 to 25- 02-2010 28-10-2009 to 08- 11-2009 11-09-2009 to 26- 10-2009 13-08-2009 to 30- 08-2009 31-05-2009 to 22- 07-2009 19-04-2009 to 21- 05-2009 22-01-2009 to 22- 01-2009 Fiscal year 04-08-2008 to 01- 09-2008 28-04-2008 to 08- 05-2008 12-03-2008 to 23- 04-2008 Fiscal year 05-11-2007 to 11- 11-2007 31-08-2007 to 21- 10-2007 23-03-2007 to 22- 04-2007 14-06-2007 to 28- 08-2007 Fiscal year 06-12-2006 to 22- 02-2007 Total E55 692.95 I further expressed my concern on how the above officers were paid overtime allowances without the appropriate authority from the Ministry of Public Service.
Notable was that the overtime claims were processed and passed by Accountant General even though there was no authority from the Ministry of Public Service.

To date I am not made aware of any recovery of the above unauthorized overtime allowances.

However, in his initial response, the Controlling Officer concurred with my findings and conceded the anomaly.
He stated that the implicated officers had been approached about the matter and were made aware that the funds Page 60 have to be refunded to Government since they were not supposed to benefit without the approval of the Ministry of Public Service.
As an update on the matter, in his reply, the Controlling Officer informed me that he approached the implicated officers about the issue but they expressed their view that the overtime claims were duly authorized and they would seek legal redress to avert recovery.

In that regard the Ministry is still consulting with the relevant Ministry on the way forward on this issue.

However no evidence has been produced to confirm authorization of the over time, by the Ministry of Public Service.
According to government regulations expenditure incurred without proper authorization is not authorized.

(ii) Overtime Allowances paid to Chauffeur I also reported to the Principal Secretary that an overtime allowance, of E2196.89 in the month of May 2009, was received by the Chauffeur employment number: 3180039 who in lieu of overtime allowance, gets monthly Chauffeur Allowance of 35% of the basic salary as per Finance Circular no.

1 of 2009.
1 of 2009.

As a result the overtime paid to the employee constitutes an overpayment that should be recovered.

Therefore, the employee was not entitled to overtime allowance because he receives a monthly overtime pay which is included in his monthly gross salary.

I am concerned that my advice to the Principal Secretary, Ministry of Foreign Affairs and International Cooperation to recover the irregular overtime allowance from the officer, was not considered.
Hence, the Financial and Accounting Instructions, section 0509 that prescribes prompt recovery of overpayment, was grossly violated by the Principal Secretary, Ministry of Foreign Affairs and International Cooperation.

In his response, the Controlling Officer justified this matter and stated that “the overtime allowance (money) was paid to the officer after being engaged in an Inter State Politics and Diplomacy Committee which was hosted by SADC.
The organizers of the meeting agreed that all officers working during the said meeting would be compensated hence the payment.” The Controlling Officer promised to recover the money from the Chauffeur.

(iii) Unsupported Overtime Payments I pointed out that overtime allowances amounting to E161, 370.44 were paid in the fiscal year 2009/10 without the relevant authorisation by Ministry of Public Page 61 Service and supporting documents, to confirm that the extra hours were indeed worked.
The unauthorised overtime are shown below: Employment Number 3319778 3491140 3865011 4201038 6196370 3576151 3180039 3318904 3319778 3442108 3491140 3711510 3837731 4694339 8903622 5233133 9046865 39794138 3866933 4201038 4443803 6196370 3576151 39924861 3318904 3711510 3837731 8903622 5233133 Designation Driver Accountant Personal Secretary I Personal Secretary Assistant Protocol Officer Sub – Total Personal Secretary Chauffer Messenger Driver Cleaner Accountant Messenger Cleaner Clerical Officer Messenger Assistant Protocol Officer Personal Secretary I Assistant Political Analyst II Protocol Officer Personal Secretary Assistant Protocol Assistant Protocol Officer Sub – Total Personal Secretary First Secretary Messenger Messenger Period of Overtime claimed 11/12/2008 to 22/02/2009 April, 2009 28/02/2009 to 22/03/2009 April, 2009 Month Overtime Paid E 9 353.49 2 240.55 05/07/2008 to 28/02/2009 April, 2009 2 650.79 26/12/2008 to 21/01/2009 April, 2009 3 228.16 23/01/2009 to 28/01/2009 April, 2009 1 770.31 19 243.30 26/03/2009 to 30/03/2009 May, 2009 27/03/2009 to 30/03/2009 May, 2009 28/03/2009 to 30/03/2009 May, 2009 07/03/2009 to 20/04/2009 May, 2009 04/04/2009 to 20/04/2009 May, 2009 28/03/2009 to 30/03/2009 May, 2009 28/03/2009 to 30/03/2009 May, 2009 28/03/2009 to 31/03/2009 May, 2009 28/03/2009 to 30/03/2009 May, 2009 28/03/2009 to 30/03/2009 May, 2009 2 036.37 2 196.89 8 57.28 9 181.79 744.58 2 393.75 778.63 580.19 956.28 857.28 28/03/2009 to 30/03/2009 May, 2009 2 995.84 26/03/2009 to 31/03/2009 May, 2009 1 995.15 28/03/2009 to 30/03/2009 May, 2009 20/02/2009 to 20/04/2009 May, 2009 3 406.56 8 973.36 18/03/2009 to 30/03/2009 May, 2009 2 208.91 01/03/2009 to 31/03/2009 May, 2009 6 195.63 26/03/2008 to 20/03/2009 May, 2009 19/04/2009 to 19/04/2009 17/04/2009 to 19/04/2009 19/04/2009 to 19/04/2009 19/04/2009 to 19/04/2009 June, 2009 June, 2009 June, 2009 June, 2009 7 223.74 E53 582.23 1 193.74 554.74 534.82 534.82 323.94 566.28 1 063.04 Cleaner Messenger Assistant 19/04/2009 to 19/04/2009 19/04/2009 to
 19/04/2009 19/04/2009 to 19/04/2009 June, 2009 June, 2009 June, 2009 Page 62 3866933 4443803 6196370 5233133 3803936 6196370 Protocol Protocol Officer Assistant Protocol Assistant Protocol Officer Sub – Total Assistant Protocol Sub – Total Principal Protocol Officer Assistant Protocol Officer Sub – Total 19/04/2009 to 21/05/2009 June, 2009 2 373.12 04/04/2009 to 21/04/2009 June, 2009 4 894.89 18/04/2009 to 19/04/2009 June, 2009 19/04/2009 to 20/04/2009 July, 2009 01/07/2009 to 12/07/2009 09/07/2009 to 13/07/2009 September2 009 September 2009 39924861 First Secretary 12/08/2009 to 13/08/2009 3318904 Messenger 12/08/2009 to 13/08/2009 3415867 Accountant 22/08/2009 to 29/08/2009 3430767 6196370 3576151 3521326 3527504 Security Officer Assistant Protocol Officer Sub – Total Personal Secretary Sub – Total Personal Secretary Personal Secretary 22/08/2009 to 30/08/2009 07/08/2009 to 15/08/2009 28/08/2009 to 31/08/2009 07/11/2009 to 08/11/2009 06/11/2009 to 18/11/2009 3803936 Protocol Officer 06/09/2009 to 24/10/2009 3866933 3576151 Protocol Officer Sub – Total Personal Secretary 28/10/2009 to 08/11/2009 18/07/2009 to 20/07/2009 39924861 First Secretary 17/0772009 to 20/07/2009 3318904 Messenger 17/07/2009 to 20/07/2009 3375118 Cleaner 05/12/2009 to 13/12/2009 3381694 Cleaner 05/09/2009 to 31/10/2009 3442108 Cleaner 05/12/2009 to 13/12/2009 3711510 Messenger 17/07/2009 to 20/07/2009 3837731 Cleaner 18/07/2009 to 20/07/2009 October, 2009 October, 2009 October, 2009 October, 2009 October, 2009 November 2009 December 2009 December 2009 December 2009 December 2009 January, 2010 January, 2010 January, 2010 January, 2010 January, 2010 January, 2010 January, 2010 January, 2010 Page 63 1 619.27 E13 658.66 1 860.32 E1 860.32 4 568.00 1 489.02 E6 057.02 705.90 211.31 1 144.45 805.98 2 577.15 E5 444.79 3 017.81 E3 017.81 957.33 1 290.92 5 993.77 3 654.40 E11 896.42 2 319.88 2 658.89 933.32 551.06 1 510.76 638.96 1 285.52 720.18 3521326 4894711 5233133 39794138 Personal Secretary
 Assistant Political Officer Assistant Protocol Officer Assistant Social Political Analyst II Sub – Total 16/12/2009 to 19/12/2009 17/07/2009 to 20/07/2009 17/12/2009 to 19/12/2009 18/07/2009 to 20/07/2009 39924861 First Secretary 17/12/2009 to 19/12/2009 3318904 Messenger 17/12/2009 to 19/12/2009 3711510 Messenger 16/12/2009 to 19/12/2009 January, 2010 January, 2010 January, 2010 January, 2010 February, 2010 February, 2010 February, 2010 February, 2010 February, 2010 8903622 3521326 4694339 3803936 6196370 4307529 3318904 3375118 3711510 4585822 8903622 2568742 3375118 3381694 9751631 3527504 4443803 Messenger Personal Secretary Sub – Total Clerical Officer Principal protocol officer Assistant Protocol Officer Personal Secretary I Sub-Total Messenger Cleaner Messenger Senior Clerical Officer Messenger 17/12/2009 to 19/12/2009 16/12/2009 to 19/12/2009 - March, 2010 15/12/2009 to 20/12/2009 March, 2010 14/02/2010 to 27/02/2010 March, 2010 - March, 2010 20/02/2010 to 28/02/2010 April, 2010 13/02/2010 to 14/02/2010 April, 2010 20/02/2010 to 28/02/2010 April, 2010 20/02/2010 to 28/02/2010 April, 2010 20/02/2010 to 28/02/2010 April, 2010 Sub – Total Night watchman 24/04/2010 to 26/04/2010 May, 2010 03/04/2010 to 11/04/2010 May, 2010 Cleaner 06/03/2010 to 11/04/2010 May, 2010 Cleaner Assistant Accountant Personal Secretary I Assistant Protocol Officer 01/03/2010 to 17/04/2010 May, 2010 08/05/2010 to 09/05/2010 May, 2010 17/03/2010 to 30/03/2010 May, 2010 Sub – Total Overall Total Sub – Total Overall Total Page 64 1 423.26 3 030.72 1 785.96 2 462.46 E19 320.97 1 552.98 528.29 686.78 475.47 1 423.26 E4 666.78 1 483.20 4 097.36 1 718.10 2 654.10 E9 952.76 915.72 275.53 915.72 1 349.04 915.72 E4 371.73 742.50 588.42 1 443.03 1 273.86 1 604.68 2 645.16 E8 297.65 E161 370.44 The Principal Secretary, Ministry of Foreign Affairs and International Cooperation, did not comply with the General Order A250, which clearly states that “it shall be the responsibility of Heads of Departments
 to ensure that: (a) Where overtime is to be worked, it is necessary, properly authorised in advance………., and (b) A record of all overtime duty should be kept and will be subjected to audit inspection/query.” Furthermore, I requested the Principal Secretary, Ministry of Foreign Affairs and International Cooperation to furnish my office with the relevant supporting documents of the above overtime allowance payments, for audit review and authenticate the necessity of working extended hours (overtime hours).
The Principal Secretary, did not provide my office with the supporting documents for the overtime allowances.
However, in his response, he stated that “the Ministry submitted that the lack of supporting documents for these overtime claims was a result of improper record keeping by the Human Resources office of the same Ministry.” (d) Unauthorised Petty Cash Expenditure In my report referenced above, I drew the attention of the Principal Secretary about the petty cash of E4 519.49 which was spent on unauthorized expenditure in the financial year 2009/2010.

According to the Imprest Warrant No.


43 of 2009/2010 from Accountant General/ Treasury Department, the petty cash funds were to be used for the buying of newspapers for the office and Embassies, and tea groceries for the office.

However, the petty cash was diverted to purchase items which were not authorized in the imprest warrant.

Thus it simply shows that the Ministry was handling an excessive amount of petty cash on hand, which was then being used for unauthorized petty cash expenditure.
The analysis of unauthorized petty cash expenditure in the fiscal year is depicted below.
Unauthorised Petty Cash Expenditure Month 04 Voucher Number 040070 Cheque Number 421514 Payee SPTC 040002 412144 Tikhetsele AM wholesale Inter rent Government sales tax Bob’s Midas Page 65 Item Description Amount Refilling Tranking Machine M:M Key Adaptor plug Petrol Registered parcel for Minister Cable Ties 500.00 13.90 160.00 420.00 60.00 60.00 05 050018 435801 Cash Build 06 060005 448066 Webster’s Shoprite Double CY1 Deadlock and 3L lock 1X 3 Quire note book Brown cover for portrait of PM Key Hole Security Key PC System USB for the ministry 07 070056 469134 Cash Build 07 070022 070021 08 080014 477153 Clicks Tax De Fronteira Inter Rent Portagem De Maputo Tikhetsele General Dealer Inter Rent Portagem De Maputo Fronteira Taxade Portagem De Maputo Inter Rent Direcsao Geral DAS Fronteira Taxade P/Pan imbal – white SCC cistern universal white & fittings cistern semi close couple Duracell plus AAA4 and Safeway adaptor Petrol and toll gates to Maputo Petrol and toll gates to Maputo Petrol and toll gates to Maputo Mortice lock set Toll gates to Maputo Toll gates to Maputo Toll gates to Maputo Petrol and toll gates to Maputo Petrol and toll gates to Maputo Toll gates to Maputo Petrol and toll gates to Maputo 09 11 090063 517422 Cellular Choice Fronteira Taxade USB for the Ministry Toll gates to Maputo 110058 54507 110022 518283 Cash Build Motors spares Apollo Services C N A Options (Pty) Ltd Webster’s Multi switched plugs Cable ties Ribbons Christmas Cards 4 GB Flash Office Stationery 1 213.90 209.90 209.90 14.50 1.79 12.00 195.00 223.29 571.95 79.95 17.00 310.00 100.00 69.90 13.50 20.00 17.00 1 199.30 20.00 400.00 10.00 17.00 E447.00 150.00 95.00 E245.00 121.95 120.00 14.95 299.90 190.00 36.30 E783.10 10.00 12 120032 539536 Direcqad Gaal DAS ALTADEGAS Chumana.
Com Page 66 Boarder pass to Maputo Nokia Charge for US 80.00 120046 532605 Total Overall Portagem De Maputo Fronteira Taxade Ever Green Trading Political Petrol to Maputo Toll gates to Maputo Duracell Batteries for PS’s Mouse 40.00 68.00 20.00 E218.00 E4 519.49 The Controlling Officer, in his initial response concurred with my findings.
He said that the reason to purchase some of the listed items, above, is that when applying for the imprest, it was mentioned to the office of the Accountant General that sometimes the petty cash is used to buy incidental items.

The words incidental items were not included in the Warrant issued by the Accountant General.

The Controlling Officer again concurred with my findings and regretted the use of funds for items not listed on the imprest warrant.
(e) Undelivered Furniture I reported to the Principal Secretary that the Ministry paid an amount of E 286 900.00 in respect of furniture which was not delivered.

The undelivered furniture items were acquired from CITI Import and Export (Pty) Ltd, where invoice number 07771, dated 15 March 2010, amounting to E1 546 846.00 was fully paid by the Ministry while part delivery had been made by the supplier.

Attached to the invoice was an unsigned and undated delivery note, number: 0833, 0835, and 0836.
The payment was processed with voucher number: 120093 on the 18th March 2010.

Moreover, it transpired that CITI GROUP HOLDINGS was fully paid after a partial delivery and during the audit inspection the audit team confirmed that two wooden drawers, for Personal Secretary – SADC Director’s office, were not yet delivered.

Also, I noted that this purchase was made towards the end of the financial year 2009/2010.

This reflected that the intention behind was only to exhaust the released budget provision.
It is disturbing to note that the supplier was fully paid before the furniture items were fully delivered.

This means that the supplier used government funds to finance the purchase order before delivery.
The analysis of undelivered durable items is depicted below: Purchase d items 95 Delivered items 60 Differen ce 35 Item description Payee Leather arm chairs Citi Import & Export (Pty) Ltd Citi Import & Export Unit price E 2 600.00 Total Amount E 91 000.00 2 950.00 64 900.00 55 33 22 Leather swivel Page 67 19 53 5 1 4 2 15 33 4 0 3 1 4 20 1 1 1 1 chairs Solid wood desk set Citi Import & Export (Pty) Ltd (Pty) Ltd Citi Import & Export (Pty) Ltd Citi Import & Export (Pty) Ltd Citi Import & Export (Pty) Ltd Citi Import & Export (Pty) Ltd Citi Import & Export (Pty) Ltd Filing cabinet Credenza 1800W 450d 760H Bar fridge cabinet Coffee table Executive Board Chairman High Back Swivel chair with adjustable height 2 150.00 8 600.00 5 000.00 100 000.00 15000.00 15000.00 1 200.00 1 200.00 2 200.00 2 200.00 4 000.00 4 000.00 TOTAL E286 900.00 In his belated reply, the Controlling Officer claimed that the audit team had miscalculated the furniture items and that the cheque was withheld, but this was not the presentation given to the audit team during the audit inspection.
The reply was not convincing because when a recount was performed in August 2010, the Audit Team came up with the same findings.

It is worth mentioning that my concern is that the Ministry prepaid before delivery of the furniture against government Regulations and this was confirmed by the bank transfer which was made on 30th March 2010.

(f) Uniform Record In my report I pointed out that the Uniform Record was not up to date, and was last recorded in 2004.
Moreover, a control weakness was noted when uniforms amounting E50, 828.70 were purchased from LN Swaziland Cleaning Materials, during the financial year 2009/2010.

During the inspection there were no records maintained showing delivery and issue of the uniforms.

Hence, it was impossible to ascertain whether the uniforms purchased, by the Ministry of Foreign Affairs and International Cooperation, were delivered and issued to the deserving officers, as required by the relevant Circulars and General Orders.
The details of payments during the financial year 2009/2010 are depicted below.

Voucher No.

090094 100012 Cheque No.
506654 506507 030053 405794 030051 405792 030052 405793 120067 393624 Payee Item descriptions Amount LN Swaziland Cleaning Supplies Bonizulu Masuku (Temporary Chauffeur) Nkosinamandla Nhlabatsi (Chauffeur) Samuel D. Mavuso (Chauffeur) Lucas Matsebula (Chauffeur ) Isaiah L. Dlamini (Temporary E Uniforms 1X3 Piece Suit 50 828.70 2 369.54 1X Carducci Suit 2 115.67 1X Suit 2 115.67 1X Black Suit 2 115.67 1X Yellow Suit 2 100.00 Page 68 Total Chauffeur) E61 645.25 In his belated response, the Controlling Officer said that the uniforms were ordered and duly delivered, but no supporting evidence provided.
It is noteworthy that the spending pattern, by this Ministry, reflects that there is minimal adherence to government regulations and lack of accountability.

Page 69 HEAD: 08 DEFENCE Objectives: To ensure the security of the country.

19.0 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).
The Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.

Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) 08 08 CTA Vehicle Charges (11) CTA Vehicle Charge (12) 560,542.00 3,094,277.76 2,533,735.76 19,112,990.00 76,658,865.81 57,545,875.81 301 Over Expenditure (%) 452 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his response the Controlling Officer stated the various causes of the over expenditure on CTA charges that are:- Activity 12 • The hiring of 50 motor vehicles that were later recalled early January 2011.

• Failure by CTA to implement numerous requests by the Ministry for boarding vehicles.

• Added military operations that were not budgeted for.

Activity 11 • Was caused by the intensive farming after hiring of the farm Manager.
Page 70 He also pointed out that the situation was a result of the reduction of funds released by 50% from the approved budget.

However, the authority that allowed the Ministry to overspend was not mentioned/produced.
Page 71 MINISTRY OF TINKHUNDLA AND REGIONAL DEVELOPMENT HEAD: 09 Objectives: To operate and support the office of the Tinkhundla, promote Regional Development and Youth Empowerment, Implement the Decentralization policy and co-ordinate, and promote economically sustainable youth programmes through spots and culture 20.0 AUDIT INSPECTION: KHUBUTHA INKHUNDLA An audit inspection was conducted at Khubutha Inkhundla on 19th August 2009 and a report referenced N15/Vol.VIII/77 dated 19th October 2009 was issued to the Principal Secretary in the Ministry of Tinkhundla Administration and Development.
(a) Purchase of Hardware Material – Kandlovu Youth Association In my report referenced above, I drew the attention of Controlling Officer that fencing and watering material amounting to E16 713.00 for a vegetable production project, was lying idle at Ezishineni Umphakatsi, allegedly because the members of the above Association deserted the above vegetable project in order to further their studies.
The items were purchased on the 13th March 2008 but during the physical verification, 19th August 2009, they were still found lying idle and unused.

Amongst the materials purchased, there were 3 diamond mesh fencing material valued at E3 757.00 that were stolen from the consignment listed below:- Item Quantity Unit Price (E) Total Price (E) 500 ml water tank Meranti door Diamond mesh 1.8m Total 2 2 6 E3 600.00 E 999.00 E1 252.00 E 7 200.00 E 1 998.00 E 7 515.00 E16 713.00 The supplier, G.C.T.
Investments was paid on voucher No.

030051, cheque no.

5562.

In his initial response, referenced Tinkh 2/3/vol.1/63, dated 4th November, 2010, the Controlling Officer agreed that 3 diamond mesh rolls were stolen and the matter was reported to the Police, but the matter was still pending.

He also undertook to inform my office upon receipt of information on the issues raised.

Page 72 However the response was silent on the assertion that the association deserted the project to further their studies.
Even though the Controlling Officer made an undertaking to keep my office informed about the status of the vegetable production project and the present position regarding the stolen fencing material, I am concerned that the Controlling Officer has not kept his promise.

As a result at the time of reporting I have not been informed of an outcome of the police investigations on this matter.

The terms of the Regional Development Fund Regulation, Legal Notice No.
83 of 2008 Section 12 (1) (a) (b) state that “in considering an application, a project committee shall satisfy itself in addition to the criteria set out in Regulation 10 (2) and 11 (1) that the project has been professionally screened, appraised and certified as viable and that the Association is ready to proceed with the project”.

It is disheartening to note that the provisions of the above act were ignored when considering financial assistance to the above Association.
I therefore consider the above payment charged against Public Funds a waste of State resources because the project was a non starter.

The response, to my reference sheet, referenced Tinkh 2/3 dated 7th October 2011 indicated that the association was met and it transpired that fencing was in progress.

Also, the association cited that the reason why its members were discouraged to be active, was the delay in getting that functional mill.
The Controlling Officer informed me that the association was given one month (October) to complete the works, supposedly to allow the project to commence.

The issue of the stolen fence is still pending and is to be followed up by the Gogo Centre Manager.

The response is not convincing to make me believe this matter has been resolved and the project will take off, given the lapse of time from the date the materials were purchased (3 years ago).

There is no evidence to confirm this assertion.


It is noteworthy that the reasons given in the response does not correspond to the one obtained during the inspection, that the members left, to further their studies or rather information whether a new association has been established.
20.1 Audit Inspection: Maseyisini Inkhundla An Audit inspection was carried out at Maseyisini Inkhundla Centre on the 26th August 2009 and a report referenced N15/ Vol.VIII/85 dated 5th January 2010 was issued to the Controlling Officer, Ministry of Tinkhundla Administration and Development.
Page 73 (a) Purchase of 200 Bags of Cement– Ka Dlovunga Community In my report referenced above, I drew the attention of Controlling Officer in the Ministry of Tinkhundla Administration and Development, that 200 bags of cement amounting to E13 900.00 were purchased and charged to the Regional Development Fund in 2008/09 financial year.

The goods were purchased from CRB Trading and paid through voucher number 026010 dated 5th May 2008 by cheque number 5462.
The 200 bags of cement were purchased for the construction of a Poultry Shed for Ka-Dlovunga Community.

However, the project was a non-starter and as a result the cement bags were distributed amongst the members of the Association(project) for personal use.

During the physical verification of the project, evidence collected was that, one member of the Association/project was interviewed and she admitted that after receiving her fair share of the cement she constructed a rondavel for personal use.
The other members of the Association made cement blocks with a view of extending their houses.

In his initial response referenced TINK.2/2vol.II 119, dated 28 February 2010, the Principal Secretary agreed with my observations stating that a decision to share the bags of cement amongst members of the community project came after efforts to secure a site to operate the project failed, and the matter is with the inner Council of the area.
The Regional Development Fund Regulations notice of 2008 stipulates that the availability of land where the proposed business or scheme will operate must be ascertained and confirmed prior to Funding.
I therefore consider that due care was not exercised when scrutinising the associations request for funding and I find the expenditure unjustified, irregular and the act was tantamount to fraud, because unused material should have been returned to government for reallocation to other deserving associations/projects.
In his reply, referenced Tinkh 2/3 Vol II, dated 7th October 2011, the Controlling Officer stated that the Regional Office met the association and the members stated that they initially asked for chicks and not the cement and they were forced to accept the cement.

The Controlling Officer resolved that the cement should be returned and the Regional Office should investigate the issue of the 50 bags.
In view of the above information the issue has not been corrected and he did not state how he intends to recover the cement that was purchased through public funds which benefited individuals for personal gain.

Page 74 20.2 Under Expenditure on Project X46599 – Construction of Tinkhundla Under expenditure are as serious as over expenditures in that if approved funds are locked up and not utilized, retards the capital development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital project in a year as not conducive to the development of a country.

An amount of E3 000 000.00 was approved and released for minor repairs of existing Tinkhundla Centres.

The whole released amount was not utilized thus resulting in the savings of 100%.

The Ministry is expected to explain and give the reasons for the non- implementation of this project as well as the savings.

The Controlling Officer denied the over expenditures.
He stated that the E3 000 000.00 was allocated for minor repairs on Tinkhundla Centres and part of it was utilized to reconstruct the Mayiwane Inkhundla, which was also completed.

20.3 Under Expenditure on Project X46699 – Construction of Kitchens and Hostels II Under expenditure are as serious as over expenditures in that if approved funds are locked up and not utilized, retards the capital development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital project in a year as not conducive to the development of a country.

An amount of E3 000 000.00 was approved and released for the completion of kitchens and hostels and Woman in Development (WID) Centres.

The Ministry is expected to explain and give the reasons for the savings and justify whether the project was completed.

The Controlling Officer reported that there was no under expenditure under this project.
The total sum of E3 000 000.00 was released for the completion of the project.

However since the project was a non starter the money was, with authority, reallocated for the construction of the Mhlambanyatsi Inkhundla which is in progress.

Page 75 20.4 Under Expenditure on Project X46799 – Security at Tinkhundla Centres Under expenditure are as serious as over expenditures in that if approved funds are locked up and unutilized, retards the development and economic growth..
I therefore consider under expenditures of 10% and above on capital project in a year as not conducive to the development of a country.

An amount of E2 000 000.00 was approved and released for fencing, security lights and construction of guard houses at Tinkhundla Centres.

The whole released amount was not utilized resulting in the savings of 100%.

The Ministry is expected to explain failure to implement the project.
The Controlling Officer in his reply assured me that there was no under expenditure on this project.

The focus of this project was in the installation of flood lights in all Tinkhundla and the whole sum of E2 000 000.00 that was released was utilized for the project and it was accomplished.
20.5 Under Expenditure on Project X49699 – Phocweni Resettlement Under expenditure are as serious as over expenditures in that if approved funds are locked up and unutilized, retards the development and economic growth..

I therefore consider under expenditures of 10% and above on capital project in a year as not conducive to the development of a country.
An amount of E20 000 000.00 was approved and released for the settlement of Pocweni residents to make available for the expansion of Matsapha Industrial Area.

Actual expenditure amounted to E258 492.00 resulting in an under expenditure of (E5 000 000.00 – E258 492.00) E4 741 508.00 (94.8%).

The Ministry is expected to explain the status of the project and give reasons for the slow implementation and further justify the high savings.
In his reply the Controlling Officer stated the reason for the under expenditure to have been that the Ministry of Finance did not release the funds and thereafter projects implementation was suspended due to the Economic crisis.

20.6 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).
However, the Ministry violated Page 76 the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) 09 09 CTA Vehicle Charges (12) Personal Costs (12) 4,137,396.00 7,103,222.82 2,965,826.82 44,352,131.00 49,807,251.35 5,455,120.35 12 Over Expenditure (%) 72 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his reply the Controlling Officer stated the following causes of over expenditure:- (i) (ii) CTA Vehicle Charges The over expenditure was a result of various assignments at Chiefdom levels which Tinkhundla is involved in.

Personnel Cost The over expenditure was a result of the escalation of personnel cost due to introduction of Circular no.

1 which was back dated to April 2011 creating arrears resulting in the over expenditure.
No comment was made about the authority allowing the Ministry to over spend.

20.7 Audit Inspection: Motshane Inkhundla Empowerment Fund For The Year 2008/2009 In July 2009, I conducted an audit inspection at Motshane Inkhundla and a report referenced P10/ V111/93 dated 3rd August 2009 was issued to the Principal Secretary.

The Principal Secretary did not respond to the concerns raised which are stated below.
(a) Purchase of Materials: Ntambande Youth Association In my report, referenced above, I brought to the attention of the controlling officer that one hundred and sixteen (116) bags of cement and various tools amounting to thirteen thousand one hundred and thirty two Emalangeni (E13 132.00) purchased for the above association, were not used for the benefit of the association, which intended to make cement blocks, for sale.
Page 77 The materials which were purchased from the Empowerment Fund, during 2008/2009 Financial Year, were alleged to be in the custody of a certain community member, under Motshane Inkhundla, who is also a Civil Servant, employee number 4222910.
The items purchased were Item Quantity 50kg bags cement Concrete wheel barrow Garden Spades Shovels Total 116 3 6 3 Unit Price (E) 87.00 600.00 127.00 140.00 Amount (E) 10 150.00 1 800.00 762.00 420.00 E13 132.00 In the same memorandum, I pointed out that during an interview with the inner council members of the above Inkhundla (Bucopho, Indvuna) it transpired that the member of the community, who is a Civil Servant, claimed ownership of the above Items, citing that the approval of the project was a result of his idea and therefore he should benefit from it.
Further, during a follow–up inspection, conducted on 1st September 2011, it was discovered that the project was no longer operating because the member decided to abandon the project and kept the durable items in his possession.

It is my major concern and worry that the controlling officer ignored the above serious matter of depriving the youth association a good course, that of generating income and allowed an individual to unjustly enrich himself using the tax payer’s money.
In view of the above scenario, government’s aim to alleviate poverty at grassroots level is being jeopardized, at the expense of the taxpayers.

Also, it should be noted that if poverty alleviation is not achieved the crime rate will increase and become uncontrollable.

In his reply, referenced Tinkh 2/3 Vol.


I/68, dated 20th December 2011, the Controlling Officer informed me that the member of the association who claimed the material has been instructed to pay a fine and give the material back to the youth.

Further, he promised to update me when the instruction has been duly executed.

At the time of writing the report I have not been updated on the matter.
Page 78 20.8 Audit Inspection: Mahlangatsha Inkhundla, Regional Development Fund For The Year 2008/2009 An audit inspection was carried out at the above Inkhundla Centre on the 20th April 2010, and a report referenced m4.Vol.IX.16,dated 18th May 2010 was issued to the Principal Secretary in the Ministry Tinkhundla Administration and Development.

The Controlling Officer’s response was not satisfactory because the matter was not addressed.
(a) Purchase of Welded Wire Mesh In my memorandum quoted above, I reported that welded wire mesh valued at E33 000.00 were unused at the Mahlangatsha Gogo Centre.

These items were purchased by order number 509003 dated 25th November 2008 from L.S.M Distributors (Pty) Ltd and delivered on 8th December 2008.

The payment was made on the 9th December 2008 on payment voucher, 090011 by cheque number 482.
The details were:- Description of goods Quantity Unit Price (E) Welded wire mesh 10 3 300.00 Total Price (E) E33 000.00 However, a further enquiry revealed that the materials were rejected by the Kazulu Farmers Association at Mahlangatsha Inkhundla, because they were not the required items.

The Association requisitioned 10 rolls of fencing material, Diamond mesh but 10 welded wire mesh were purchased and delivered, which they could not utilize.
A follow up inspection conducted on the 29th September 2011 revealed that the welded mesh, twenty nine months after delivery, was still lying idle at the Gogo Centre exposed to all kinds of weather conditions.
I find it hard to come into terms with the controlling officer’s response referenced Tinkh 2/3 Vol 1/122 dated 9th September 2010 informing my office that matters surrounding the above expenditure are being under consideration, looking at the length of time it has taken the association to make use of the expensive building material.
Page 79 I see no good reason for failure, by the ministry, to reallocate the above material which has cost government so dearly to another deserving association, as required by the Regional Development Fund Regulations, no 83 of 2008.

In view of the above scenario, government’s intention to alleviate poverty from grassroots level is being jeopardized and the objective of the fund, will not be realized.
20.9 Audit Inspection – Shiselweni Region An Audit inspection was carried out at 14 Tinkhundla centers in the Shiselweni region and a report referenced N15VOLIII dated 24 November 2010 was issued to the Principal Secretary in the Ministry of Tinkhundla Administration and Development.

The Principal Secretary’s response did not satisfactorily address the following Audit concerns raised on the following purchases.
(a) Cleaning Material In my report, referenced above, I expressed concern about cleaning material, valued at E169 280.00 which were purchased from Hidings Investments (PTY) LTD, using the Empowerment Fund, for 2010 financial year, in respect of the following 14 Tinkhundla centres: 1.

Nkwene 2.

Mtsambama 3.

Shiselweni II 4.

Shiselweni I 5.

Khubutha 6.

Maseyisini 7.

Gege 8.

Ngudzeni 9.

Sigwe 10.

Zombodze 11.

Hosea 12.

Matsanjeni 13.

Sandleni 14.
Somntongo The cleaning material purchased was as follows: QTY 480 42 ITEM DESCRIPTION Bales industrial toilet paper Cases sunlight soap UNIT PRICE (E) 120.00 455.00 TOTAL PRICE (E) 57 600.00 19 110.00 Page 80 14 28 30 28 28 28 28 40 30 240 28 TOTAL Long handle feather duster Toilet brushes 25L liquid soap Deoblock (blue or pink) 20L wax floor polish 25L general purpose cleaner 25L heavy duty cleaner Mops Carpet shampoo Dyroach Toilet bowl cleaner E169 280.00 The cleaning material which was to be shared amongst the 14 Tinkhundla centres in the Shiselweni region was received by the Assistant Accountant, Shiselweni Regional Administration office and were delivered on the 24th February 2010, by delivery note number 19 and paid on 26th February 2010, voucher number 120022 by cheque number 000928.
However, a physical verification, which was conducted at the Tinkhundla centres from 26th July 2010 to 13th August 2010 revealed that the material amounting to E76 090.00 were distributed to the Tinkhundla centres, and materials amounting to E98 320.00 were missing and untraceable In summary the cleaning materials distributed were:- QTY DESCRIPTION UNIT PRICE (E) AMOUNT (E) 21X14 1X14 2X14 1X14 1X14 1X14 1X14 2X14 1X14 1X14 1X14 TOTAL Bales industrial toilet paper Cases sunlight soap Toilet brushes 25L liquid soap 20L wax floor polish 25L general purpose cleaner Toilet bowl cleaner 25L heavy duty cleaner Long Mops Dyroach Carpet shampoo E76 090.00 (b) Missing Cleaning Material – E 98 320.00 The missing cleaning material valued at E98 320.00 were: QTY ITEM DESCRIPTION UNIT PRICE 186 28 16 14 Bales industrial toilet paper Case sunlight soap 25L liquid soap 25L general purpose cleaner TOTAL PRICE (E) 120.00 455.65 350.00 375.00 22 320.00 12 740.00 5 600.00 5 250.00 Page 81 14 14 18 30 14 TOTAL 25L toilet bowl cleaner 25L heavy duty cleaner Long mops Carpet shampoo Wax floor polish (c) Irrelevant Purchase 345.00 345.00 95.00 350.00 375.00 4 830.00 4 830.00 1 710.00 10 500.00 5 250.00 E98 320.00 I noted with concern that 30X25 litres of carpet shampoos, valued at E10 500.00 were purchased but there were no carpets at the Tinkhundla centres.
Further, there were no carpet shampoos delivered or distributed to the Tinkhundla centres.

This indicates that the purchase of this product was not genuine but a strategy to steal the money from the fund.
In response to the above serious anomaly, the Controlling Officer forwarded two responses, one referenced TINKH 2/3 Vol II, dated 22 February 2011, stating that the cleaning items were delivered to various fourteen Tinkhundla centres and some other items were left at Regional Offices in Nhlangano to be delivered on request.

He further pointed out that another visit, by my Office, could assist on updating the records.
The other response referenced TNKH 2/3 VOL II, dated 11th August 2011, denied that there were missing material and attached 15 dubious delivery notes asserting that the whole consignment was shared and delivered at once, to the 14 Tinkhundla centres, including the Tinkhundla Regional Office, at Nhlangano.

The delivery notes were not authentic because they were not signed by the alleged recipients to acknowledge receipt of the items.
Further, the materials were purchased for the 14 Tinkhundla centres but the delivery notes include one consignment in respect of the Regional Administration office which has its own budget for recurrent expenditure.

These conflicting statements confirm that indeed the whereabouts of the other items are unknown and the expenditure did not benefit the Tinkhundla Centres.
Further, as if it was not enough my office made another visit, by appointment, to inspect the material kept at the Regional office, but could not gain entry into the storeroom.

The reason given was that the keys were not available because the cleaner had gone to Mbabane, thereafter, there was no update about this matter.

Page 82 In view of the above, the amount of E98 320.00, in respect of the missing material which were not accounted for, is a loss to government and tantamount fraud.
(d) Purchase of Office Stationery I also stated that office stationery for all the Tinkhundla centres under the Shiselweni Regional Administration office amounting to E212 984.00, was purchased using the Empowerment fund.
The items were as follows: QTY 28 28 28 100 300 1500 140 300 28 100 100 50 250 350 50 TOTAL ITEM DESCRIPTION 50 bic click pens blue 50 bic click pens black Staplers 993430 Staples Typing carbon paper Reams A4 photocopying paper 2 quire hard cover notebook Treasury tags - Indian Stamp pad large Adding machine rolls Endorsing ink violet and black Boxes rubber bands Eraser pencil Marking pens Tippex fluid set UNIT PRICE (E) 6.90 6.90 15.30 14.95 159.00 79.00 14.50 24.50 39.50 7.50 7.50 9.50 13.50 19.50 18.90 TOTAL PRICE (E) 9 660.00 9 660.00 428.40 1 495.00 47 700.00 119 850.00 2 030.00 7 350.00 1 106.00 750.00 750.00 475.00 3 375.00 7 410.00 945.00 E212 984.00 The above stationery was received by the Assistant Accountant, Shiselweni region and was paid on voucher number 120050, cheque number 482.
In my memorandum referenced above, I stated that during the physical verification conducted at the Tinkhundla centres I noted that the underlisted stationery items, amounting to E39 647.60, was not received by the Tinkhundla centres.
The missing stationery was as follows: QTY ITEM DESCRIPTION UNIT PRICE (E) TOTAL (E) 14 14 90 72 100 90 100 16 50 bic click pens (blue) 50 bic click pens (black) Typing carbon papers staples Staples Reams Treasury tags Adding machine rolls Endorsing ink violet 6.90 6.90 159.00 14.95 79.90 24.50 7.50 7.50 PRICE 4 830.00 4 830.00 14 310.00 1 076.40 7 990.00 2 205.00 750.00 120.00 Page 83 8 40 142 8 TOTAL Boxes rubber bands Erasers, pencil Marking pens Tippex fluid 9.50 13.50 19.50 18.90 76.00 540.00 2 769.00 151.20 E39 647.60 In his response, referenced TINKH2/3 VOL III, dated 14 July 2011, the Controlling Officer concurred with my observation and stated that not all the stationery purchased for the Tinkhundla centres, was issued because some of it was kept at the Shiselweni Regional offices.
It was however disturbing to note that, during the physical inspection, there were no records confirming the Controlling Officer’s assertion, that stationery was transferred to Tinkhundla centres.

The above action is also a clear indication that the Empowerment Fund was diverted from its primary purpose, that is, poverty alleviation, to purchase stationery which is budgeted for in the recurrent budget.
Further to the above, the procedure set out in regulation 0505 of the stores regulation of 1975, which enforces Accounting Officers to maintain accounting records in case of transfer of stores between departments, was not observed.

It is worth mentioning that the assistant accountant during the interview agreed that there were problems with both orders and promised to talk to the suppliers, Hidings Investments (Pty) Ltd, suppliers of cleaning material and Two Sisters, stationery suppliers.
In view of the findings, the whole expenditure was not genuine since the purpose and need of the goods is not clear.

20.10 Audit Inspection : Lomahasha Inkhundla , Regional Development Fund for the Financial Year 2008/ 2009 An audit inspection was conducted at the above Inkhundla Centre on the 7th October 2009 and a report referenced S17 Vol .

IX.

III dated 30th December 2009, was issued to the Controlling Officer, Ministry of Tinkhundla Administration and Development.
However, the Controlling Officer in his response, ref Tinkh 2/3 Vol 1/115, dated 10th March 2010, did not take corrective action on the issues raised.

(a) Purchase of building material for Bhubezi Dip-Tank : Shewula Area Building material worth E121 037.30 was purchased on the 27th May 2008 from Lapet Investment for the construction of Bhubezi Dip Tank.

The supplier was paid on the 5th June 2008 on voucher number 030074 by cheque number 5486.
Page 84 The goods purchased consisted of the following items: Description Cement Re-inforcement rods 6m 100mm wire Cresonated poles 6m Cresonated poles 2.5m Plain wire 8 gauge Plain wire 14 gauge Corrugated iron sheets IBR Ridge IBR Sheets 1.5m Roofing screws Roofing washers Door frame 813 *2032 Window frame C 4 H Brickforce Total payment Quantity Ordered Unit Price Total Amount Paid (E) 316 120 7 150 153 5 1 216 4 40 5 5 1 1 123 75.60 17.90 31.70 121.70 121.70 720.00 930.00 190.00 582.40 83.85/m 54.60 51.00 1 350.00 671.00 19.70 23,889.60 2,148.00 221.90 18,255.00 18,620.00 3,600.00 930.00 41,040.00 2,329.60 5,031.00 273.00 255.00 1,350.00 671.00 2,423.10 E121,037.30 (b) Part Delivery In the report referenced S17 Vol IX III, dated 30th December 2009, I stated that the roofing material which was part delivered consisting of corrugated iron sheets and IBR sheets amounting to E42 605.50 was missing.
The missing items were: Description Quantity Unit Price Corrugated Iron Sheets IBR Sheets Total 211 30 190.00 83.85/m Total Price (E) 40,090.00 2,515.50 E42,605.50 The Principal Secretary in his response referenced Tinkh 2/3 Vol.

1 /115 dated 10th March 2010 concurred with my observation and stated that the roofing material was kept at one of the Homesteads and had since been returned by the chairperson of the organization.
During a follow up inspection conducted on the 28th September 2011, it was discovered that only 31 corrugated iron sheets were later delivered by the supplier to make good the undelivered iron sheets.

Therefore the shortfall of 180 corrugated iron sheets, valued at E34 200.00 and 30 IBR sheets, worth E2 515.50, remained missing.

Thus a total of E36 715.50 were paid for undelivered items.
Page 85 The table below depicts the missing roofing material: Description Corrugated iron sheets IBR Sheets 1.5 m Grand Total Quantity available 31 10 Quantity not available 180 30 Unit Price 190.00 83.85 /m Total Amount (E) 34,200.00 2,515.50 E36,715.50 The above state of affairs was communicated to the Principal Secretary of the Ministry, whose response Tinkh 2/3 Vol 1/115 dated 2nd November 2011 attached a letter from the supplier in an effort to clarify the shortage.
However the information furnished by the supplier was disputed because it did not match the information contained in the purchase order form.

(c) Duplication of funding Notably whilst the building material was purchased and charged to the Regional Development Fund for the construction of the Dip Tank, the construction of the project was in progress and was financed by the Community Development Fund, Micro Projects Programme, at a cost of E20,000.00, under the Ministry of Economic Planning Development.
The total cost of the project was E85,000.00 broken down as follows: Micro Project / Community Development Fund E20,000.00 Shewula Community Contributions E65,000.00 E85,000.00 During a follow up audit inspection which was conducted on the 28th September 2011, I was not surprised to find the building material, that was purchased through the Regional Development Fund amounting to E121,037.30, still lying idle at the Inkhundla Centre, exposed to all kinds of weather conditions.
It should be noted that the material has been lying idle since it was purchased in 2008, that is over two (2) years.

In view of the above scenario , there is no seriousness demonstrated by this Community to put into good use the Regional Development Fund, which is intended to alleviate poverty at grassroots level.
It is patently clear, therefore, that during the application for funding the screening process by the Development Committee for the Inkhundla Centre, did not consider the approved projects under the Micro Project Programme, before approving funding from the Regional Development Fund.
The Controlling Officer did not respond to my observation and thus violated Financial and Accounting Instruction 0315 (ii) which states that “it is the duty of all Accounting Officers to reply promptly to any queries addressed to them by the Auditor General, giving fully the particulars or information desired”.

Page 86 HEAD: 10 MINISTRY OF NATURAL RESOURCES AND ENERGY Objectives: Power and Water - To provide and maintain facilities for ensuring availability of adequate power and water.
Lands - To implement policy to ensure optimal land use.

Survey and Mapping - To provide survey and mapping services for government.

21.0 Irregular Salary Payment- Employment No.


39886743 In my memorandum referenced N18 VOL.IV, dated 5th October 2010, I drew the attention of the Principal Secretary, Ministry of Natural Resources and Energy about an officer, employment number 39886743 who went on study leave without proper authorization and received full salary for thirty six months (3years) while away, on training.
Records revealed that, in August 2007, the Officer was awarded a pre-service scholarship, which is meant for school leavers who are not employed, whilst in the service of the Government of Swaziland, under the Ministry of Tinkhundla and Regional Administration.
The Officer pursued her studies at the university of Swaziland, on a full time basis, since August 2007, without obtaining proper authority for study leave and received full salaries totaling E230,000.00, for three (3) academic years starting from August 2007 to August 2010.
In mitigation, the Officer in her unreferenced letter, dated 17 November 2010, alleged to have obtained a verbal approval to proceed on study leave, from her previous Supervisor at the Ministry of Tinkhundla and Regional Administration.

Since this officer was already employed by government she was entitled to the in- service training scholarship and not the pre-service scholarship.
Therefore, the Officer in order to qualify for salary payment whilst on study leave, should have complied with General Order A370, which states that officers have to be nominated by government so that the whole period of absence including vacations shall count as duty.
Instead, the whole process was a conglomeration of issues without reference to the applicable rules and regulations such that; the nomination process was not clear, the scholarship obtained was not suitable for a serving officer and no authority was Page 87 obtained from the relevant authority, Ministry of Public Service, in relation to the study leave.

Furthermore, under no circumstances this officer should have earned full salary for the duration of study, if regulations were followed accordingly.
It is quite evident that this Officer, personally, initiated the training and was not nominated by government and therefore she should have complied with the relevant General Order A371, which regulates training for officers not nominated by government.
Therefore, General Order A371 which stipulates that self nominated officers should utilize their vacational leave for absence while on training and if vacational leave is not adequate they should apply for leave without pay through the Ministry of Public Service or exit from the Service, either through resignation or retirement, provided the age so allows, was not adhered to.
I am concerned that the Principal Secretary in the Ministry of Tinkhundla and Regional administration released the Officer for a course of instruction which is long term without compliance with laid down regulations and allowed the Officer to draw the salaries while not on duty.

This is collusion which resulted in defrauding government a thirty six months’ salary amounting to E230 000.00, which has to be recovered and disciplinary action be taken.
While I am aware that the Controlling Officer in the Ministry of Natural Resources did not authorize the absence from duty, since this officer joined his office, on transfer, in July 2010, his intervention was necessary to facilitate the stoppage of salary and recovery of the unauthorized salaries in liaison with the Controlling Officer, Ministry of Tinkhundla and Regional Administration, from which the anomaly emanated.
However, his efforts are applauded because he managed to stop the salary payments, immediately, after I alerted him about this matter.

Even the Controlling Officer in the Ministry of Natural Resources cannot be absolved in this matter because I drew his attention on the anomaly but he did not take it serious to liaise with his counterpart, Controlling Officer Ministry of Tinkhundla and Regional Administration to arrest this situation.
The Controlling Officer, in his response, referenced PF 25610 dated 29th November 2011, stated that it was him who reported the anomaly to the Executive Secretary, Civil Service Commission and copied the letter to my office, which I used for my investigation.

Page 88 However, the matter is still pending because the Civil Service Commission has not deliberated it as yet.
He further informed me that it was outside his jurisdiction to question the other Ministry why it failed to take appropriate action about the study leave and that recovery of the over payment is now impossible since the officer absconded from duty and is not earning any salary.

He stated that the recommendation he would table before the Commission is that of the termination of employment and thereafter instruct the Attorney General to take legal action to recover the money owed.
Therefore, the matter has not been resolved.

21.1 Over Expenditure on Project F01699 – Wind Measuring Equipment Along the Lubombo Plateau Over expenditure in excess of budget provision and released funds is illegal in that it distorts the fiscal budget of a country.

This is supported by Financial and Accounting Instruction 0202(ii) and 0401 which disallow expenditure in excess of funds released.
Further Controlling Officers are urged to encourage economy in the use of funds failing which officers who spend in excess of authorized amounts may face surcharge in accordance with section 20 of the Finance and Audit Act.

An amount of E500 000 was approved but only E497 710 was released for the implementation of the project, measuring equipment along the Lubombo.

Actual expenditure amounted to E721 499.32 resulting in over expenditure of E223 783.32 (44%) (E497 710 – E721 499.32).
The Controlling Officer is expected to explain the authority that allowed him to spend beyond released funds.

The Controlling Officer stated that there was, actually, no under expenditure under this project.

The apparent over expenditure was a result of a mistake by the Treasury Department to capture a certain payment as two payments when, actually, it was one payment.
This payment was prepared at different intervals and due to the exchange rate fluctuation the amounts to be paid differed and seemed to be two separate payments.

He assured me that only one payment was made and not two payments as reflected in Treasury accounting system.
Page 89 21.2 Under Expenditure on Project M30999 – Review of Mining Legislation Under expenditure are as serious as over expenditures in that if funds are locked up and not utilized, retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E500 000.00 was approved as budget but only E409 506.00 was released for completing the review of the mining legislation.

Actual expenditure amounted to E322 331.00 resulting in an under expenditure of (E409 506.00 – E322 331.00) E87 175.00 (21.2%) savings.

The Ministry is expected to explain the status of the project and the reasons for the savings.
The Controlling Officer did not respond to my observation and thus violated Financial and Accounting Instruction 0315 which states that “It is the duty of all Accounting Officers to reply promptly to any queries addressed to them by the Auditor General, giving fully the particulars or information desired”.
21.3 Under Expenditure on Project M33499 – Mining of Geological Data Management System Under expenditure are as serious as over expenditures in that if funds are locked up and not utilized, retards the development and economic growth.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E2 200 000.00 was approved as budget but only E1 342 473.00 was released to establish a mining and geological data management system.

Actual expenditure amounted to E1 177 607.04 resulting in an under expenditure of (E1 342 473.00 – E1 177 607.04) E164 865.96 (12.2%) savings.

The Ministry is expected to explain the status of the project and the resultant savings of 12.2%.
The Controlling Officer did not respond to my observation and thus violated Financial and Accounting Instruction 0315 which states that “It is the duty of all Accounting Officers to reply promptly to any queries addressed to them by the Auditor General, giving fully the particulars or information desired”.
Page 90 21.4 Under Expenditure on Project F02086 – Ethanol Blending Under expenditure are as serious as over expenditures in that if funds are locked up and not utilized, retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E1 660 000.00 was approved as budget but only E397 799.00 was released for design review and for undertaking preliminary works for the construction of the strategic fuel depot facility.

Actual expenditure amounted to E68 829.00 resulting in an under expenditure of (E397 799.00 – E68 829.00) E328 970.00 (82.6%) savings.

The Ministry is expected to update my office on the status of the project implementation and further justify the high savings.
In his response, referenced Min/NAT/C3F dated 5th December 2011, the Controlling Officer agreed with my findings.

He stated that the under expenditure was a result of the CTA Restructuring Exercise which caused the fuel tendering process to be stalled, to date, thus delaying progress on his project.

Further, the proposed storage for the Ethanol fuel could not be procured because the installation site had not been identified by the Central Transport Administration.
21.5 Under Expenditure on Project F01986 – Fuel Marketing and Quality Assurance Under expenditure are as serious as over expenditures in that if funds are locked up and not utilized, within the set time frame, the development and economic growth of a country is retarded.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E5 784 000.00 was approved as budget but only E4 627 694.00 was released for implementing regulatory measures on the fuel standards, purchase materials for marking all fuels imported into the country and monitor fuel quality.

Actual expenditure amounted to E2 299 369.99 resulting in an under expenditure of (E4 627 694.00 – E2 299 369.99) E2 328 324.01 (50%) savings.
Page 91 The Ministry is expected to update my office on the status of the project implementation and further justify the high savings.

The reply, referenced MIN/NAT/C3F, dated 30th November 2011, indicated that there was no under expenditure in this project.
The amount seemingly, remaining was paid to the Consultant, authentix in the next financial year, from the strategic oil reserve, due to the shortage of funds and as a result it was reflected in the 2010/11 financial year instead of 2009/10 to which it relates.

21.6 Under Expenditure on Project F01799 – Energy Efficiency in Public Buildings Under expenditure are as serious as over expenditures in that if funds are locked up and not utilized retards the development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

An amount of E5 000 000.00 was approved as budget but only E499 187.00 was released for the installation of energy saving solar heaters at Mbabane Correctional Services and education awareness on energy saving technologies.

Actual expenditure amounted to E215 038.19 resulting in an under expenditure of (E499 187.00 – E215 038.19) E284 148.81 (56.9%) savings.
The Ministry is expected to explain the status of the project and the reasons for the savings.

The Controlling Officer, in his response referenced NRF/E/124, dated 1st December 2011, concurred with my findings.

However, he cited the reason for the under expenditure to be that all Ministries were advised to halt all uncommitted expenditure and the Energy Efficiency Awareness was stopped until the financial situation would improve.

But he did not provide any documentary evidence for this assertion.
21.7 Expenditure on Project F01299 – Rural Electrification Phase V Expenditure beyond appropriated funds by Parliament are illegal and distorts the overall capital project fiscal budget of a country.
This is supported by Financial and Accounting Instruction 0202(ii) and 0401 which stipulate that no amount should be spent in excess of the amounts specified in the Treasury Warrant and that, officers who will spend in excess of authorized amount Page 92 has been liable to surcharge in accordance with the Finance and Audit Act.

An amount of E5 840 000 was approved but only E5 539 862 was released for rural electrification.
Actual expenditure amounted to E6 282 623.00 resulting in over expenditure of E742 761.00 (13.4%) (E5 539 862 – E6 282 623.00).

The Controlling Officer is expected to explain the authority that allowed him to spend beyond the released funds.

In his reply, referenced MIN/NAT/C.59 dated 2nd December 2011, the Controlling Officer acknowledged my observation.
However, he stated that the E742 761.00 actually related to the previous financial year 2009/10 but was erroneously reflected in 2010/11 fiscal year because the actual transfer to the payee was made on 8th April 2011.

Documents confirming this assertion were attached.

In view of the above scenario records were indeed distorted, by this amount and thus not giving a true status about this project.
21.8 Over Expenditure on Project P02499 – Feasibility Study For Solar Energy Over expenditure beyond budget provision and released funds is illegal and distorts the fiscal budget of a country.
This is supported by Financial and Accounting Instruction 0202(ii) and 0401 which disallow spending in excess of funds appropriated by Parliament, also, Financial and Accounting Instruction 0401 states that Controlling Officers should encourage economy in the use of public funds and further prescribe that officers who spend in excess of funds may face surcharge in accordance with section 20 of the Finance and Audit Act.
An amount of E1 200 000.00 was approved but only E113 255.00 was released for the feasibility study for solar energy.

Actual expenditure amounted to E2 232 602.20 resulting in over expenditure of E2 119 347.20 (1871.3%) (E113 255 000 – E2 232 602.20).

The Controlling Officer is expected to explain the authority that allowed him to spend beyond the appropriated amount and released funds.
In his reply, referenced MIN/NAT/C3F dated 7th December 2011, the Controlling Officer stated that there was no over expenditure under this project because the Ministry spent E113 255.00 which was released from the Page 93 budgeted amount of E2 119 347.00.

The apparent over expenditure was due to an amount of E2 100 000.00 which was donated by the Embassy of the Republic of China, Taiwan.
However, it is noteworthy that although this amount was a donation, it is still considered an over expenditure because the Ministry over looked the appropriation act and utilized the money without authority.

Procedurally all monies including donations should be routed through the Ministry of Economic Planning and Development.

No monies should be spent without being properly authorized.
21.9 Under Expenditure on project W31199-Water Resources Management Institutional Reforms Under expenditure are as serious as over expenditures in that if funds are locked up and not utilized, within the set time frame the development and economic growth of a country is retarded.

I therefore consider under expenditures of 10 % and above on capital projects, in a year as not conducive to the development of a country.
An amount of E3 750 000.00 was approved as budget but only an amount of E1 015 208.00 was released for the operationalisation of the newly formed river basin authorities and to finalise the development of the water Act and Regulations and Awareness creation.
Actual expenditure amounted to E523 345.92 resulting in an under expenditure (E1 015 208.00 – E523 345.92) E491 862.02, 48.4% In his response, referenced DWA 42, dated 12th December 2011, the Controlling Officer stated that the under expenditure was a result of the freezing of issuing of government purchase orders and financing of other activities by government in October 2010, due to the cash flow crisis.
21.10 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Page 94 Head Item 15 15 15 15 Vehicle Vehicle Vehicle CTA Charges (10) CTA Charges (11) CTA Charges (12) Consumable Materials Supplies (13) Released Budget (E) Actual/Committe d Expenditure (E) Over Expenditure (E) Over Expenditur e (%) - 7,386.95 7,386.95 100 1,132,042.00 1,275,748.14 143,706.14 1,217,344.00 1,755,060.60 537,716.60 48,496.00 57,735.00 9,239.00 and 13 44 19 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
The Controlling Officer did not respond and thus violated Financial and Accounting Instruction 0315 which states that “It is the duty of all accounting officers to reply promptly to any audit queries addressed to them by the Auditor General giving fully the particulars or information desired”.

21.11 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item 10 10 10 10 10 10 Personal Costs (26) CTA Vehicle Charges (34) CTA Vehicle Charges (36) Consumable Materials and Supplies (36) CTA Vehicle Charges (45) Grants and subsidies – External (46) Released Budget (E) 4,244,782.0 0 2,517,239.0 0 5,549,303.0 0 831,925.00 Actual/Committe d Expenditure (E) Over Expenditure (E) Over Expenditure (%) 5,700,223.19 1,455,441.19 3,081,714.66 564,475.66 13,833,693.26 8,284,390.26 985,109.00 153,184.00 34 22 149 18 140 2010 411,986.00 90,207.00 988,265.76 1,903,551.30 576,279.76 1,813,344.30 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his reply, the Controlling Officer concurred with my findings and in his responses submitted the following explanations:- Page 95 Item 01 Personnel Costs – response referenced NRF/29 dated 14th December 2011:- The Controlling Officer stated that there was no supplementary budget to cater for living cost adjustment and re-instatement of transport re- imbursement allowance for the entitled grades (E5,F2,F4) which had been suspended.
In addition the personnel costs for the conveyancing section that was moved to this Ministry without its allocation and the establishment of the Land Board which was supposed to be remunerated under Judiciary were catered for from the Ministry’s budget.

No adjustments were made.
Item 00 CTA Charges and 06 Consumables – response referenced GE 06/000 dated 14th December 2011:- The Controlling Officer stated that the over expenditure amounting to E8 284 390.26 was due to CTA charges for the Department of Water Affairs (DWA) together with Rural Water Supply functions, for carrying out their activities, such as drilling and conducting pumping tests, including repairs and maintenance costs for the old drilling rigs and Rural Water Supply Designs and Construction, respectively.
The CTA charges included vehicle hire charges, due to serious shortage of vehicles and CTA presented the costs, which were very high, at the end of the hire period.

The over expenditure under Consumables, item 06, was caused by the purchase of protective clothing for the drilling crew.

He pointed out that it was impossible to suspend operations because the clients had paid deposits for drilling services.
Grants and Subsidies (External) The response referenced 28th December 2011 state that, the over expenditure of E1 813 344.30 under Grants and Subsidies (External) was a result of two payments made to World Energy Council (WEC) for 2011 subscriptions, the payment of E1 711 228.28 to MEFMI Foreign account which the Ministry did not authorize and the payment to London Tankers for 2010 fuel information subscription that was supposed to have been paid in 2009/10 but was not paid due to delays by the Treasury Department.
I am not convinced by this explanation because there was no authorization for the over expenditure, as per appropriation act.

Further, I am not aware of the Page 96 business relationship between MEFMI and the Ministry of National Resources and Energy.
Page 97 HEAD: 20 MINISTRY OF AGRICULTURE Objectives: To formulate policy and administer all legislation related to agriculture and the organisation and management of co-operative societies; to develop and implement plans in pursuit of the agricultural development policy especially in the area of rural development and subsistence farming.
22.0 AUDIT INSPECTION – MALKERNS RESEARCH STATION an audit inspection was carried out at Malkerns Research Station and a report referenced M4/VolVIII/108 dated 24th June 2009 was issued to Principal Secretary, Ministry of Agriculture but there was no corrective action taken.

(a) Misappropriation of Funds In my memorandum referenced above, I reported that in 2008/09 fiscal year, revenue collected on general receipt numbers 3651201-3651251 amounting to E11 958.00 was missing and never brought to account.
On receipt of my findings, the Principal Secretary, Ministry of Agriculture set up an internal investigation to confirm my findings.

Resultant from the internal inquiry, the Controlling Officer in his response ref.AGF95, dated 19th August 2009, acknowledged the shortage of E11 958.00 and furnished my office with documentary proof, to confirm that the shortage was made good.
Following the confirmation of my findings, the Controlling Officer further conducted another internal audit inspection on revenue collected at Malkerns Research Station for the 2009/10 fiscal year and issued a report dated 27th May 2010.

During this audit it was discovered that an amount of E91 220.00 was missing again and two Account Officers, whose employment numbers are 39804378 and 4822448, accepted full responsibility of the loss of funds, through a memorandum dated 1st June 2010.
In their acknowledgement letters, the Officers further requested an arrangement to be made with the Accountant General to facilitate deduction of the monies from their monthly salaries.
Page 98 I am concerned that even though the Controlling Officer had evidence that the two Accounts Officers misappropriated government funds, over 12 months ago, no action has been taken with regard to: • Discipline the Officers to deter such future occurrences • Recover the loss from the implicated Officers • Report the matter to Police since theft was suspected, in order to bring to books the culprits.
It is disturbing to note that the Officers are still at work even to date yet they are implicated in a fraudulent act.

The responses by the Controlling Officer AG 95 dated 21st September 2011 and referenced AG 95 dated 23rd September 2011 indicated that the action which has been taken in relation to my concerns was:- • The Ministry has given verbal warnings to the officers to indicate the seriousness of the offence and have terminated them from collecting revenue.
• The officers sought salary advances to make good the shortage but the Accountant General turned down their request.

Consequently they have arranged to repay the money through deduction from their salaries commencing in October 2011.

Records have revealed that, as per the Controlling Officers response, recovery of the money has indeed commenced from October 2011 at monthly instalments of E1 266.94 per officer, over a period of 36 months.
• That the Ministry did report the matter to the police in May 2011 and investigations are in progress.

Also, an internal investigation team has been set up to look into the irregular practices and fraudulent action.

However there has not been any outcome from the police investigation and thus no legal action has been taken.
The efforts being made by the Controlling Officer are commended subject to my reservations such as:- That the officers have no sign of remorse and were bold to sought salary advances from the very government they defrauded in order to double the burden on government.

I am even more concerned that the Controlling Officer supported such a move.
It should be noted that advances from government are only a kind gesture to help its employees in dire need and should not be taken for granted to cover deliberate irregular acts.

Page 99 The fact that fraud is a criminal offence cannot be over looked and therefore repayment of the money is not adequate to address this matter.
More so, because even though the money owed resulted from intentional illegal practices, it is still repaid with out interest, a matter to be looked into, and thus not deterrent to future occurrences.

I have also noted that the theft and kindred act, which clearly deals with (amongst others) issues of suspension, has not been considered in this matter.

In view of the above state of affairs this matter has not been addressed exhaustively.

(b) Salary Overpayment My memorandum, referenced A15 Vol.
IX/37, dated 30th May 2011, was issued to the Principal Secretary, Ministry Of Agriculture.

But the Controlling Officer did not address the following matter satisfactorily.

In my memorandum, quoted above, I reported that an officer whose employment number was 8337793 retired on the 31st of July 2008, but his salary payment was not ceased immediately, resulting in a salary overpayment amounting to E15 900.00.
The overpayment occurred over a period of 8 months, with effect from 1st August 2008 to 31st March 2009.

In his initial response ref AGF 95, dated 16th June 2011, the Controlling Officer, in mitigation, stated that the pensioner had relocated to Canada and that his office did not have the officer’s contact details.

He further promised to update my office as soon as the officer had responded.

However, the reply by the Controlling Officer did not rectify the anomaly of overpayment.
Further, I am still not aware of any progress made towards the recovery of the loss.
Details of the overpayment of salary are depicted below: Period August 2008 to December 2008 January 2009 to March 2009 Total Basic salary (E) 5 months x 1987.54 3 months x 1987.54 Overpayment (E) 9 937.70 5 962.62 15 900.32 It is disturbing to note that the Ministry ignored Government standing regulations and continued to pay salaries to a pensioner, for a long time, despite that he served notice prior to exit and during this period the stoppage of salary should have been effected.
Page 100 This scenario demonstrates laxity, by the Controlling Officer yet he is entrusted with the overall responsibility of safeguarding state resources.

After I had communicated my intention to refer the matter to Parliament, in his reply, referenced AGF 95, dated 12th October 2011, the Controlling Officer informed me that he has written to the Attorney General and Accountant General requesting their assistance.
He requested that inclusion of the matter be delayed since he believes the overpayment will be recovered.

Although the action taken is commended, it does not guarantee recovery and at the time of reporting the money had not been recovered.
22.2 Under Expenditure on Project A37299 – Water and Irrigation Development at Sigangeni, Mpuluzi, Gege, Ngcoseni and Nyamane Under expenditure are as serious as over expenditures in that if funds are locked up and not utilized, retards development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E18 500 000.00 was approved as budget but only E9 399 630.00 was released for the implementation of harnessing water for irrigation development and other farming activities at Sigangeni, Mpuluzi, Gege, Ngcoseni and Nyamane.

Actual expenditure amounted to E6 384 721.60 resulting in an under expenditure of (E9 399 630.00 – E6 384 721.60) E3 014 908.40 (32%) savings.

The Ministry is expected to explain the status of the project and the reasons for the savings.
In his reply, referenced ACC 30/1 dated 2nd December 2011, the Controlling Officer concurred with my findings, he explained that the project was highly affected by the current financial or cash flow problem, and that actually the 32% was not a saving as far as the project is concerned, it reflects the level of how it was affected.

The Ministry of Finance stopped project managers from committing government by ordering the required materials and equipment.
He was informed that it was now the Minister for Finance who was to authorize the expenditure of government funds.

Several orders were forwarded to the Ministry of Finance for authorization but were not granted owing to the non- availability of cash thus the project could not continue being executed.
22.3 Under Expenditure on Project A34499 – National Livestock Identification II Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized, retards development and economic growth of a country.

Page 101 I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E2 955 000.00 was approved as budget but only E201 500.00 was released for a computerized registration database for livestock identification and traceability system.

The released amount of E201 500.00 was not utilized thus resulting in a one hundred percent (100%) savings.

The Ministry is expected to clarify, update and give reasons for not implementing the project.
In his reply, referenced ACC 30/1 dated 2nd December 2011, the Controlling Officer stated that “The Ministry of Agriculture prepared and submitted requisitions accordingly.

However the office of the Accountant General failed to issue orders due to lack of funds.

As such, the procurement is still outstanding and has negatively affected project implementation.

This is worsened by the Ministry of Finance’s refusal to carry the budget forward to future years”.
22.4 Under Expenditure on Project A36499 – Revatilising Beef Cattle Breeding Centres Under expenditures are as serious as over expenditures in that if approved funds are not utilized within the set time frame, implementation of the project becomes expensive to complete the project.

Thus retarding the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E3 000 000.00 was approved and released for purchasing fencing material for the completion of internal fencing at all five cattle breeding centres.

Actual expenditure amounted to E2 699 975.00 resulting in an under expenditure of E300 025.00 (10%).

savings.

The Ministry is expected to explain the status of the project and the reasons for the savings.
In his reply, referenced ACC 30/1 dated 2nd December 2011, the Controlling Officer stated that “The Ministry of Agriculture prepared and submitted requests accordingly for the procurement of brush cutters, chain saws and the revitalization of cattle breeding stations”.

However, due to the current Page 102 government cash flow challenges the whole process was stalled.
22.5 Under Expenditure on Project A36699 – Buseleni Irrigation Scheme Under expenditures are as serious as over expenditures in that if approved funds are locked up and not utilized ,retards the capital development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E1 200 000.00 was approved and released for installing an irrigation system at Buseleni government farm to produce irrigated organic cotton.

Actual expenditure amounted to E123 709.10 resulting in an under expenditure of E1 076 290.90 (89%).

savings.

The Ministry is expected to explain the status of the project and the reasons for the high savings.
In his reply, referenced ACC 30/1 dated 2nd December 2011, the Controlling Officer stated that “The project has been highly affected by the current financial or cash flow problem.

Actually the 89% reflects the level of how the project was affected.

The Ministry of Finance stopped project managers from committing government funds.

A number of orders for materials were forwarded to the Ministry of Finance for authorization which was not forthcoming due to cash flow problems.
Thus the project could not continue being executed.

22.6 Unauthorised Over Expenditure on Recurrent Vote Over expenditures beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202(ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head ITEM 20 20 Professional and special services (10) CTA vehicles RELEASED BUDGET (E) 14,352.00 ACTUAL COMMITED EXPENDITURE (E) 19,181.79 OVER EXPENDITURE OVER EXPENDITURE (%) 4,829.97 34 63 186,782.00 304,190.92 117,408.92 Page 103 20 charges (24) CTA vehicle charges (26) 7,177,224.00 12,536,000.30 5,358,776.30 75 It is expected that the Ministry explains the authority allowing it to spend beyond budget provision and Parliament appropriation Act.
In his response, the Controlling Officer cited various reasons that caused the over expenditure.

However, the explanations do not absolve him from having spent beyond the budget provisions, without authority.

Therefore this matter remains reportable.

Page 104 MINISTRY OF ECONOMIC PLANNING & DEVELOPMENT HEAD: 23 Objectives: Planning • To assist Government in deciding upon and implementing economic policies and measures that will best accomplish its major economic and other objectives.
To prepare economic and social development plans and programme for Government's approval; to follow up implementation of approved programmes.

Statistics • To collect and provide statistical information needed for the formulation and implementation of economic and social policies.
23.0 TRANSPORT MANAGEMENT I drew the attention of the Principal Secretary, Ministry of Economic Planning and Development through my report referenced S62A.VoL.III/60 dated 22nd February 2010, that one of the Ministry’s vehicles which cost government a total amount of E141 274.00 was deregistered during the financial year 2008/2009, from the Ministry’s Inventory, because it was alleged to have been destroyed by fire.

The description of the vehicle is shown below Reg.

No.
No.

Make/Model SD 012 UN Toyota Pickup Hilux Vehicle Date Purchased 02-06-08 Purchase Price (E) 141 274.00 for Reasons Deregistration Burnt to ashes Report not made available Accident Report Furthermore, another vehicle that was registered SD 074 UN a Toyota Hilux Pickup was alleged to have been involved in an accident.

The estimated purchase price of the vehicle was E141 274.00.

The vehicle was purchased during the financial year 2008/2009.
However, the accident and police reports were also not available for audit purposes.

(a) Undelivered Vehicle – Toyota Hiace Bus It was further noted that amongst the deregistered vehicles listed in the above analysis, the Toyota Hiace Bus registered SG 037 PL was alleged to have never been delivered by CTA to the Ministry of Economic Planning and Development.

The vehicle was purchased on 6th August 1997 and an amount of E90, 932.80 was paid to the supplier from the Ministry’s vote.
It was disturbing to note that over the years, the Ministry of Economic Planning and Page 105 Development did not take the initiative of either requesting a refund of the E90, 932.80, or making a follow-up on the whereabouts of the vehicle.

At the time of compiling this report the whereabouts of the vehicle remained unknown.
(b) CTA Charges I also reported that a number of vehicles belonging to other Ministries were charged fuel, under the Ministry of Economic Planning and Development’s vote for the financial year 2008/09.

As a result of this anomaly, an amount of E42 700.26 was wrongfully charged to the ministry’s budget.

Below is an analysis of the vehicles which were wrongfully charged under the ministry’s vote Date of Fuel Purchase Vehicle Registration Vehicle Make Fuel cost/litre (E) Total no.
of litres filled Amount Charged (E) 01-06-2007 09-07-2007 18-07-2007 03-07-2007 06-07-2007 06-07-2007 06-07-2007 17-08-2007 16-08-2007 30-08-2007 16-08-2007 03-08-2007 06-08-2007 08-08-2007 11-08-2007 03-08-2007 05-09-2007 06-09-2007 18-09-2007 26 -09-2007 24-09-2007 08-10-2007 27-07-2007 26-10-2007 01-10-2007 23-10-2007 SG 140 NR SG 055 PO SG 020 PO SG 019 PR SG 556 WO SG 531 WO SG 034 CT SG 746 PO SG 601 PO SG 355 HE SG 054 PR SG 044 PR SG 044 PO SG 040 PO SG 003 LE SG 044 PO SG 032 JU SG 068 CM SG 629 WO SG 710 WO SG 066 CM SG 104 TI SG 044 PR SG 021 LE SG 008 PR SG 236 HE Isuzu 4x4 Pick-up Not stated Toyota sedan Toyota sedan Nissan Flat Truck Isuzu Flat Truck Isuzu Roll-back truck Toyota sedan Suzuki motorcycle Isuzu 2x4 Pick-up Toyota station wagon Toyota 4x4 Pick-up Toyota Pick-up Toyota Pick-up Nissan 4x2 pick-up Toyota sedan Toyota sedan Toyota sedan Not stated Toyota Pick-up Toyota Pick-up Toyota Pick-up Toyota Pick-up Isuzu d/ cab Toyota Pick-up Nissan 2x4 Pick-up Page 270-76 135-60 469-55 155-78 322-89 205-51 310-10 177-86 213-82 188-68 218-89 205-13 185-76 195-65 162-84 207-18 213-46 136-25 197-49 207-18 1 324-62 1 602-70 1 909-60 1 612-40 2 173-05 2 875-45 1 849-32 972-40 3160-08 1063-98 2 173-09 1 403-60 2 087-00 1 196-99 1 439-04 1 269-84 1 473-12 1 380-52 1250-19 1 316-70 1 095-90 1 415-08 1 457-95 930-59 1 348-90 1 415-08 291-10-2007 29-10-2007 01-02-2008 25-02-2008 08-02-2008 SG 060 HO SG 132 NR SG 041 PR SG 041 PR SG 165 ED 17-04-2008 SG 001 CM Total Amount Isuzu light truck Toyota 4x2 Pick-up Toyota sedan Toyota sedan Toyota Station Wagon Toyota Station Wagon 7.03 6.83 7.43 7.43 7.43 287-23 155-88 180-61 207-26 149-85 2 019-25 1 064-68 1 342-00 1 540-00 1113-40 8.88 187-78 1 667-50 E42,700.26 The above situation indicates that the Controlling Officer does not undertake any reconciliation with the CTA records.
There were no efforts made by the Ministry to rectify this anomaly at the time of compiling this report.

(c) Cellular/landline Telephone Payments in Excess of Allowable Limits I also expressed concern about payments for residential, landline, telephone bills amounting to E17, 687.77 for the financial year 2007/2008 which were in excess of the authorized limits, in respect of, three officials of the Ministry.

I am not aware of any recoveries of the excess amounts.
The Controlling Officer in his response stated that he did not manage to recover the amounts of E15 382.10 and E2 305.17 owed by the officials’ employment No.3083970 and employment No.

4164478, respectively.

The total amount outstanding is E18, 137.77 inrespect of residential telephone bills.

The details of the excess expenditure on the landlines are:- Employee 3083970 Financial Year 2007/8 Month April May June July August September October November December Total Employee 4164478 Telephone No.
4041173 4041173 4041173 4041173 4041173 4041173 4041173 4041173 4041173 Authorised Limit (E) 1 200.00 1 200.00 1 200.00 1 200.00 1 200.00 1 200.00 1 200.00 1 200.00 1 200.00 Amount Paid (E) 1 867.94 2 402.04 1 798.09 2 975.53 4 007.45 2 798.62 4 939.46 3 405.10 1 988.37 Excess amount (E) 667.94 1 202.04 598.09 1 775.53 2 807.45 1 598.12 3 739.46 2 205.10 788.37 E15,382.60 Page 107 Financial Year 2007/8 Month April May June October Telephone No.
5057615 5057615 5057615 5057615 Authorised Limit (E) 1000.00 1000.00 1000.00 1000.00 Amount Paid (E) 2053.14 1748.10 1444.70 1059.23 Excess Amount (E) 1053.14 748.10 444.70 59.23 E2305.17 The mobile telephone bills were paid to the amount of E57 022.54, beyond authorized limits.

The Controlling Officer only managed to make recoveries to the total amount of E32 767.99 in relation to the mobile phones.

Thus a balance of E24 254.55 was still outstanding, at the time of compiling this report.
Below is an analysis of the amount still outstanding: CELLPHONE NUMBER EMPLOYMENT NO.
AUTHORISED LIMIT PER MONTH (E) AMOUNT PAID (E) EXCESS AMOUNT (E) Page 108 TOTAL AMOUNT PAID IN EXCESS (E) TOTAL AMOUNT PAID LESS PAID ON GR.
NO.

03243286 4 911.60 3 674.19 28 010.81 (21 143.16) 6 867.65 TOTAL AMOUNT PAID IN EXCESS 24 254.55 (d) Double Payments to Mobile Telecommunication Network (MTN) On another note the Principal Secretary’s attention was drawn that the Ministry made double payments to MTN which resulted to an overpayment of E49 127.46, during the financial years 2006/2007 and 2007/08.

Below is an analysis of the double payments Batch No a/c Month Invoice No.

Voucher No.

Cellphone No.
- - Page 109 Amount paid (E) TOTAL OVERPAYMENT 279250 279250 03 10 100118 030026 100114 030027 100118 030026 100114 030027 100115 030027 100115 030027 100115 030027 100115 030027 6062703 6062703 6062710 6062710 6062700 6062700 - - E49 127.46 The Controlling Officer in his response referenced Head 58, dated 29th April 2010 submitted evidence from the Ministry alerting MTN of the double payments.
However, I am still not aware if the overpaid amounts have been recovered.

(e) Non-Existence of Computer Equipment I noted that computer equipment valued E661 450.00 which was purchased by the Ministry from SGL Technologies (PTY) LTD and was paid through voucher 030156, during the financial year 2007/2008.

The whereabouts of the computer equipment was not known by the Ministry yet it was purchased from the Ministry’s budget.

Below is an analysis of the computer equipment.
Date of Purchase Item description Unit price (E) Quantity 27-06-2007 HP DX 7300PA 3.2 GHZ 512 MB, 160GB HDD,17 6 750.00 73 Total amount (E) 492 750.00 Page 110 27-06-2007 27-06-2007 27-06-2007 CRT, WIN XP HP NX9420 DUO PROCESSOR T2600 (2,16GHZ) 1024MB VIEW, BLUETOOTH, 802.11a/b/g, RADEON X 1600256 MB LAN/MODEM.WIN XP(WITH CARRY CASE) 1KVA MEISSNER UPS HP LASERJET 2420 (WITH USB CABLE) TOTAL AMOUNT 15 650.00 2 31 300.00 700.00 4 350.00 72 20 50 400.00 87 000.00 E661450.00 In his response referenced Head 58, dated 29th April 2010, the Principal Secretary submitted a list of computer items that were collected from the Computer Department which were very much different from the ones cited in my inspection report.
At the time of the compilation of this report, computer equipment worth E661 450.00 remained unaccounted for.

Notably, these findings, demonstrate that this Ministry is not prudent in the use of the meagre state resources, to the extent that it is not remorseful to remedy the situation and deter future occurrence.
The Controlling Officer did not respond to my findings after indicating that the matter is referred to Parliament and thus has violated Accounting Instruction 0315 (ii) which states that “it is the duty of all Accounting Officers to reply promptly to any queries addressed to them by the Auditor General, giving fully the information required”.
23.1 Salary Overpayment A memorandum dated 04 May 2011; referenced S62A.Vol.III.73, was issued to the Principal Secretary, Ministry of Economic Planning and Development.

The Controlling Officer did not take corrective action on the following matter.

In my memorandum, quoted above, I reported that an officer whose employment number was 4161891 retired on the 13th February 2011.
The officer received full salary in the months of February 2011 and March 2011 because salary payments were not ceased immediately, thus resulting in a salary overpayment amounting to E31 558.88.

The overpayment occurred between the period 14th February 2011 and 31st March 2011.
In his response dated 17th May 2011, ref Head 23, the Controlling Officer stated that the above matter had already been discussed with the officer and Page 111 he further promised to update my office as soon as the recovery had been made.

I am concerned that the Controlling Officer did not take responsibility to recover the overpayment before the employee left the Civil Service, as per the dictates of the government regulations.
Further, I am confident that the Controlling Officer is aware that any overpaid amount should be recovered immediately.

As an update, in his reply, referenced Head 58, dated 31st October 2011, the Controlling Officer informed me that the officer acknowledged the debt and has started repaying the money.

An amount of E5 000.00 had been paid on General Receipt 04008084, dated 15th August 2011.
He further stated that the officer has applied for early retirement and if granted he will pay the balance from his gratuity.

Therefore an amount of E26 558.88 is still outstanding at the time of writing this report.

Page 112 HEAD 24 MINISTRY OF HOUSING AND URBAN DEVELOPMENT Objectives: To initiate and draft policies and development objectives relating to housing and urban development.

24.0 AUDIT INSPECTION - CAPITAL PROJECT X48799 NOKWANE LAND COMPENSATIONS.
An audit was carried out on the above mentioned Capital Project and a report referenced HICP/5 dated 16th August 2011 was issued to the Principal Secretary, Ministry of Housing and Urban Development.

The purpose of the project was for the payment of compensations to individuals who purchased plots that were situated on portion 1 of Farm 6921 at Matsapha, under the then proposed Nokwane Township, after government repossessed it in 1998.
However, the response referred CEO/NT, dated 8th September, 2011, did not address the following issues, satisfactorily.

(a) Compensations for Properties Zone Commercial I drew the attention of the Principal Secretary that there was no documentary evidence to confirm the plots that were zoned –commercial to authenticate the high compensation amounts.
The response, from the Principal Secretary was not satisfactory because he did not provide any documentary evidence to confirm that the plots were, indeed commercial.

He only alleged that the zoning was done and confirmed by the Ministry of Housing and Urban Development through the Nokwane Technical Committee and the Swaziland National Housing Board (SNHB) acted on the advice and direction of the committee.
The Plots are:- PLOT SIZ E RATE USED ON PLOTS ZONED COMMERCIA L M2 AMOUNT (E) RATE USED ON OTHER PLOTS AMOUNT (E) DIFFEREN CE (E) 15 1 3 2950 3361 4864 132.2 130.0 147 39,000.00 95m2 436,930.00 95m2 715,000.00 95m2 280,250.00 319,295.00 46,080.00 109,750.00 1,117,635.00 252,920.00 Page 113 I also noted with concern, the varying rates per square metre, used to compute the compensation amounts for these properties.
(b) Outstanding Compensations I also raised concern over property owners who never collected their compensations totaling E75 820.00.

There was no explanation what circumstances led to this situation, since funds were available.

The Principal Secretary, in his response only stated that these people did not come to collect their monies when called.

But there was no documentary evidence confirming that the property owners were informed about these monies.
I am concerned that the outstanding compensation, due to individuals, was tarnishing government’s image.

(c) Funds Transferred for Compensations I also brought to the attention of the Principal Secretary, that, a balance of E3,123,038.24 that remained from project funds after compensations were paid and reflected in the financial statement prepared by the Swaziland National Housing Board as at 30 September 2009.

This amount should have been re deposited to the consolidated fund.
A further enquiry into the existence of the money at the SNHB Bank account revealed that the money is no longer available but it was utilized for the SNHB purposes.

However, no authority was produced that permitted the parastal to utilize the money except a verbal promise to send the authority, the next day but nothing came forth, until I wrote this report.

I am concerned that, even in times of serious crisis, due care is not exercised by those entrusted with the responsibility to safeguard Public funds.
It is noteworthy that SNHB did not account for the money transferred into its account for the project The Controlling Officer did not respond to my reference sheet number (29) and thus violated Financial and Accounting Instruction 0315 that stipulates that Accounting Officers should respond promptly to audit queries and give all the information required.
Page 114 24.1 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202(ii).

However, the Ministry violated Government Standing regulations and allowed the occurrence of the following over expenditure.
HD ITEM RELEASED BUDGET (E) ACTUAL/COMMITT ED EXPENDITURE (E) OVER EXPENDITURE (E) 26 26 26 26 CTA vehicle charges (11) Personnel costs (11) CTA vehicle charges (12) Personnel costs (12) 1,127,298.00 2,338,609.95 1,211,311.95 11,322,784.00 3,727,608.00 19,332,045.01 7,381,414.09 8,009,261.01 3,653,806.09 23,830,232.00 34,198,005.81 10,367,773.81 OVER EXPENDI TURE (%) 107 71 98 44 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his reply, referenced FS/298 dated 14th December 2011, the Controlling Officer concurred with my observations.

He cited that the over expenditure to be a result of non wholly release of the CTA budget and unbudgeted overtime allowances.

The issue of the authority which permitted the Ministry to over spend was not addressed.
24.2 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated Government standing regulations and allowed the occurrence of the following over expenditure.
HEAD ITEM RELEASED BUDGET (E) 24 CTA Vehicle charges (41) 1,462,152.00 ACTUAL/COM MITTED EXPENDITURE (E) 4,945,776.40 OVER EXPENDITUR E (E) OVER EXPENDIT URE (%) 3,483,624.40 238 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
Page 115 In his reply, referenced HUD CONF 11, dated 14th December 2011, the Controlling Officer regretted the over expenditure on CTA charges, citing the reasons as being the obligations the Ministry has to carry out.

He stated that the released amount of E1 462 152.00 was less than their request of E2.93 million, causing the over expenditure.

He did not respond to the question of the authority to over spend.

In essence the over expenditure was due to non-reconciliation of expenditure with CTA charges.
Page 116 HEAD: 29 MINISTRY OF COMMERCE INDUSTRY AND TRADE Objectives: Industrial Development - To ensure and promote efficient and sustained Development of the industrial and commercial Sectors of the economy.

Labour Regulations - To develop labour relations policy and administer regulations.
25.0 AUDIT INSPECTION: REGISTRAR GENERAL An audit inspection was carried out at the Registrar General’s Office, and a report referenced R19/7, dated 27th May 2011 was issued to the Principal Secretary, Ministry of Commerce Industry and Trade.

In my report I communicated my concerns about various anomalies relating to the collection of revenue for the registration of companies and renewal of annual company licenses.
However, the Controlling Officer did not respond to my memorandum despite several reminders that were sent to him.

The following issues were raised in the report: (a) Renewal of Annual Company Licences In my memorandum I reported that out of a sample of 750 company files audited, 116 companies were found owing renewals and penalties amounting to E204, 360.00.

This money was outstanding in the financial years 2008/2009 and 2009/2010 respectively.
The same issue of outstanding revenue, in respect of company licences which were not renewed, under this Ministry, was reported in my 2009 audit report.

The revenue outstanding was E973, 920 for the period 13 August 2000 to 29th August 2007.

It is hard to believe that this year, 2011, I have had to report, again, about outstanding revenue, amounting to E204,360.00, arising from non-renewal of company licences.

Page 117 Below is a table depicting the outstanding fees: File No.
Company / File Name Date of Registration Renewal/ Penalty Fees (E) Total (E) Isaa Mawu Pty Ltd R7/31969 R7/28752 Tsunami Invest.

Pty R7/24035 Manile Invest.

Pty R7/24036 Hlamusi Invest Pty R7/24037 Optic business Solutions Pty R7/24038 Sea and Bee Invest.

Pty R7/24039 Trans Swazi Tolly Pty R7/24042 Peral Invest.

Pty R7/28752 Long Pop Pty Ltd R7/28684 Lemag Invest.

Pty R7/26185 Swazi Rubber & Retreading Pty Ltd R7/28397 Misha Invest.

Pty R7/28309 Nifty Invest.


Pty R7/28253 Dumezweni Pty R7/28226 Albatross Invest.

Pty R7/28434 Prisan Invest.

Pty R7/29055 United Technologies R7/31970 Salxol Invest.

Pty R7/31973 Masukane Pty R7/31975 Masik Invest.

Pty R7/31988 TN Digitech Pty R7/31989 Wetworkers S. Seroios Pty R7/31992 SSLTG Invest.
Pty R7/31994 FX Africa Foreign Exchange PTY R7/32026 Huigang Invest R7/32030 Tiles and accessories R7/32049 Sasi Investments R7/32125 Cazago Investments R7/32126 Impendulo Invest Pty R7/32128 Roy Pat Services Pty R7/32130 Matimavu Limited R7/32033 Wit Quality Invest R7/32101 HGM Caterers Pty R7/32107 ABSAMS Carpentry and Joinery Pty Jupitar Construction Ilula Investments R7/32105 Pepch Invest Pty R7/32108 Lucpam Invest Pty R7/32110 Scara Thindwa Foundation R7/32114 R7/32134 R7/32138 Spot-on Services Pty R7/32137 Solmakah Invest R7/32139 Libongwe Invest R7/32140 Vidaf Invest Pty R7/32216 Tatatel aConstruction 22/06/2009 21/03/2005 21/03/2005 21/03/2005 21/03/2005 21/03/2005 21/03/2005 21/03/2005 19/07/2007 04/07/2007 23/07/2006 08/05/2007 13/04/2007 30/03/2007 27/03/2007 11/05/2007 28/09/2007 18/03/2009 26/06/2009 25/06/2009 23/07/2009 25/07/2009 24/07/2009 09/07/2009 16/07/2009 13/07/2009 14/07/2009 11/07/2009 11/07/2009 11/07/2009 12/08/2009 30/08/2009 06/08/2009 06/08/2009 06/08/2009 06/08/2009 07/08/2009 07/08/2009 13/08/2009 13/08/2009 13/08/2009 14/08/2009 14/08/2009 02/09/2009 Page 118 2008/ 2009/ 1,
R7/32267 Lamin Invest Pty R732261 NHT invest Pty R7/32286 Donda Zikodze invest R7/32293 Cleantek Industries Pty R7/32226 Nkomanzi View Enterprises 15/07/2009 15/09/2009 18/09/2009 21/09/2009 09/09/2009 03/09/2009 R7/32217 MKDS Invest Pty R7/32202 Ba-Hla Invest 01/09/2009 R7/32210 Kukhnya kweMdzimba Pty 01/09/2009 08/09/2009 R7/32225 Afriforma Swaziland 11/09/2009 R7/32214 BouyTech Pty 15/09/2009 R7/32266 Werma Invest 17/09/2009 R732282 Fragram Invest 21/09/2009 R7/32286 Aysha Invest Pty 23/03/2005 R7/24044 25/02/2005 R7/24045 O’Afrique Invest 23/02/2005 23/02/2005 23/02/2005 23/02/2005 Jet lag Pty R7/23859 Wind Shield Repairs R7/23858 Franco Construction R7/23860 Water Services Insele Africa Invest 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 1080.00 1080.00 1080.00 Technologies R7/24921 APL Invest R7/24204 Musa and Vumile Construction 24/08/2005 1080.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 800.00 1080.00 1080.00 1080.00 1080.00 1080.00 800.00 1080.00 R7/24205 Cyndaw Invest Imani Invest R7/23862 R7/23863 Ethnic Ciffin Distributors 18/04/2005 24/02/2005 24/02/2005 1080.00 1080.00 800.00 1080.00 1080.00 1080.00 Pty R7/25575 Patton’s Invest Pty R7/25101 Golden Butchery Pty R7/25581 Dameta Invest R7/28123 Luvatsi Import and Export 25/02/2005 22/09/2005 06/12/2005 07/03/2007 Pty R7/28121 Nkombe Invest R7/28120 Bhembe Invest Pty R7/28118 Kholekakuhle Invest R7/28116 Pinecrest Invest R7/28143 Menclip Invest Pty R7/28142 R7/28176 Engineering World Industrial Supplies Indilinga Invest R7/28175 Nine 27 Supplies R7/28174 C.W.
Ducker and Associates IFAW Holdings Swd R7/25989 Etzo Investments Imbabala Security R7/26077 R7/25985 Aw Lean Properties R7/25983 Embiteni Invest Pty R7/25982 Lontombi Invest R7/26018 Cape of good Invest R7/26016 W.M.A.
Invest R7/28215 Fezamaphupho Invest R7/28224 Hlane Investments 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 07/03/2007 07/03/2007 07/03/2007 07/03/2007 14/03/2007 14/03/2007 19/03/2007 19/03/2007 19/03/2007 1080.00 1080.00 1080.00 1080.00 19/03/2007 28/02/2006 13/03/2006 13/03/2006 28/02/2006 28/02/2006 06/03/2006 02/02/2006 26/03/2006 27/03/2007 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 Page R7/28221 Southern Africa Driver 27/03/2007 1080.00 1080.00 2, 160.00 Empowerment Federation Pty R7/28220 Khubuta Agricultural 27/03/2007 1080.00 1080.00 2, 160.00 Industrial Pty R7/25791 Skitot Copiers Pty R7/24199 Kapco Enterprises R7/24146 Soda Investments R7/24147 Ants Investments R7/24148 BZM Television R7/24151 Double J Building R7/25513 Elimiz Distributors R7/25412 PVM Distributors R7/25572 Msandi’s Kitchen R7/25579 MS&N Investments R7/28363 Towncklons Invest R7/28580 Swaziland mining R7/24927 Msebenzi Wholesalers R7/24929 Hensi Investments R7/24930 Welly R7/23980 Ntsabane Invest R731902 Incredible Loan Masters Pty Ltd 28/02/2006 18/04/2005 08/04/2005 08/04/2005 08/04/2005 08/06/2005 24/02/2005 24/02/2005 02/12/2005 02/12/2005 26/04/2007 13/06/2007 25/08/2007 25/08/2005 25/06/2005 14/03/2005 26/09/2009 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00 1080.00
R7/31904 Eradication of Pests & 29/06/2009 800.00 880.00 1, 680.00 Hygien Specialists Jafel Invest R7/31905 R7/31907 Madolo Fortune Invest R7/31909 Sibam Invest R7/31911 Sangoti Food Services Pty Ltd R7/32155 Ezaleni Investments TOTAL 30/06/2009 30/06/2009 01/07/2009 21/07/2009 18/08/2009 800.00 800.00 800.00 880.00 880.00 880.00 600.00 1, 680.00 1, 680.00 1, 680.00 600.00 102,440 600.00 600.00 101,920 E204, 360.00 After being made aware that the matter is reportable to Parliament the Controlling Officer in his reply, referenced MCIT/18/3/4 dated 23rd December 2011, responded to the reference sheet (32) as follows:- The Controlling Officer acknowledged my observation and pointed out the following:- (i) (ii) The Ministry prepared statements of arrears and notices of deregistration for defaulting companies, however, due to lack of funds he could not mail the letters to the companies.
A sample of the letters which were prepared between July and August 2011 were attached.

In addition, due to lack of transport and fuel he was unable to conduct physical inspections.

Using the automated system linkages, the issuance of Trading Licences is now linked with Company Licences.

The Ministry therefore believes that the defaulting companies are actually not trading as Trade Licences are normally issued if there is no certificate of renewal for Company Licence.
Page 120 In this regard therefore the Ministry is in the process of deregistering the defaulting companies through a notice to be published in the media as soon as funds become available.

Consequently he does not believe there will be any monies collectible by Government.

It is noteworthy that the under collection of government revenue, through evasion by clients/companies contributes to the depletion of financial resources, leading the deficit and financial crisis.
(b) Unauthorised Study Leave I also brought to the attention of the Controlling Officer that the Accounts Section in the department only operated on Wednesdays and Fridays because the Accounts Officer employment number 3306185 was enrolled at the University of Swaziland, where she was studying Commerce, on a full time basis and worked once a week.

However, there was no authority for study leave made available or produced.
I also noted that the Accounts Officer was paid full salaries amounting to E208, 752.00, for the three years, while studying on a full time basis.

Further, I pointed out that the Accounts Officer claimed overtime during her study period for no service rendered.

The tables below show the payments made to the accounts officer.
Table 1: Salary Paid Period of Study Salary Paid (E) 2007 / 2008 2008 / 2009 2009 / 2010 Total Table 2: Overtime Paid 60, 489.00 68, 844.96 79, 418.04 E208, 752.00 Date of Salary Overtime period Overtime Amount Paid (E) April 2007 June 2007 June 2007 July 2007 August 2007 March 2008 April 2008 May 2008 July 2008 September 2008 Total Cheque payment Cheque payment 26/05/07 – 27/05/07 03/06/07 – 23/06/07 06/07/07 – 15/07/07 09/02/08 – 24/02/08 01/03/08 – 30/03/08 06/04/08 – 06/04/08 115/06/08 – 15/06/08 12/07/08 – 12/07/08 Page 121 3, 524.79 3, 971.30 1, 015.42 806.78 368.61 2, 449.99 2, 449.99 628.95 658.90 397.08 E16, 270.91 General Orders state that public officers should be nominated by Government to go on study leave.
A.

371 (1) further states that: “If an officer wishes to undertake a course of training or instruction which is primarily in his own interests, and for which he has not been nominated by the government, he shall be required to do so during a period of vacation leave……..” The Controlling Officer noted the issues raised concerning the alleged lack of authorization for the officers’s study leave and non staggering of salary during the “three year” period.
According to information in their possession the officer signed a bonding agreement for the study leave period from August 2008 to May 2010, which suggests that Government did sanction her study leave (copy was attached).

She was further granted an extension of one year commencing August 2011 to May 2012.
He requested me to note that the management of the officer’s training plan involves the office of the Accountant General since she belongs to the Accountancy Cadre (A copy of the letter from Accountant General regarding staggering of salary was enclosed.
He further stated that his Ministry is continuing with its investigations and will submit another report pertaining to this issue, once they are through since some of my observations, particularly relating to over time claims, occurred while the officer was working under a different Ministry, they undertake to deduct any monies she may have gained irregularly and update my office on progress.
Based on the Controlling Officers comments that, investigations were still on going, the matter has not been resolved.

At the time of compiling this report I was not aware of any adjustments effected in addressing the error.

25.1 Unauthorised Overexpenditure on Recurrent Vote Over expenditures beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).
However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item 28 28 28 28 CTA Vehicle Charges (11) CTA Vehicle Charges (14) CTA Vehicle Charges (22) Personnel Costs (22) Released Budget (E) 41,164.00 Actual/Committed Expenditure (E) 48,293.91 Over Expenditure (E) 7,129.91 Over Expenditure (%) 17 - - - 3,040.17 2,356.99 3,040.17 2,356.99 13,963.58 13,963.58 100 100 100 Page 122 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
Further, it is disturbing to note that funds for CTA charges were released and there was expenditure incurred from Head 28 – Enterprise and Employment for CTA charges and Personnel Costs.

The Ministry of Enterprise and Employment is non-existent during this period of ninth (9th ) Parliament of the Kingdom of Swaziland.
In his reply, referenced CIT 18/3/4, dated 12 December 2011 the Controlling Officer concurred with my observation but denied knowledge of the transaction under Head 28, which is a defunct Ministry.

He promised to liaise with the office of the Accountant General and the Computer Department to assist him in this matter.
However he neither mentioned the authority that allowed him to over spend nor provided me with explanation about who benefited from the expenditure incurred, since the Ministry is non existent.

Page 123 HEAD: 30 MINISTRY OF EDUCATION AND TRAINING Objectives: To provide facilities and training for the purpose of increasing the general level of education.
26.0 AUDIT OF CAPITAL PROJECT E38099 – ENTITLED INSTALLATION OF A SECURITY SYSTEM IN THE MINISTRY OF EDUCATION AND TRAINING An audit inspection was carried out on Capital Project E38099 entitled “Installation of a Security System in the Ministry of Education and Training” and a report referenced E7.C.P.1 dated 18th October 2010, was issued to the Principal Secretary, Ministry of Eduaction.

The Principal Secretary, in his response, referenced EA.
15/5/1/16, dated 15th November 2010, concurred with my observations.

The Controlling Officer in his reply, referenced EA.15/5/1/16 dated 15th November 2010, agreed that this was an anomaly and regretted that this anomaly happened.

However, he promised that this anomaly will not happen in the future and also promised to abide by the laid down regulations.
(a) Misappropriation of Project Funds In my report referenced above, I stated that an amount of E900,000.00 was released during the financial year 2009/2010 for an installation of a security system.

The actual expenditure amounted to E899,438.99 resulting to an under expenditure of E561.01.
It was noted that part of the project funds amounting to E37,487.99 were used for purchasing office furniture and partitioning of an office without obtaining authority from the Ministry of Economic Planning and Development.
The expenditure was as follows:- Quantity 4 Supplier Electro Dynamic Projects 1 32m 32m 1 Electro Dynamic Projects Peace Distributors Peace Distributors Kallote Distributors Description Executive Armchair with aluminium and base castors swivel seat Deep pedestal armchair Sensation carpet Underlayer Partitioning of office 119- 4160 x 2570x 100 Amount (E) 10,580.00 3,220.00 11,800.00 3,888.00 7,999.99 E37,487.99 Page 124 This indicates that the Ministry over budgeted in order to use the Capital Project funds for items that are outside the scope of the Project.
This violated Financial and Accounting Instructions number 0202 (iii) which states that Controlling Officers must ensure that public monies are spent for the purpose for which they are authorized.

It should be noted that a diversion of funds is a serious discrepancy which cannot be overlooked because the money was used for recurrent expenditure which does not contribute to development.
26.1 Audit Inspection – Ntfonjeni National High School For The Calendar Year Ended 31st December 2008 An audit inspection was carried out at Ntfonjeni National High School, and a management letter, referenced P10B.Vol.IV.60, dated 23rd April 2010, was issued to the Principal Secretary, Ministry of Education.

The Principal Secretary did not respond satisfactory to the following observations.
(a) Undelivered School Computers In my report quoted above I mentioned to the Principal Secretary that the school made payments in four installments to Wisertron Technologies (Pty) Ltd, for computers amounting to E215 000.00.

The school did not receive the computers whereas payment was made.

My concern was raised on the payments made which were neither supported by receipts nor invoices, to authenticate the cost of the computers.
This was a violation of School’s Accounting Regulations which states that incurred expenditure should be supported.

Furthermore, though there is an existence of a computer laboratory but it was not functional since there were no computers, implying that pupils were deprived a chance of learning the computer skills that were set in the prevocational syllabus.

Taking into account that parents had paid for the prevocational subjects, it is a loss to the parents.
Below were the payments made for the computers bought.

Date 13/02/2008 25/03/2008 16/07/2008 23/07/2008 Cheque no 3776 4010 4115 4129 Total Amounts (E) 40 000.00 60 000.00 15 000.00 100 000.00 E215 000.00 (b) Rental of School Hall and Furniture In the same report I pointed out that rent collected for the usage of the School Hall and furniture was not banked although receipts were issued.
On the 29th July Page 125 2008 the League of churches paid E400.00 for renting the school hall and on the 21st August 2008 Mazibuko Thandekile, also paid E400.00, for rental of two hundred school chairs.

Also, I could not ascertain whether the fees charged for the rental of these school resources were proper because the rental tariffs set by the school could not be obtained.
The revenue collected in respect of the property rental was not properly accounted for by the Head Teacher, and there was no record of income and expenditure as a result the usage of revenue collected could not be established.

Therefore, the Head Teacher violated section 6.1 of the School Accounting Regulations that prohibits usage of revenue before banking.
(c) Unsupported Expenditure I further pointed that various payments amounting to E99 448.35 were made without the necessary supporting documents, such as, receipts and invoices.

The expenditure was therefore not accounted for.

Therefore, I could not ascertain that the expenditure incurred and goods paid for, benefited the school.

The breakdown of unsupported expenditure is as shown below:- Date 04/02/08 05/02/08 09/07/08 01/04/08 04/02/08 08/02/08 07/02/08 12/02/08 29/07/08 23/07/08 Cheque No.
3751 3757 04111 04029 03754 03772 3769 03778 04142 04130 Payee Atlas Electrical P.B.K.N.
Investments Fakudze Lungile Dlamini A.M. UNISWA Masilela Nomvula Cashbuild Multi-Skills Investment Vilakati John Velem Investments Total Cheque Amounted (E) 22 000.00 649.00 2 500.00 2 350.00 7 500.00 2 000.00 3 793.00 25 000.00 1 200.00 32 456.35 E99 448.35 (d) Ntfonjeni Rural Education Centre During the audit I found that the centre offers a six months computer learning program which is conducted twice a year at E1 800.00 tuition fee per student per program.
I observed that proper accountability was not practiced at the centre and there were no records maintained in respect of the revenue collected.

Page 126 (i) Revenue Collected The audit revealed that during the year under review 16 students enrolled with 8 students per program.

However, 3 of the students failed to pay the tuition fees and did not sit the examinations.

Therefore an amount of E23 400.00 was collected during this year, 2008.
However, an amount of E13 150.00 was collected by the centre, as per the receipts provided for the audit and was not accounted for since no record was maintained and the money collected could not be traced into the bank account.

The difference of E10 250.00 could not be authericated since even the bank statements were not fully availed for audit purposes.

Also, noted was that the receipts used when collecting the revenue were not the official receipts prescribed by the Schools Regulations.
Moreover there was no cash safe, at the centre, to keep the revenue.

The revenue was kept in a desk drawer and was exposed to the risk of theft.

At the time of reporting it was not clear what action had been taken to address this matter.

(ii) Expenditure File The Centre did not maintain an expenditure file yet this is a record meant to ensure accountability and transparency of expenditure incurred by the school.

Therefore, stakeholders are deprived of the knowledge of activities financed by the school.
Expected revenue collected under this centre was E23 400.00 per annum.

However, receipts found at the centre to account for tuition fees in respect of the computer lessons amounted to E13 150.00 for the 2008 school year.

But as at 3rd January 2009 the bank statement reflected a bank balance of E3 584.23 held at a bank current account number 1110322345901 at Swazi Bank yet expenditure receipts/invoices amounted to E2 439.00.
This indicates that the money is used, without supporting documents, before banking, which the regulation prohibits.

Therefore it could not be ascertained whether the expenditure was relevant to the activities of the centre.

Further, non accountability of the money perpetrates fraud and renders the transaction untraceable.

The Controlling Officer did not respond and thus violated Financial and Accounting Instruction no.
0315 (ii) which states that “it is the duty of the Accounting Officers to reply promptly to any queries addressed to them by the Auditor General giving fully the particulars of information desired”.

Page 127 26.2 Audit Inspection – Peak Central Primary School for the year ended 2008 An audit inspection was carried out at Peak Central Primary School, and a report referenced P10A.Vol.V11.24 dated 8th January 2010 was issued to the Principal Secretary, Ministry of Education.
In his response the Principal Secretary did not satisfactorily address the following issues.

In response, the Controlling Officer attached a copy of the response from the Headteacher, dated 22nd October 2011, which had been quoted by me as unsatisfactory to the concerns raised in the inspection report.

Therefore this matter remains reportable.

(a) Funds Withdrawn in Excess of the Expenditure Incurred A total expenditure of E18 779.70 was incurred by the school.
However, an expenditure amounting to E1 658.60 was not supported by either receipts or invoices The breakdown of unsupported expenditure is shown below: Date Cheque no.
Payee Cheque Amount (E) Total supporting documents (E) Unsupported Amount (E) 23/01/08 2832 Lucky Save Cash & 3 149.95 3 134.00 15.95 Carry 04/03/08 08/05/08 2864 Zikalala December 2904 Lucky Save Cash & 20/06/08 10/07/08 17/07/08 12/08/08 15/09/08 16/10/08 20/10/08 21/10/08 Carry 2931 Zikalala December 2942 Ming Sheng 2945 Dlamini Nomvula 2950 Sibandze Ambrose 2956 Lucky Save 2979 F & R Printers 2986 Buy Cash 2987 Ming Sheng Total 1 390.00 1 652.90 4 747.00 600.75 800.00 200.00 3 906.50 330.00 682.00 1 320.60 1 8779.70 1 263.57 1 612.90 4 199.40 557.50 586.83 - 3 833.60 - 634.90 1 298.40 17 121.10 126.43 40.00 547.60 43.25 213.17 200.00 72.90 330.00 47.10 22.20 E1658.60 As per resolution, by the Ministry, the Head teacher refunded an amount of E581.00 in relation to the unsupported expenditure, into the schools account on 24th October 2011.
He alleged that the amount of E1 077.00 was not refunded because the schools committees, old and new, agreed in a meeting held on 14th October, 2011, that this money was used for the school.

Page 128 However, no supporting documents were furnished to confirm this assertion.

(b) Expenditure above E2 000.00 It was observed that expenditure above E2 000.00 amounting to E30 786.20 was not authorized and minuted by the School Committee, as prescribed by the Schools Accounting Regulation 12.2.
The table below shows such expenditures: Date 23/01/08 Cheque no.
2832 31/01/01 17/02/08 25/02/08 18/03/08 08/05/08 6/05/08 11/09/08 2838 2848 2861 2879 2903 2909 2956 18/09/08 2961 06/10/08 2973 Payee Lucky Save Cash & Carry Websters Dlamini Mark Ming Sheng Investment Burning Bush Ming Sheng Mdu’s Investments Lucky Save Cash & Carry Dlamini Nomvula Websters Total Zondle Groceries Stationery Loan to Head teacher Zondle Groceries Uniform (School) Groceries Cleaning material Zondle Groceries Home Economics Practicals Stationery Amount (E) 3 149.95 6 237.75 3 500.00 2 046.25 2 620.00 2 822.25 2 503.50 3 906.50 2 000.00 2 000.00 E30 786.20 The Head teacher submitted that he was given the mandate with the chairperson by the old school committee in a meeting held on 22nd February 2007 to incur expenditure above E2 000.00 because other members were at work and did not turn up for the meeting.
Further on 14th October 2011, a meeting was then held by the old and new school committees where consensus was reached about this matter and the expenditures minuted again.

However I was not furnished with the minute authorizing this expenditure to normalize the situation.

(c) Loan to Head Teacher The head teacher was loaned E3 500.00 on the 17th February 2008 from, the school fund Account.

He only repaid an amount of E1 500.00.A balance of E2 200.00 was still outstanding at the time of the audit.
The above mentioned loan was not authorized since it was not authorised in the School Committee’s minutes, thus violating Schools Accounting Regulation 12.0.

At the time of audit there was no documentary evidence produced which confirmed that the amount of E2 200.00 was fully settled.

Page 129 The Head teacher apologized about this issue and stated that the outstanding balance of E2 200.00 was paid into the school account on 12th April 2010 and attached the bank deposit slip and the bank statement.
(d) Unauthorised Payment In the year 2008 the school held a farewell function for a teacher, Ms Methula who was retiring.

An amount of E6,230.00 was collected for the farewell function and was accounted for, on receipt numbers 1962101 to 196200.

Total expenditure for the farewell function amounted to E11,853.80 which led to an over expenditure amounting to E5,623.80.
The amount of E5,623.80 was not authorized by the School Committee, since it was not budgeted for and was not authorized by the parents, who are the financiers of the school, thus violating Schools Accounting Regulation 12.2.

The response, by the Head teacher, stated that the old school committee pointed out that they knew this money.

They had agreed that they would get the money from the rental which is collected from the old school situated at A4.
He stated that this agreement was done at a meeting held on 16th April 2008.

The minutes of the meeting at which this matter was deliberated were attached.

However, I am not aware of any conset given by the parents, who are the financiers of the school, allowing this expenditure.

(e) Orphans and Vulnerable Children (O.V.C) Fund 0n 21 August 2009 an amount of E19,500.00 was deposited in School Bank Account of Piggs Peak Central Primary.

The deposit was for the payment of 60 OVCs.


Out of the 60 OVCs there were three pupils who were not in the School Enrolment Register but each child benefited E325.00 which resulted to an amount of E975.00 not accounted for.

This money was never refunded to government coffers.

Below is the list such pupils: Name of pupil Jiyane Bonginkosi Mhlanga Oscar Dlamini Siphiwe Grade 6 2 1 Total Amount (E) 325.00 325.00 325.00 E975.00 The response stated that the first two pupils were not ghosts.
Only the names were a problem because they used other names and thus the pupils used the money and therefore there was no need to pay it back.

Page 130 The third child was admitted in that year but disappeared without informing the school.

Since, he never used the money, the school committee requested the headteacher to pay the money back to government on DPM’s account which he did on 24th October 2010.

The receipts and bank deposit slips were attached.


(f) Denied Access to School Records – Sulutane Primary School My office visited the school on the 5th October 2009 for audit purposes but was unsuccessful because the Headteacher alleged that the school records were left at home for safety reasons, as there were some rats which might destroy the records.

Again, an appointment with the Headteacher was made by the Audit team to avail the school records on the 12 October 2009, for examination.
However, on the agreed date 12 October 2009, the Headteacher did not report for duty for unexplained reasons.

He further failed to exercise courtesy to inform the Audit Team, before the meeting date, that he would not be available.

Also discovered was that even the Lubombo Regional Education Officer was not aware of his absenteeism.
I then contacted the Principal Secretary, Ministry of Education and Training to request the Headteacher to avail the school records for audit inspection on or before 31st December 2009.

Indeed the Principal Secretary instructed the Headteacher through a letter dated 22nd December 2009 but he did not comply with the Controlling Officer’s instruction.
After three attempts to examine the school records had failed, a reminder reference 517A Vol.V/4 dated 23 April 2010 was further issued to the Principal Secretary, Ministry of Education and Training to make convenient arrangements for the audit inspection to take its course but all my efforts proved futile.

I am concerned that though the school handles public funds, the Controlling Officer did not put enough effort to make the audit successful in order to account for the public moneys.
This also contributes to poor corporate governance.

It is noteworthy to mention that records from the Ministry of Education and Training revealed that in addition to the fees paid by parents, Sulutane Primary School had received an amount of E66 950.00 in 2009 and E33 620.00 in 2010 school year in respect of Orphaned and Vulnerable Children OVC educational grant for school fees and examination fees.
Further, it is evident that this act was intended to conceal some misdemeanor, in this school, which cannot be overlooked.

Finally, I was denied access to the school records despite that I am mandated by the Constitution of the Kingdom of Swaziland and the Audit Act to access the Page 131 public accounts of Swaziland of all offices courts and authorities of the Government in order to discharge my statutory obligation.
In his reply referenced EF/10, dated 7th November 2011, the Controlling Officer informed me that on 30th August 2011 he engaged the Headteacher Mr Mangaliso Sihlongonyane and gave him a copy of the reference sheet so that he could assist in responding to it.

The Ministry requested the Headteacher to prepare a response to the issues raised and return the responses by 5th September 2011.

To date he has not received the response despite many reminders.
It could be that the Headteacher is currently under supervision and his matter is with the police who are investigating a case of arson, since the school office with all official books was burnt down.

The case has not come before a court of law and the Headteacher is out on bail.
However, it is apparent that the funds were deliberately mis-managed and the books were burnt down to conceal evidence, which is a criminal offence, while the effort of the Controlling Officer, is applauded, that is, to report the matter to the police for investigation, the matter remains reoportable.

26.3 Audit Inspection – Nhletjeni Central Primary My office conducted an audit inspection at Nhletjeni Central Primary School on the 27th July 2010.

A report referenced N15A.Vol.I.


dated 26th October 2010 was then issued to the Principal Secretary, Ministry of Education.
In my memorandum quoted above, I communicated my findings to the Controlling Officer that a total amount of E44 013.00 and E23 270.00 was owed to government due to payment of unathorised housing allowances to teachers who were accommodated by the school and non payment of rent by certain teachers, respectively, as follows:- (a) Housing Allowance I pointed out that certain teachers whose employment Numbers are 8736776, 6673398 and 7405169 received housing allowance yet they are accommodated by the school.
As a result an unauthorized housing allowance received by the teachers have accumulated to E44, 013.00 for the period between 1st February 2003 to 31st may 2006.

Table showing received housing allowance Employment No.
8736776 Teacher’s name Philani Ndzabandzaba Year of occupation May 2006 Months Owed/Rate Total (E) May-Dec 2006 8 months x 185 Jan –Oct.2007 10 months x185 Housing back pay (for 1,480.00 1,850.00 Page 132 1 month) E185 was paid in Oct instead of E601 =( 601-185) Nov - Dec. 2008 2 months X 601 Jan - Dec 2009 12months x 601 Jan - Dec 2010 12 months X 601 Jan – Nov 2011 11 months X 601 Back pay from Sept 2010 to April 2011 (8 months X 601) May – Nov 2011 7 months X 601 Back pay from Sept 2010 to Apr 2011 (8 months X 601) May – Nov 2011 7 months x 601 416.00 1,202.00 7,212,00 7,212.00 6,611.00 E25,983.00 4,808.00 4,207.00 E9,015.00 4,808.00 4,207.00 E9,015.00 E44,013.00 Total 6673398 Petros Masuku February 2003 Total 7405169 Treasure Masuku Jan 2007 Total Grand Total (b) Rent Owing Also noted was that this school allowed some teachers to stay in Institutional houses without paying any rent.
On this note the Head Teacher violated School Accounting Regulations 2.4 which states that “the head of school will inform the Teachers’ Salaries Supervisor and Regional Education Officer immediately following the allocation and or change of house at the school….” To date rent arrears have accumulated to E23, 270.00 for the period between 1st February 1991 to 31st July 2009.
Table For Non Deduction of Rent Employment no Teacher’s name Occupation date Rate / months Total ( E ) 00408781 Elizabeth Mngometulu Feb 1991 sharing / Feb 1991- Dec 1999 107 months X 13 Jan 2000 – Dec 2009 1,391.00 1,560.00 Page 133 7407219 Welile Simelane July 2009 sharing / 7169843 Ruth Sithole Feb 1998 sharing / 120 months X 13 Jan 2010 – Dec 2010 12 months X 13 Jan – Nov 2011 11 months X 13 Total Jul 2009 – Dec 2009 6 months X 13 Jan 2010 – Dec 2010 12 months X 13 Jan – Nov 2011 11 months X 13 Total Feb 1998 – Dec 1998 11 months X 13 Jan 1999 – Dec 1999 12 months X 13 Jan 2000 – Dec 2009 120 months X 13 Jan 2010 – Dec 2010 12 months X 13 Jan – Nov 2011 11 months X 13 Total 6733100 Betty Nxumalo Jul 2008 / not sharing Jul 2008 – Dec 2008 6 months X 26 Jan 2009 – Dec 2009 12 months X 26 Jan 2010 – Dec 2010 12 months X 26 Jan – Nov 2011 11 months X 26 156.00 143.00 3,250.00 78.00 156.00 143.00 377.00 143.00 156.00 1,560.00 156.00 143.00 E2,158.00 156.00 312.00 312.00 286.00 Total E1,066.00 6462765 Stella Mbingo Jan 2000 sharing / Jan 2000 – Dec 2010 132 months X 13 Jan – Nov 2011 11 months X 13 1,716.00 143.00 Total E1,859.00 7405169 Treasure Masuku Jan 2007 / not sharing Jan 2007 – Dec 2009 36 months X 26 Jan 2010 – Dec 2010 12 months X 26 Jan – Nov 2011 11 months X 26 936.00 312.00 286.00 Total E1,534.00 6697118 Thabsile Jan 2002 / Jan 2002 – Dec 2009 1,248.00 Page 134 Dlamini sharing 96 months X 13 Jan 2010 – Dec 2009 12 months X 13 Jan – Nov 2011 11 months X 13 Total 6711416 Nobuhle Nhleko Jan 2002 / not sharing Jan 2002 – Dec 2009 96 months X 26 Jan 2010 – Dec 2010 12 months X 26 Jan – Nov 2011 11 months X 26 156.00 143.00 E1,547.00 2,496.00 312.00 286.00 Total E3,094.00 6911410 Nozipho Mbingo July 2009 / sharing Jul 2009 – Dec 2009 5 months X 13 Jan 2010 – Dec 2010 12 months X 13 Jan – Nov 2011 11 months X 13 Total 6673398 Petros Masuku Feb 2003 sharing / Feb 2003 – Dec 2009 84 months X 13 Jan 2010 – Dec 2010 12 months X 13 Jan – Nov 2011 11 months X 13 65.00 156.00 143.00 E364.00 1,092.00 156.00 143.00
 Total E1,391.00 4356994 Redeemed Mthimkhulu Jan 1981 sharing / 6162063 Elphas Sithole May 1998 sharing / It is Jan 1981 – Dec 2009 336 months X 13 Jan 2010 – Dec 2010 12 months X 13 Jan – Nov 2011 11 months X 13 Total May 1998 – Dec 2009 128 months X 13 Jan 2010 – Dec 2010 12 months X 13 Jan – Nov 2011 11 months X 13 4,368.00 156.00 143.00 E4,667.00 1,664.00 156.00 143.00 Total E1,963.00 Grand total E23,270.00 worrying that the Head teacher who is the accounting officer of the school is not exercising due care to follow necessary procedures to collect rent from the teachers who occupy the houses in the school in conformity with the schools Page 135 accounting regulations.
As a result government is being deprived the revenue to finance its activities.

The Controlling Officer informed me that the payment of housing allowance has been stopped and the unjustified housing allowance will be recovered.

In addition the Ministry has processed deduction of rent from those teachers who were not paying rent.

I am not aware if the deductions have been duly implemented.
26.4 Audit Inspection – Swaziland College of Technology An audit inspection at Swaziland College of Technology was conducted and a report referenced P10B Vol.VI/15 dated 14 July 2011 was issued to the Principal Secretary, Ministry of Education and Training.

However, the following anomalies were not addressed though the Principal Secretary, Ministry of Education concurred with my findings.
(a) Withheld College Results By City and Guilds In my report quoted above, I expressed concern over unreleased college results, in respect of students who sat for City and Guilds examinations, during the academic years, 2007/2008,2008/2009 and 2009/210, because the Swaziland College of Technology is still owing registration examination fees amounting to E38, 400.00.
The debt owed to the City and Guilds resulted from SCOT part time students including private students from:- • Bosco Skills Centre • Mpaka High School • Birch Cooper Institute • Manzini Youth Care and • MUC College The students quoted above were alleged to have registered for the examination because a certain lecturer, at the Swaziland College of Technology, collected cash from those students who were supposed to make deposits into the revenue account as per procedure.
During these academic years the outstanding examination fees were E316, 210.00 but the college managed to reduce the debt by E239 410.00 leaving a balance of E76, 800.00.

After a lengthy discussions between the College and the Board of City and Guilds, the Board wrote off an amount of E38, 400.00, which was half of the outstanding balance.

Page 136 The remainder of E38, 400.00 owed to the City and Guilds has not been settled to date.
Consequently the results and certificates are still withheld by the City and Guilds Board to the detriment of the students.

It is evident that the examination fees were mismanaged in this College and as a result these students, who sat for the examinations during this period were defrauded their opportunities for advancement.

It is noteworthy, to mention that the students were deprived their education and future.
Also, parents’ efforts in paying tuition fees, to upgrade the standard of living for their children was jeopardized, because their monies went down the drain.

The response, by the Controlling Officer revealed that the remainder, amounting to E38 400.00, which was still owed to the City and Guilds was settled by government and consequently the withheld results and certificates were released.
Though the Ministry’s intervention, to rescue the situation is commendable, I consider the money paid, as a result of mismanagement of funds, to be a loss to government and unfair to the tax payers.

I am not aware if the Ministry has reported the loss, as per Financial and Accounting Regulations.

Also he did not state the action taken against the implicated official who collected the examination fees from the students but did not remit to the City and Guilds, the Examination Board.
Further, to date, no one has been held accountable for this serious misdemenour, despite that the investigation report revealed some misconduct, by the Senior Lecturer, which could be the root cause of the anomaly.

It is noteworthy that, it is these losses which might be considered minute but in totality may pose serious repercussions on the government resources, as a whole and therefore each episode deserves to be taken seriously.
26.5 Audit Inspection: Gwamile Vocational & Training Centre An audit inspection was conducted at Gwamile Vocational and Commercial Training Institute Matsapha (VOCTIM) and a report ref E7 VOL.IV/36 dated 22nd April 2010 was issued to the Principal Secretary, Ministry of Education and Training.

However, the following irregularities which were brought to the attention of the Controlling Officer were not addressed.
Page 137 (a) Unauthorised Housing Allowance The Government’s policy regarding housing allowance is that an officer who is accommodated in a government quarter shall not be eligible for payment of a housing allowance.

However, the Principal Secretary, Ministry of Education and Training violated the laid down regulations by spending public funds for the payment of Housing allowance to two (2) officers whose employment numbers are 4736255 and 3259375.
These officers were allocated government quarters since December 2008 and are currently occupying the houses and yet at the same time they are receiving housing allowance.

The unauthorized housing allowance received by the employees has accumulated to E11, 419.00 and E4, 465.00 respectively, for the duration of twenty one months (21) from 1st December 2008 to 30th June 2010.
Despite that the matter was brought to the attention of the Principal Secretary, Ministry of Education and Training nineteen (19) months ago, no corrective action had been taken to recover the unauthorized housing allowances, until I resolved to take the matter to Parliament.
Housing Allowance Below is the unauthorised Housing Allowance Employment number 3259375 Occupation date Dec 2008 to Jun 2010 4736255 Dec 2008 to Jun 2010 Housing allowance rate X months (E) Dec 2008 – Dec 2009 13 months X 235 Jan 2010 – Jun 2010 6 months X 235 Total Dec 2008 – Dec 2009 13 months X 601 Jan 2010 – Jun 2010 6 months X 601 Total Total amount paid (E) 3,055.00 1,410.00 4,465.00 7,813.00 3,606.00 11,419.00 Grand Total 15,884.00 The Controlling Officer has stopped the payment of the illegal housing allowance and is recovering the amount paid.
(b) Rental Owing Page 138 In the same report, I also pointed out that the same officers, employment numbers 4736255 and 3259375 who received the housing allowance were not paying rent yet they are occupying government quarters at VOCTIM, house no.DY505 Rental arrears for both officers have accumulated to E494.00 and E988.00 respectively for the period 1st December 2008 30th June 2010.

Another officer, employment no.3521412 owes rent yet she is occupying hostel no.3 (three) at VOCTIM.
The rental arrears for 70 months have accumulated to E1, 716.00 between 1st January 2005 to 30th June 2010.

To date rental deductions have not been effected despite that one of the Controlling Officer’s responsibility is to ensure that revenue is collected and promptly brought to account.
Details of the rent owing are as follows:- Owed Rent Employment number 4736255 Occupation date/ Room no Housing rent rate X December 2008 to June 2010 Hostel no 1 months (E) Dec 2008 – Dec 2009 13 months X 26 Jan 2010 – Jun 2010 6 months X 26 Total Dec 2008 – Dec 2009 13 months X 52 Jan 2010 – Jun 2010 6 months X 52 Total Jan 2005 – Dec 2005 12 months X 26 Jan 2006 – Dec 2006 12 months X 26 Jan 2007 – Dec 2007 12 months X 26 Jan 2008 – Dec 2008 12 months X 26 Jan 2009 – Dec 2009 12 months X 26 Jan 2010 – Jun 2010 6 months X 26 Total amount paid (E) 338.00 156.00 494.00 676.00 312.00 988.00 312.00 312.00 312.00 312.00 312.00 156.00 1,716.00 E3,198.00 3259375 December 2008 to June 2010 DY 505 3521412 January 2005 to June 2010 Hostel no 3 Total Grand total I am concerned that even though government housing rates are subsidised there are officers who, still, cheat payment of rent.
This is a serious act which cannot be ignored because government has been deprived of its meager revenue.

Page 139 In his reply the Controlling Officer stated that a casualty has been prepared to recover the rental owed, beginning in January 2012.

(c) Underpayment of Rent Further, I noted with concern that when rental deductions were effected from 1st July 2011 to 30th November 2011, in respect of the same officers quoted above deductions were not as per the rates of the categories of the houses occupied.
The under payment is listed below:- Employment no 4736255 Room no Months stayed Hostel no 1 Jul – Dec 2010 Jan – Nov 2011 3259375 DY 505 Jul – Dec 2010 Jan – Nov 2011 Understated Amount (E) 6 months X 12 11 months X12 Total 6 months X 26 11 months X 26 Total 3611379 Hostel no 3 1 month X 13 Dec 2009 Jan 2010 – Dec 2010 12 months X 13 11 months X 13 Jan 2011 – Nov 2011 Total Grand Total Total (E) 72.00 132.00 E204.00 156.00 286.00 E442.00 13.00 156.00 143.00 312.00 E958.00 The Controlling Officer has since resolved to recover the rent owing and a casualty has been prepared to commence deductions with effect from January 2012.
(d) Occupation of the Institution’s House by a Non Civil Servant During the physical verification of the Houses, at VOCTIM, it was discovered that House No.

DY390 which was allocated to a lecturer, employment number 4309806 was occupied by Mr Kenneth Ndzinisa, who is not a civil servant but working for Swaziland Brewers.

The lecturer is no longer staying in the house and taking advantage of the rates of government rentals, he continued to pay the rental of E52.00 per month.
He left Mr Ndzinisa in the house whom he alleged to be his relative.

It was gathered that the house was passed on to the lecturer’s relative without the consent of the Principal at VOCTIM, but the Principal is aware of the arrangement.

Page 140 The non-civil servant has enjoyed the comfort of a government house at rent and water utility free ,at the expense of the taxpayers while enjoying fringe benefits of the company (Swaziland Brewers) he is working for.
Total water bills paid by government in 2009, for the whole Institution including the house occupied by a non civil servant, amounted to E750,620.55 for the period 1st January 2009 to 31st December 2009.

It is evident that the lecturer was no longer in need of the house and it was supposed to be taken back to the College, for reallocation to deserving officers.
Occupation of a government quarter by persons who are non civil servants is contrary to General Orders governing the allocation of government quarters.

Further General Order .A 702(1) does not permit officers to let or sub-let either in whole or part of government quarters, which have been allocated to them.
I am concerned about lack of supervision by the Principal of the College as well as the Controlling Officer who did not take any action to discipline the lecturer involved, after their attention was drawn that the state property, which is a fringe benefit for the College employees, was being misused.

The Controlling Officer, in his response, informed me that an eviction letter has been written to the non-civil servant who is occupying the Institution’s house.
However, at the time of writing this report I am not aware of the outcome, whether the non-civil servant has vacated the house.

(e) Bulk Metre – Water Bills I also pointed out to the Controlling Officer that water bills of the Institution were too high because the water metre for the College and lecturers’ residences were not separated.

As a result the lecturers were not paying water bills consumed by them but only pay electricity bills.
Government is paying the water bills for the College as well as consumption by the lecturers and other staff members.

The high escalation cost of water bills is caused by persistent running water taps which were not repaired and attended to by the College Management.

Water bills paid by government were E775, 654.00 in 2008 E750, 620.55 in 2009 and E753, 432.70 for 2010.
The following tables show water bills paid in 2008, 2009 and 2010 Year 2008 Amount paid (E) Year 2009 Amount Paid Year 2010 (E) Amount paid (E) Page 141 January February March April May June July August September October November December Grand total January 61,008.78 78,510.45 February 66,220.83 March 70,000.59 April 80,028.65 May June 78,193.74 July 72,751.42 1,426.30 August 0.00 September 69,837.60 October 99,516.35 November 98,159.29 December January 107,665.44 74,540.75 February 67,011.39 March 90,890.75 April 0.00 May June July 97,627.17 83,574.18 78,671.33 August 103,187.43 September 46,767.81 October 342.15 November 342.15 December 8,143.62 102,651.93 413,231.14 66,755.58 108,051.91 0.00 12,843.02 7,193.02 8,822.62 8,439.22 9,036.02 8,264.62 E775,654.00 E750,620.55 E753.432.70 In my report, I recommended that individual metres should be installed in the houses occupied by the staff members so that they pay water bills as per their consumption and be responsible for unattended leakages, observed.
Further, it is an unnecessary burden to the taxpayers, to have the water consumed by employees but paid by government.

The Controlling Officer has not taken, seriously, my recommendations since the water metres are not separated even to date.

I am concerned by the laxity, care free attitude, demonstrated by the Controlling Officer even during the times of liquidity crisis in the country.
In essence it is these kind of inherited expenses, by government, that have contributed to the crisis currently suffered by government.

In his response, the Controlling Officer, stated that the Ministry has submitted a project for funding by government in financial year 2012/2013 and explained the urgency the project desires.
(f) Outstanding College Fees On another note, it was brought to the attention of the Controlling Officer that, students graduated and left the College without having fully settled the College fees.

College fees for resident students at the campus were E13, 760.00 per year and non-resident students were E10, 130.00 per year.
An amount of E240, 745.00, for the 2009 year of study, was still outstanding from the following students:- Page 142 Year of study Student Name Resident / Non resident Faculty Department College Fees (E) Paid Fees (E) 2008/2009 Nkambule Mabonga Resident Resident 2008/2009 Sibiya Siphiwo Resident 2008/2009 Mabila Zakithi C. Resident 2008/2009 Dlamini Nkosinathi Automotive Automotive Commercial Woodwork 13,760.00 13,760.00 13,760.00 13,760.00 5,555.00 5,540.00 7,630.00 6,260.00 Outstandi ng fees (E) 8,205.00 8,220.00 6,130.00 7,500.00 S. 2008/2009 Dlamini Nhlanhla N. 2008/2009 Mabuza Khethwa B. Resident Resident 2008/2009 Dube Bongani 2008/2009 Broadwell Ntokozo 2008/2009 Takitsi Mamba 2008/2009 Thulani H. Zwane Resident Resident Non resident Non resident Woodwork Mechanical 13,760.00 13,760.00 3,335.00 10,760.00 10,425.00 3,000.00 Mechanical Electrical Automotive 13,760.00 13,760.00 10,130.00 11,260.00 8,220.00 6,040.00 2,500.00 5,540.00 4,090.00 Automotive 10,130.00 5,155.00 4,975.00 2008/2009 Thokozane Mkhulisi Non Automotive 10,130.00 3,630.00 6,500.00 2008/2009 Mfundo Dlamini 2008/2009 Mfanelo M. Mthethwa resident Non resident Non resident Automotive 10,130.00 5,730.00 4,400.00 Automotive 10,130.00 4,810.00 5,320.00 2008/2009 Nkosinathi Nhlabatsi Non Automotive 10,130.00 7,630.00 2,500.00 2008/2009 Sabelo Dlamini 2008/2009 John Gama 2008/2009 Themba Matsebula resident Non resident Non resident Non resident Automotive 10,130.00 6,220.00 3,910.00 Automotive 10,130.00 5,130.00 5,000.00 Automotive 10,130.00 7,630.00 2,500.00 2008/2009 Mzwakhile N. Zwane Non Automotive 10,130.00 6,220.00 3,910.00 2008/2009 Thokozani Ndzabandzaba 2008/2009 Makhosonkhe Matsebula 2008/2009 Bhekinkosi J. Dube 2008/2009 Sibusiso Anderson 2008/2009 Sibusiso E. Mdluli 2008/2009 Wandile Gamedze resident Non resident Non resident Non resident Non resident Non resident Non resident Automotive 10,130.00 8,430.00 1,700.00 Automotive 10,130.00 8,130.00 2,000.00 Automotive 10,130.00 6,220.00 3,910.00 Automotive 10,130.00 6,200.00 3,910.00
 Automotive 10,130.00 5,540.00 4,590.00 Automotive 10,130.00 5,555.00 4,575.00 2008/2009 Mpendulo Matsebula Non Automotive 10,130.00 7.720.00 2,410.00 2008/2009 Phindile Vilakati resident Non resident Automotive 10,130.00 9,130.00 1,000.00 2008/2009 Lamile N. Shongwe Non Commercial 10,130.00 7,130.00 3,000.00 resident 2008/2009 Lomathemba Magagula Non Commercial 10,130.00 7,130.00 3,000.00 resident 2008/2009 Mumcy C. Matsebula Non Commercial 10,130.00 7,630.00 2,500.00 2008/2009 Mbuso Simelane 2008/2009 Zama Dlamini 2008/2009 Gcebizwe B. resident Non resident Non resident Non Commercial 10,130.00 7,130.00 3,000.00 Commercial 10,130.00 7,630.00 2,500.00 Commercial 10,130.00 7,630.00 2,500.00 Page 143 Simelane 2008/2009 Nokukhanya Mkhonta resident Non resident Commercial 10,130.00 7,130.00 3,000.00 2008/2009 Tengetile Mkhaliphi Non Commercial 10,130.00 7,130.00 3,000.00 2008/2009 Nompumelelo Simelane resident Non resident Commercial 10,130.00 7,130.00 3,000.00 2008/2009 Nonhlanhla Kunene Non Commercial 10,130.00 7,130.00 3,000.00 2008/2009 Sipho T. Dlamini 2008/2009 Linda Magagula resident Non resident Non resident Commercial 10,130.00 7,630.00 2,500.00 Woodwork 10,130.00 7,630.00 2,500.00 2008/2009 Sibonelo Makhanya Non Woodwork 10,130.00 7,130.00 3,000.00 2008/2009 Mcebo Makhanya 2008/2009 Xoli S. Mthunzi 2008/2009 Joel S. Hlatshwayo 2008/2009 Makhosonkhe Ginindza 2008/2009 Zwelibanzi Matsebula 2008/2009 Mongi Dlamini 2008/2009 Michah Mkhaliphi 2008/2009 Mandla Sithole 2008/2009 Makhosonke Ginindza 2008/2009 Bongani Tsabedze resident Non resident Non resident Non resident Non resident Non resident Non resident Non resident Non resident Non resident Non resident Woodwork 10,130.00 5,735.00 4,395.00 Woodwork 10,130.00 6,310.00 3,820.00 Woodwork 10,130.00 6,335.00 3,795.00 Building 10,130.00 7,130.00 3,000.00 Building 10,130.00 6,130.00 4,000.00 Building 10,130.00 5,130.00 5,000.00 Building 10,130.00 7,130.00 3,000.00 Building 10,130.00 7,130.00 3,000.00 Building
 10,130.00 7,130.00 3,000.00 Mechanical 10,130.00 7,130.00 3,000.00 2008/2009 Noncedo Nkambule Non Mechanical 10,130.00 7,130.00 3,000.00 2008/2009 Nhlanhla Dlamini 2008/2009 Mfundo Dlamini 2008/2009 Sizwe Khumalo 2008/2009 Maxwell Shabangu 2008/2009 Mthunzi Metfula 2008/2009 Linda B. Mkhonta resident Non resident Non resident Non resident Non resident Non resident Non resident Mechanical 10,130.00 7,130.00 3,000.00 Mechanical 10,130.00 4,890.00 5,240.00 Mechanical 10,130.00 3,630.00 6,500.00 Mechanical 10,130.00 3,630.00 6,500.00 Mechanical 10,130.00 5,975.00 4,155.00 Mechanical 10,130.00 7,130.00 3,000.00 2008/2009 Nomcebo P. Vilakati Non Mechanical 10,130.00 1,960.00 8,170.00 2008/2009 Manuel Magongo 2008/2009 Hlatshwayo Majaheni resident Non resident Non resident Mechanical 10,130.00 4,135.00 5,995.00 Mechanical 10,130.00 6,155.00 3,975.00 Total 626,710.0 0 385,905.0 0 E240,765.0 0 Page 144 Although the Controlling Officer is aware that government is in dire need of the revenue to finance its activities he is care free and not bothered to trace the students and demand the outstanding monies due to government.
The Ministry has since started tracing the students who have outstanding fees and has also engaged the Ministry’s Legal Advisor on a way forward.

(f) Non Operational Library Services A library at VOCTIM was built in 2003 but has not been in operation for 7 years.

During the audit inspection, books required for the library had not been bought.

However, the Library Unit has eight permanent working staff comprising of five Cleaners, one Typist, Assistant Librarian and one Librarian.
The employees, under this Unit, received monthly salaries for no services rendered to government.

As a result government suffered a loss of E507, 707.95 for salaries paid between 7th April 2008 to 14th December 2009.
The details are:- Assumption of duty 07/04/2008 Employment no 3185618 Post Held Senior Librarian 01/06/2008 3213634 Assistant Librarian 19/05/08 7952991 Cleaner Page 145 Period/ Monthly Salary (E) Jan 2010 13,337.58 Aug 2009 – Dec 2009 13,337.58 Aug 2008 –Jul 2009 11,940.67 Apr 2008 – Jul 2008 10,806.00 Total Jan 2010 8,821.92 Aug 2009 –Dec 2009 8,821.92 Apr 2009 – Jul 2009 8,442.00 Aug 2008 – Mar 2009 8,196.08 Jun 2008 – Jul 2008 7,317.92 Total Jan 2010 1,620.42 Aug 2009 – Dec 2009 No of months 1 Total Paid (E) 13,337.58 5 12 4 22 1 5 4 8 2 66,687.90 143,288.04 43,224.00 E266,537.52 8,821.92 44,109.60 33,768.00 65,568.64 14,635.84 20 E166,904.00 1 5 1,620.42 8,102.10 19/05/08 2628334 Cleaner 14/12/09 9139220 Cleaner 14/12/09 40059314 Cleaner 14/12/09 40134284 Cleaner 14/12/09 39867818 Typist 1,620.42 Sept 2008 – Jul 2009 1,446.83 Jun 2008 – Aug 2008 1,309.33 May 2008 253.38 Total Jan 2010 1,620.42 Aug 2009 – Dec 2009 1,620.42 Sept 2008 – Jul 2009 1,446.83 Jun 2008 – Aug 2008 1,309.33 May 2008 253.38 Total 11 3 15,915.13 3,927.99 13 days 253.38 E29,819.02 20 months 13 days 1 5 11 3 1,620.42 8,102.10 15,915.13 3,927.99 13 days 253.38 E29,819.02 20 months 13 days Jan 2010 1,805.37 Dec 2009 1,203.58 Total Jan 2010 1,805.37 Dec 2009 1,203.58 Total Jan 2010 1,805.37 Dec 2009 1,203.58 Total Jan 2010 3,360.84 Dec 2009 Total Grand Total 1 1 2 1 1 2 1 1 2 1 1,805.37 1,203.58 E3,008.95 1,805.37 1,203.58 E3,008.95 1,805.37 1,203.58 E3,008.95 3,360.84 2,240.70 E5,601.54 E507,707.95 1 2 90 months 26 days The Controlling Officer did not state how he intends to recover the loss.
Page 146 The Controlling Officer concurred with my observation stating that books were not purchased due to non allocation of funds.

However a budget has again been submitted and hopefully some books will be purchased before the end of the financial year.

The Controlling Officer did not mention how the issue of the Library staff would be handled, pending the purchase of books.
26.6 Under Expenditure on Project E34399 – Water Supply to Schools V Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E1100, 000.00 was approved and released for sitting and drilling of boreholes and installation of pumps in 20 schools and purchase of 110 water tanks in selected schools throughout the country.

Actual expenditure amounted to E322, 000.00 resulting in an under expenditure of (E1, 100,000.00-E322, 000.00) E778, 000.00 70% savings.
The Ministry is expected to explain the status of the project and the reasons for the high savings In his reply, the Controlling Officer pointed out that the project was completed by 31st March 2011 but the payment of E660 000.00 to date, has not been made to the Contractor due to the prevailing cash flow challenges.

However evidence of the completed projects was not furnished to my office.
26.7 Under Expenditure on Project E34499 – Schools Toilet VI Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized for purposes intended and within the timeframe the development and economic growth of a country is retarded.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E3 000.000.00 was approved and released for the construction of pit latrines in selected schools throughout the country.

Actual expenditure amounted to E2 543, 244.64 resulting in an under expenditure of Page 147 (E3 000, 000.00-E2 543, 244.64) 15.2%.

The Ministry is expected to update my office on the implementation status of the project and justify the savings.

In response the Controlling Officer stated that the project was stalled and remains incomplete due to the severe cash flow crisis.
However, the Ministry purchased and distributed building materials to the 46 targeted schools but regarding cement blocks only 20 schools received the cement blocks, because government vehicles were suspended due to the cash flow challenges and thus the under expenditure.

26.8 Under Expenditure on Project E37599 – Teachers’ Houses VII Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized retards the development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

An amount of E2 751, 000.00 was approved as budget and released for the construction of B2D Teachers’ houses in selected Secondary schools throughout the country.

The whole released amount of E2 751, 000.00 was not utilized thus resulting in a 100% savings non implementation of the project.

The Ministry is expected to give reason for not implementing the project.
In his reply the Controlling Officer stated that this project was completed and the houses are in use and the total expenditure at the end of March 2011 was E2 600 058.58.

However lists of completed houses were not furnished to my office for verification.

26.9 Under Expenditure on Project E37899 – Construction of Secondary School Libraries Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized retards the development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

Page 148 An amount of E1 400.000.00 was approved as budget and released for the construction of schools libraries in selected secondary schools around the country.

The whole released amount of E1 400,000.00 was not utilized thus resulting in the savings of 100%.

The Ministry is expected to explain the non-implementation of the project.
The reply, by the Controlling Officer, stated that there was no under expenditure in this project.

The whole sum, E1 400 000.00 was utilized to construct one library at Siphofaneni High School, which is now in use.

26.10 Under Expenditure on Project E38299 – Academic Precinct Development at UNISWA Kwaluseni Campus Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized retards the implementation of the project.
I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

An amount of E14, 100.000.00 was approved and released for the academic precinct development at UNISWA; construction of a sports emporium at UNISWA Kwaluseni Campus (E690 000.00).
Construction of a National Crop Production Centre at UNISWA Luyengo Campus (E720 000.00) Actual expenditure amounted to E9 622 000.00 resulting in an under expenditure of (E14,100,000.00–E9 622 000.00) E4 478,000.00 31.7%.

Savings.

The Ministry is expected to explain the status of the project and the reasons for the savings.

The Controlling Officer agreed that the project under spent.
The reason given was that government did not release the second request for funds amounting to E9 622 000.00 and as a result the project remains incorrect.

However, he corrected me that the total expenditure as at 31st March 2011 was E4 478 000.00 and not E9 622 000.00.

While we note the disparity it is worth mentioning that my amounts were obtained through the government accounting system.
26.11 Under Expenditure on Project E38399 – Rehabilitation of Infrastructure and Equipment at UNISWA Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized as intended retards the development and economic growth of a Page 149 country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E5,000.000.00 was approved and released for the Rehabilitation of library, laboratories and classrooms at the three (3) UNISWA Campuses.

Actual expenditure amounted to E1 779,000.00 resulting in an under expenditure of (E5,000,000.00–E1 779,000.00) E3,221,000.00 (64.4%) savings.

The Ministry is expected to explain the status of the project and the reasons for the high savings.

The Controlling Officer conceded that there was under expenditure under this project.
However, he corrected the amount of savings stated in my report to be E1 779 000.00 and the actual expenditure to be E3 221 000.00.

The reason for the under expenditure was that government did not release the E1 779 000.00 that was requested to complete the project due to the on going cash flow crisis.
26.12 Under Expenditure on Project E39099 – Construction of Technical Subjects Workshop Under expenditures are as serious as over expenditures in that if funds are tied up and unutilized retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E9, 000.000.00 was approved and released for the Construction of technical subjects workshops in ten(10) Secondary schools around the country.

The released amount of E9, 000,000.00 was not utilized for the implementation of the project thus resulting in a 100% savings.

The Ministry is expected to clarify and justify the non-implementation of the project.
In his reply the Controlling Officer stated that the funds were utilized and the total expenditure as at the end of March 2011 was E8 726 425.00.

The project status was that 5 contracts have been awarded and site clearing has started but due to financial crisis only the 5 workshops will be constructed instead of the initial 7 that were envisaged.
Page 150 26.13 Under Expenditure on Project E39399 – Construction of Schools Science Laboratories Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E4, 932,000.00 was approved and released for the Construction of Science laboratories in selected secondary schools around the country.

The whole released amount of E4 932,000.00 was not utilized resulting in the non- implementation of the project.

Thus the funds were idle with no benefit to the country.

The Ministry is expected to give reasons for failure to implement the project.

In his reply the Controlling Officer disagreed with my observation.
He stated that the money has been utilized and science laboratories were constructed in 8 secondary schools and are all in use.

The total expenditure as at the end of March 2011 amounted to E4 507 776.14.

26.14 Under Expenditure on Project E39499 – Secondary School Classroom VI Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized retards the development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

An amount of E9, 713,000.00 was approved and released for the Construction of Secondary schools classrooms in selected schools around the country.

The released amount of E9, 713,000.00 was not utilized thus resulting in a 100% savings.

The Ministry is expected to explain and give reasons for failure to implement the project.
The Controlling Officer disagreed with my observation and stated that according to his records an amount of E9 713 000.00 was requested but E9 Page 151 180 702.87 was released and was utilized to construct classrooms in 39 secondary schools and are still in use.

However, no evidence was provided for further verification.
26.15 Under Expenditure on Project E39799 – Rehabilitation of Storm Damaged Schools Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

An amount of E2, 000.000.00 was approved and released for the Rehabilitation of storm damaged schools throughout the country.
Actual expenditure amounted to E478, 979.37 thus resulting in an under expenditure of (E2, 000,000.00-E478, 979.37) E1 521, 020.63 (76%) savings.

The Ministry is expected to update this office with the status of the project and further explain this high savings.

In his reply the Controlling Officer stated that implementation of the project was transferred to micro project a sum of E1 521 020.63 was spent in the 2011/12 financial year leaving a balance of E339 261.99 as at 1st December 2011.
The explanation given was that funds amounting to E1 480 000.00 which were released on 18 January 2011 was not honoured by government due to the on going challenges.

26.16 Under Expenditure on Project E40499 – Separation of Electricity and Water Metres at Boarding Schools Under expenditures are as serious as over expenditures in that if funds are locked up and unutilized retards the development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

An amount of E2, 500.000.00 was approved and released for the Separation of utility metres in pubic funded boarding schools around the country.

The released amount of E2, 500,000.00 was not utilized thus resulting in a 100% savings.

Page 152 The Ministry is expected to explain and give reasons for the non-implementation of the project.
The Controlling Officer concurred with my observation that an amount of E2 500 000.00 was approved and released for this project.

An amount of E2 352 962.00 was spent in the separation of metres at 4 boarding schools.

26.17 Under Expenditure on Project E40999 – Construction of Resource Centre for the Visually Impaired Under expenditures are as serious as over expenditures in that if funds are locked up and unutilized retards the development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

An amount of E3,200.000.00 was approved and released for the Construction of resource centres at Mbasheni Primary schools.

The released amount of E3, 200,000.00 was not utilized thus resulting in a 100% savings.

The Ministry is expected to explain and give reasons for the non-implementation of the project.
The Controlling Officer concurred with the amount released, E3 260 000.00 and informed me that the total expenditure at the end of March 2011 was E3 050 694.38 a sum of E2 809 467.80 was used for the construction of the Mbasheni Resource Centre and E241 226.58 was used for the designs of the Eqinisweni Resource Centre.
26.18 Under Expenditure on Project E41999 – Construction of Primary Schools Classrooms Under expenditures are as serious as over expenditures in that if funds are locked up and unutilized retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E12, 120.000.00 was approved and released for the Construction of Primary School classrooms in selected schools around the country.

Actual expenditure amounted to E3254,814.00 resulting in an under expenditure of Page 153 (E12,120,000.00-E3,254,814) E8,865,186.00 (73.1%) Savings.

The Ministry is expected to explain the status of the project and further justify the high savings.
The Controlling Officer, in his reply, stated that an amount of E12 120 000.00 was approved and released and an amount of E12,094,087.61 was used to construct classrooms in 63 primary schools around the country.

The project was completed and are in full use.

List of schools that benefited from the project was not provided for verification.
26.19 Under Expenditure on Project E42099 – Construction of Primary Schools Teachers’ Houses Under expenditures are as serious as over expenditures in that if funds are locked up and unutilized retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.
An amount of E14, 940.000.00 was approved and released for the Construction of Primary schools Teachers’ houses in selected schools around the country.

The released amount of E3 E14, 940.000.00 was not utilized thus resulting in a 100% savings.

The Ministry is expected to explain and give reasons for the non-implementation of the project.

The Controlling Officer denied the under expenditure.
The information given was that an amount of E14 940 000.00 was released and utilized to construct 53 teachers houses, which are now in use, around the country.

The total expenditure amounted to E14 925 199.20.

26.20 Under Expenditure on Project E42199 – Construction of Kitchens in Primary Schools Under expenditures are as serious as over expenditures in that if funds are locked up and unutilized within the set timeframe.

The implementation of the project becomes expensive at the end.
Therefore it retards the development and economic growth of a country.

I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

Page 154 An amount of E8,938.000.00 was approved and released for the Construction of schools kitchen in selected primary schools around the country.

The released amount of E8, 938,000.00 was not utilized thus resulting in a 100% savings.
The Ministry is expected to explain and give reasons for the non-implementation of the project.

The Controlling Officer denied that there was under expenditure in this project.

He submitted that total expenditure at year end, 31st March 2011 was E7 888 236.17 and kitchens were constructed in 34 schools and are now in full use.

Also, savings amounting to E1 000 000.00 were re-allocated to the construction of free primary school classrooms.
The list of the schools that benefited was not provided for verification.

26.21 Under Expenditure on Project E42299 – Construction of Ramps Pathways and Modifications of Infrastructure such as Toilets and Classrooms.

Under expenditures are as serious as over expenditures in that if funds are locked up and unutilized retards the development and economic growth of a country.
I therefore consider under expenditures of 10% and above on capital projects in a year as not conducive to the development of a country.

An amount of E3,000.000.00 was approved and released for the Construction of ramps, pathways and modification of infrastructure such as toilets and classrooms.

The whole released amount of E3, 000,000.00 was not utilized thus resulting in a 100% savings.

The Ministry is expected to explain and give reasons for the non-implementation of the project.
The Controlling Officer concurred with my observation that this project under spent.

The information, given, was that the funds, E3 000 000.00, were released on 31st January 2011 subsequently permission was sought from the Ministry of Economic Planning to transfer the project to Micro Project Coordination Unit (MPCU) for implementation.
The permission was granted and the project was transferred but due to logistical challenges the project failed to Page 155 commence on time and eventually the funds were reallocated to Free Primary Education Projects due to budgetary shortfalls.

However, the Controlling Officer, duly, attached the request to utilize the money for the other projects but did not provide documentary evidence that the authority was given and the funds were re-allocated accordingly.
26.22 Over Expenditure on Project E39299 – Construction of Computer Laboratories in Schools Expenditures beyond appropriated funds, by Parliament and released warrant are illegal and distort the overall fiscal budget of a country.

This is supported by Financial and Accounting Instruction 0202(ii) in conjunction with Financial Accounting 0401.
Financial and Accounting Instruction 0202(ii) states that accounting officers should ensure that “no amount is spent in excess of the amounts specified in the Treasury Warrant and 0401 states that “officers who incur expenditure in excess of the authorized amounts will be held personally responsible and may be liable to surcharge in accordance with section 20 of the Finance and Audit Act”.

An amount of E2, 200.000.00 was approved and released for the Construction of computer laboratories in schools.
Actual expenditure amounted to E71, 694,000.00 resulting in an over expenditure of E69, 494,000.00 (E3158.8%) (E2, 200,000-E71694, 000) The Controlling Officer denied the over expenditure and stated that there were savings of E300 000.00 that were reallocated to free primary education project.

The total expenditure as at the end of March 2011 was E1 707 007.37 and 3 laboratories were constructed at Ekuphakameni, Mphundle and Madzanga.
Since each laboratory was estimated at E650 000.00, the savings of E300 000.00 were reallocated to FPE, as stated above.

26.23 Unauthorised Expenditure on Project E41299 – Purchase and Installation of Mobile Classrooms Expenditures not appropriated and approved, by Parliament, are not authorized.
This is endorsed by Financial Accounting Instruction 0103 which states that after the enactment of the appropriation Bill a general warrant will be issued by the Ministry of Finance, followed by a treasury warrant authorizing Controlling Officers to spend Page 156 in accordance with the approved estimates.

An actual amount of E4, 557,088.00 was spent for the purchase and installation of mobile classrooms, but there were no funds approved or released for this project.
Therefore expenditure of E4, 557,088.00 was not authorized.

The Controlling Officer is expected to explain the authority that allowed him to spend public funds without the appropriation which is the authority to spend.

The response, by the Controlling Officer reflects that, indeed, there was no budget provision in the 2010/11 financial year and the funds utilized were carried over from the previous year 2009/10 without authority.
The reasons given were that in the previous year the funds were released late in January 2010 and by this time it was too late to request a carry over to the subsequent year 2010/11.

Moreover an agreement was signed in January 2010 and it was not possible for the contractor to finish the work in 2 months and therefore the project under spent in 2009/10 and the Ministry utilized the remainder in the subsequent year.
The Controlling Officer admitted the mistake of entering into agreement with the contractor by year end.

He also cited the pressure to provide class rooms for the free primary education programme to have been another factor to this situation.

However in my view, no matter what predicament the Controlling Officer might have come across he should have contacted the relevant authorities to address the issue appropriately in respective of the timing.
The explanation given is not adequate without having taken appropriate action.

26.24 Audit of Capital Project E39599 – Purchase of Equipment for Home Economics Laboratories II An audit inspection was carried out on Project E39599, for two financial years 2008/9 and 2009/10.

A report referenced E7.C.P.4 dated 6th July 2011 was issued to the Principal Secretary, Ministry of Education and Training.
A reminder, dated 26th September 2011, together with a copy of the inspection report, was also issued to the Principal Secretary, but there was no response to the concerns raised.

Page 157 The objective of the project was to purchase furniture and equipment for Home Economics Laboratories, in schools.
However, there were irregularities which were noted in the distribution of the equipment as follows:- (a) Financial Year 2008/9 An amount of E600 000.00 was spent for purchasing furniture and equipment for the schools.

However, equipment comprising, water resistant tables Defy electric stove and sewing machines, valued at E24 250.00, were found missing and not accounted for.
This anomaly was unveiled during the physical verification of the balances of stock, of items that were not distributed to the schools.

The table below reflects the missing items.

Item Order No.
Item Order No.

Quantit y Purchas ed (A) Quant ity Issued (B) 908737 25 19 Quantit y Varianc e (C) = (A) – (B) 6 909640 28 27 1 909029 135 126 9 Nina 788 Overlock ers Defy Electric Stoves Water Resistant tables Total Stock on Hand (D) 4 0 0 Missin g items( E) (C-D) 2 = Unit Price (F) Unaccounte d for Amount (G) = (E) X (F) E3,900.00 E7,800.00 1 9 E4,300.00 E4,300.00 E1,350.00 E12,150.00 E24,250.00 The reply, by the Controlling Officer stated that :- 1.
Nina Over Lockers One over locker was issued to Lulakeni REC through a directive from the then Minister for Education in year 2000.

The other over locker was issued to Lubombo Regional Inspector as a demo for training teachers 2.

Defy Electric Stoves The stove was given to the Lutsango Regiment delegation as per directive of the then Principal Secretary.

It was further redirected from Ekubongeni.

Page 158 3.
Page 158 3.

Water Resistant Tables The Ministry’s investigation revealed that all the tables were accounted for.

The reply is not convincing because when my office undertook the physical verification with the assistance of the Ministry the whereabouts of the items were unknown.

Further, regarding the over lockers and electric stoves it is not clear why these did not appear in the record distribution list which reflected issuance of the items.
This demonstrates that there is absolute lack of accountability by this Ministry.

(b) Financial Year 2009/10 An amount of E2,399,751.85 was spent to purchase equipment and furniture for schools.

During the physical verification of stocks, on hand, equipment and furniture amounting to E186 395.30 were found missing and not accounted for.
The missing items consisted of sewing machines, microwaves, electric fridges, ironing boards, household blenders, electric steam irons, plastic chairs with steel frames, electric urns, and water resistant tables.

The details of the missing items is shown below:- Item Order No.
Quantity Purchased (A) Quantity Issued (B) 731854 118 731803 731856 82 44 733657 38 733662 100 733659 733659 733669 733663 82 82 59 700 Sewing machines Microwaves Ninette overlockers Double door Fridges Brabantia ironing boards Blender Steam irons Urns Plastic chairs with steel frames 68 77 41 28 92 75 73 45 420 Quantity Variance (C) = (A) – (B) 50 5 3 10 8 7 9 14 280 Stock on Hand (D) 33 2 0 6 3 4 0 0 42 Missing items (E) (C-D) 17 = Unit Price (F) 4,250.00 Unaccounted for Amount (G) = (E) X (F) 72,250.00 3 3 4 5 3 9 14 238 1,285.00 4,500.00 3,855.00 13,500.00 4,195.00 16,780.00 450.00 2,250.00 619.00 199.00 875.00 134.00 1,857.00 1,791.00 12,250.00 31,892.00 Page 159 Water resistant tables Total 733656 180 144 36 18 18 1,665.00 29,970.00 E186,395.00 Sewing Machines In response the Controlling Officer stated that 37 sewing machines were in store and not 33, 8 singer machines were allocated to Swazi National High in compensation for a fire in April 2009.
Only 4 sewing machines are unaccounted for, which are valued at E17 000.00.

Microwaves The response stated that only one microwave valued at E1 285.00 is unaccounted for.

Ninette Over Lockers One over locker was given to Swazi National High in compensation for a fire in April 2009 and only one over locker is unaccounted for valued at E3 900.00.

Double Door Fridges The Controlling Officer concurred with the finding that 4 fridges valued at E16 780.00 were not accounted for.
Barbantia Growing Boards The reply revealed that 90 ironing boards were issued to schools, 6 were in store and 4 valued at E1 800.00 accounted for and not 5.

Blender The reply concurred with my finding that 3 blenders valued at 1 857.00 were unaccounted for.

Steam Irons The reply stated that 75 steam irons were issued to schools, 3 were in store and 4 valued at E796.00 are unaccounted for.

Urns The reply concurred with my finding that 14 urns were not accounted for.
Page 160 Plastic Chairs The reply revealed that 630 tables were issued to schools and 70 were diverted to two schools due to emergencies but will be reimbursed/have been reimbursed.

However, the Controlling Officer is not certain about the issue of re- imbursement of the plastic chairs.

Water Resistant Tables The Controlling Officer stated that all the tables were distributed to schools and accounted for.
It is worth mentioning that the results of my audit emanated from records provided by the Ministry and the disparity between my details and the Controlling Officer’s submission are, mainly, due to lack of accountability.

Further it is apparent that the records are not updated promptly on occurrence of events.

I am concerned about the mal administration of the above project, which rendered these attractive items untraceable.
In view of the above scenario, the items were misdirected for personal use and therefore the amount of money involved is a loss to government.

26.25 Audit Inspection – Maloyi Primary School An audit inspection was carried out at Maloyi primary School.

The attention of the Principal Secretary, Ministry of Education was drawn to the following irregularities which have not been addressed.
In my inspection report ref.S.17A/Vol.V/49, dated 31 May2010, I pointed out the following irregularities: (a) Unsupported Expenditure to Individuals Payments amounting to E114, 740.25 were made from the Maloyi Primary School account to certain individuals, including the Head Teacher and without supporting documents as a result the services and goods paid for were not known.

This made it impossible to ascertain if the school funds were expended and used efficiently, to finance the school’s activities.
(b) Unaccounted for Variance The school drew cheques with amounts higher than the purchase prices of the items, that is the amount shown in the payment voucher or receipts differed from Page 161 the cheque amount.

A variance of E9, 615.15 was noted which was unaccounted for because no documentary proof was provided to justify the variance.

The following analysis reflects a summary of the anomaly or variance that unfolded during the year under review.

Date Cheque No.
Date Cheque No.

Payee Amount E Total 07.07.09 12.09.09 07.05.09 Total 2723 2654 2772 Johannes B Shongwe De Man Investment Johannes B Shongwe 3000.00 9,474.00 2,000.00 Supporting Documents E 1,366.00 1.820.00 1.672.85 Excess Amount E 1,634.00 7.654.00 327.15 E9.615.15 Further, I informed the Controlling Officer that at times the invoice/ supporting documents exceeded the amount reflected in the cheque issued.

As a result an amount of E2, 477.49 was top up monies whose sources are not known.
Example of such is depicted below: Date Cheque No.

Payee Amount E 25.07.09 11.10.09 27.02.09 Total 2638 2663 2590 Johannes B Shongwe Bonsile Sibandze Johannes B Shongwe 820.00 4,190.00 2,500.00 Total Supporting Documents E 1.400.00 4,823.20 3,764.29 Unaccounted For Top up E 580.00 633.20 1,264.29 E2,477.49 It is obvious that the School funds were mismanaged by the School Head Teacher, by deliberately overdrawing monies in excess of the expenditure incurred, in respect of the School activities.
This is an indication that the School Head keeps a lot of cash which is untraceable and unaccounted for.

This practice did not consider that the objective of supporting documents is to enhance accountability and transparency in the use of funds.

However of greater concern was that the legitimacy of the payments made, were not guaranteed.
(c) Missing Cheques The Ministry of Education Schools Accounting Regulation, regarding signing of school cheques, is that a cheque should be signed by two authorized signatories.

The two signatories include the Head teacher who is a secretary to the school committee and the chairperson or the vice chairperson of the school committee.

However the Head teacher wrote and paid out cheques from the school account, which amounted toE37, 521.52, without the knowledge of the other signatories Vice or Chairperson.
At the time of the audit cheques drawn amounting to E17, 121.52 were still missing yet they had been issued illegally and had been honoured by the bank.

That is, they were not availed for audit purposes.

Page 162 The following analysis reflects a summary of the missing cheques Cheque no.
2721 2722 2730 2733 2734 2735 2736 2742 2747 2756 2758 2781 Total Amount E 5,651.52 600.00 1,500.00 1,000.00 1,500.00 650.00 2,000.00 1,500.00 400.00 220.00 600.00 1,500.00 E17,121.52 Out of the cheques amounting to E37, 521.52 withdrawn from the bank, the returned cheques amounting to E20, 400.00 were identified by the Chairperson to have been forged by the Head Teacher, particularly his signature.
Also noted was that most of the cheques were drawn infavour of the School Head Teacher, Mr. Johannes B Shongwe.

The following is an illustration of the cheques paid from the school fund with the forged Signature of the chairperson.

Date 07.05.09 07.07.09 13.05.09 11.05.09 13.05.09 13.11.09 29.06.09 27.02.09 17.07.09 Total Cheque no.
2772 2723 2771 2754 2773 2728 2701 2590 2678 Payee Johannes B Shongwe Johannes B Shongwe Joseph Langwenya Johannes B Shongwe Vusumuzi P Dladla Johannes B Langwenya Sifiso Maduma Johannes B Shongwe Sithembiso Dlamini Amount E 2000.00 3000.00 1500.00 1500.00 1600.00 900.00 3600.00 2500.00 3800.00 E20 400.00 It is therefore convincing that the school funds were mismanaged and were not used for their intended purpose and as a result the school did not benefit anything.
(d) Missing Cheque stubs I also informed the controlling officer that in some of the school cheque books, the cheque stubs were removed from the cheque book, completely.

The cheque stubs that were removed were in respect of cheques 2747-2748 and 2753-2758.

Page 163 Again efforts to trace these cheque stubs and information contained in them was not successful.
I am concerned about the custodian of the school records, since the action indicates intentional concealment of information and is tantamount to fraud.

(e) Dishonored Cheques Schools accounting regulation 7.3 prohibits the school from writing cheques when there are insufficient funds in the school account.

The bank charges for this are penalizing and the integrity of the school suffers.

However, the school had a handful of dishonored cheques that amounted to E1580.00.
Below is an illustration of the dishonored cheques Cheque no 2776 2673 2679 Total Cheque date Payee Amount (E) 02.11.09 02.11.09 02.11.09 Lillian Nhleko Nqobile Mamba Tholakele Nxumalo 435.00 710.00 435.00 E1,580.00 In response the Controlling Officer submitted the chromology of events surrounding the concerns raised in the inspection report.

In summary the Ministry held a meeting with the Headteacher and he admitted the fraud and promised to secure a loan to repay the money.
Charges have been laid against the Headteacher and the Ministry has officially opened a fraud case with the Siteki Police Fraud Unit.

The Ministry has also instructed the Standard Bank not to honour any school cheques bearing the signature of the Head Teacher.

The Ministry will also dispatch its auditors to audit the 2010, 2011 years.

At the time of reporting I am not aware if the Head Teacher has repaid the money.
Page 164 HEAD: 34 MINISTRY OF FINANCE Objectives: To ensure that Government is prudently advised on all fiscal matters and that annual estimates and appropriation drafts are prepared and processed as required.

27.0 AUDIT INSPECTION – MINISTRY OF FINANCE An audit inspection report dated 15th April 2010 referenced F13.Vol.v/108 was issued to the Principal Secretary, Ministry of Finance.

However, the Controlling Officer did not satisfactory address the following issues.
(a) Salary Paid While Officer on Study Leave An amount of E11 404.26 was lost as a result of salary overpayment to an employee who was on study leave.

The officer, employee number 4771029 was granted study leave to pursue a Master’s in Business Administration (MBA) at the University of Stellenbosch, with effect from January 2008 to March 2009.
However, this officer, in the last 3 months of study, January, February and March 2009, continued to receive a full salary of E15 205.67 per month, yet government regulations set out clearly that employees, on study leave, should be paid 75% of the basic salary for the second 12 months of study leave.
The Salary payments were as follows: PERIOD AMOUNT (E) 75% SALARY(E) OF OVERPAYMENT (E) January 2009 February 2009 March 2009 TOTAL 15 205.67 15 205.67 15 205.67 E45 617.01 11 404.25 11 404.25 11 404.25 E34 212.75 3 801.42 3 801.42 3 801.42 E11 404.26 I noted with concern that to date, this amount has not been recovered despite that regulations dictate that immediate action should be taken to recover any overpaid amount.
The Controlling Officer concurred with the loss of E11 404.26 through over payment of salary whilst on study leave and E17 796.67 over payment for the month of December 2010.

The officer made a commitment to repay the Page 165 money in instalments of E500.00 per month and the first instalment was paid in November 2011 on GR 04167720.

(b) Overpayment of Salary The former Legal Advisor, employment No.
3571242 was granted authority to proceed on early retirement by the Ministry of Public Service, in its memo ER/29/2 dated 17th February 2010.

The officer served a reduced period of notice which started with effect from 1st to 28th February 2010.

The net salary of E20, 497.85 was not stopped on the last date of service, 28th February 2010 but continued to be paid to the officer’s personal account even though no service was delivered by him to the government.
The Controlling Officer stated that the Ministry has been promised by the officer that the debt of E20 497.85 would be cleared by the end of November 2011.

However at the time of reporting I am not aware if the payment has been made.

(c) CTA Charges A total of E23 527.81 and E11 921.32 for financial years 2009/10 and 2008/09 respectively, were charged to the Ministry’s recurrent budget, in respect of CTA charges for motor vehicles not belonging to the Ministry.
There was no evidence that justify the charges made to the Ministry.
The details of the expenditures are as follows:- 2009/2010 PERIOD EXPENDITURE CHARGE Fuel Fuel Fuel April 2009 April 2009 Maintenance May 2009 May 2009 Maintenance June 2009 June 2009 Maintenance June 2009 Fuel June 2009 Maintenance June 2009 Fuel June 2009 Maintenance June 2009 Fuel June 2009 Maintenance June 2009 Fuel June 2009 Maintenance June 2009 Fuel June 2009 Maintenance July 2009 July 2009 Maintenance Fuel VEHICLE REGISTRATION SG005IT SG005IT SG005IT SG005IT SG005IT SG005IT SG054CE SG054CE SG382CP SG382CP SG862CP SG862CP SG862CP SG862CP SG862CP SG862CP SG005PL SG005PL DESCRIPTION TOYOTA PICK-UP TOYOTA PICK-UP TOYOTA PICK-UP TOYOTA PICK-UP TOYOTA PICK-UP TOYOTA PICK-UP TOYOTA bus TOYOTA bus TOYOTA sedan TOYOTA sedan BMW Sedan BMW Sedan BMW Sedan BMW Sedan BMW Sedan BMW Sedan Open sedan Open sedan AMOUNT (E) 226.80 660.00 302.40 880.00 233.10 678.32 308.70 898.32 409.50 1,430.00 296.10 1,430.00 409.50 795.36 812.30 1,100.00 304.65 1,237.50 Page 166 Fuel Fuel Fuel Fuel July 2009 July 2009 Maintenance Oct 2009 Oct 2009 Maintenance Nov 2009 Nov 2009 Maintenance Nov 2009 Nov 2009 Maintenance Nov 2009 Nov 2009 Maintenance Dec 2009 Dec 2009 Maintenance Jan 2010 Jan 2010 TOTAL FOR THE YEAR SG012CE SG012CE SG005ED SG005ED SG003TI SG003TI SG005FE SG005FE SG075JU SG075JU SG003TI SG003TI SG014IT SG014IT Fuel Maintenance Fuel Fuel 2008/2009 PERIOD EXPENDITURE CHARGE Fuel Maintenance Fuel Maintenance Fuel Sept. 2008 Sept. 2008 Oct. 2008 Oct. 2008 March 2009 March 2009 Maintenance March 2009 Fuel March 2009 Maintenance March 2009 Fuel March 2009 Maintenance March 2009 Fuel March 2009 Maintenance March 2009 Fuel March 2009 Maintenance TOTAL FOR THE YEAR VEHICLE REGISTRATION SG069CP SG069CP SG014IT SG014IT SG014IT SG014IT SG014IT SG014IT SG014 SG014 SG014 SG014IT SG075JU SG075JU ISUZU Pick-up ISUZU Pick-up - - - - Nissan Pick-up Nissan Pick-up Mazda sedan Mazda sedan - - ISUZU Pick-up ISUZU Pick-up DESCRIPTION Toyota 40seater Toyota 40seater ISUZU Pick-up ISUZU Pick-up ISUZU Pick-up ISUZU Pick-up ISUZU Pick-up ISUZU Pick-up ISUZU flat truck ISUZU flat truck ISUZU flat truck ISUZU flat truck Mazda sedan Mazda sedan 270.80 799.98 346.40 112.00 421.60 1,705.00 346.80 935.00 292.40 1,182.50 408.00 1,650.00 414.80 1,219.98 E23,527.87 AMOUNT (E) 1,719.00 2,912.75 342.00 759.99 233.10 739.99 371.70 1,179.99 255.45 594.75 438.85 1,021.75 252.00 1,100.00 E11,921.32 During the years under review, my findings revealed that the Ministry did not reconcile its accounts and above that overrode budgetary controls by catering for expenses belonging to other Ministries without encountering the budget constraints.
Therefore, I am inclined to conclude that the Ministry over budgeted for its activities.

(d) Telephone Expenditure For Line 2404 5498 A total of E48, 545.91 was paid by the Ministry in respect of line 24045498, to Swaziland Posts and Telecommunications Corporation for 2009-2010.

Enquiries made revealed that the line was for supporting IT Systems, thus costs should have been borne by the Ministry of Information, Communication and Technology.

Page 167 The Payments were as follows:- VOUCHER NO.
020002 020034 030042 040040 050030 060030 070032 110045 TOTAL ACCOUNT NO.
0590142 0590142 0590142 0590142 0590142 0590142 0590142 0590142 DATE OF BILL March 2009 April 2009 May 2009 June 2009 July 2009 Aug. 2009 Sept.2009 January 2009 AMOUNT (E) 775.27 6 533.11 7 776.31 7 661.38 7 767.03 7 062.35 5 363.83 5 606.63 48,545.19 I was informed that it is difficult to recover this money from the Ministry of Information Communication and Technology (ICT) because at the time the expenditure was incurred and during the transaction period the expenses were to be borne by the Ministry of Finance.
She did not know how the loss would be handled under this situation since the loss, indeed, occurred.

At the time of reporting there was neither evidence that the line was disconnected nor a journal voucher that adjustment of the cost was duly effected.

(e) Re-imbursable-Expenditure An amount of E6 530.40 was paid by the Ministry of Finance for a meeting held on the 7th May 2008, at Esibayeni Lodge.

The meeting was for a discussion of FINCORP loan guarantee by the Parliamentary Finance Committee.
The expenses of the meeting were supposed to be catered for by the Ministry of Agriculture but without justification the payment was made by the Ministry of Finance.

I noted with concern that there was no correspondence from the Ministry of Agriculture requesting the Ministry to make an order on its behalf.
Instead, an officer in the Ministry of Finance, in a minute dated 8th May 2008 sought authority from the Controlling Officer, Ministry of Finance, to pay on behalf of the ministry of Agriculture because it had a bad credit history with Esibayeni Lodge and been blacklisted.

Thus, finally the payment was made by the Ministry of Finance.

However, at the time of writing this report, the Ministry of Finance had not been reimbursed its funds used for the meeting.
As a result the Ministry of Agriculture made unrealistic savings from its budget.

I am disturbed by the kind gesture by this Ministry since there was no documentary evidence from the Ministry of Agriculture soliciting payment protection from the Ministry of Finance and no follow-up was made for a refund.

Page 168 The Controlling Officer stated that the Ministry of Agriculture has re- imbursed the money through a journal voucher.

But there was no evidence that the money was re-imbursed.
(f) Exceeded Limit on Cellphone Bills A total of E660.53 was spent by the Ministry in excess of a monthly set limit by government for cell phone bills of a retired employee, employment number 3571242.

The exceeded limits occurred during the months of December 2008 and January 2009.

In compliance with Establishment Circular No.2 of 2005, the pensioner was supposed to refund government the money paid in excess of the limit.

The payments were as follows:- VOUCHER NO.


100074 120030 DETAILS DEC.2008 Cell phone bill-6063022 Jan 2009 cell phone bill 6063022 TOTAL OVERPAID EMPLOYMENT NO.
3571242 AMOUNT (E) 1 660.27 LIMIT (E) 1500.00 EXCESS (E) 160.27 3571242 2 000.26 1500.00 500.26 E660.53 I am concerned that even though the officer served the notice, the Controlling Officer did not take precautionary measures to recover all debts due to government before exit from the service, as per the Financial and Accounting instructions 0506.

The Controlling Officer stated that the amount owed would be paid at the end of the month, November 2011 or first week of December 2011.
At the time of writing this report there was no proof for such payment.

In view of the above scenario the monies due to government have not been recovered.

27.1 Audit Inspection - Allowable Deductions From Retirement and Death Benefits An audit inspection was carried out on the above matter and the memoranda referenced 4/Vol.vi/83 dated 14 February2011 and 4/Vol.vii/8, dated 31st August 2011 were issued to the Ministry of Finance.
The Ministry’s response was not, satisfactory since it did not rectify the issues raised.
Page 169 In the reports quoted above, I expressed my concern about funds due to government amounting to E1,248,248.85 that were lost through non-recovery of outstanding debts from employees, who exited the Civil Service on retirement, the debts were:- • Salary advances • Overpayment of salaries • Comprehensive insurance loans • Car loans • Short term study loans • Tax due to government etc The debts are for the period, January 2010 to December 2010 The anomaly arose in the event of the Retirement Act which was enacted in October 2005.
This Act was established by the Registrar of Insurance and Retirement Funds and it did not accommodate debts of this nature in its allowable deductions.

According to the Act allowable deductions are:- Housing loans or guarantees Debts suffered, by employer, due to unlawful activity of the member, provided there is a court judgement and written acknowledgement, by member, allowing the debt to be deducted from his benefits.
However, this act overruled government regulations which allowed all dues to government to be deducted from the employee’s terminal benefits.

As a result, it was not possible for government to recover any debts after the last day in the service, except for advances against gratuities for deceased employees.

Since the Registrar of Insurance and Retirement Funds (RIRF) reports to the Ministry of Finance, the Ministry is better placed to take corrective action and avoid unnecessary loss to the government.
Page 170 Following is the Comprehensive Report reflecting amount due by employees, (January 2010 to December 2010).

Employment No.

Ministry/ Department Debts due Government Amount due to Govt.
(E) Debt Recovered (E) Outstanding Balance (E) Last date of Service/ Stop Payment date 4304629 7240953 Justice and Constitutional Affairs Education and Training 5282405 Customs and Excise 39794231 Health 8254588 Agriculture 9053012 Police 5100655 Defence 8886266 Hazel Matsebula 7065488 Public Service Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Short term loan Car Loan advance Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Salary advance Overpayment of salary Advance against gratuity Overpayment of salary F.D.S due Overpayment of Salary F.D.S due Advance against gratuity Study-Long term Overpayment of salary Advance against gratuity Overpayment of salary 13 816.37 Nil 13 816.37 24.07.10 20 000.00 20 000.00 Nil 16 725.08 Nil 16 725.08 17.08.10 10 000.00 10 000.00 Nil 24 492.62 88 500.72 9 005.53 Nil Nil Nil 24 492.62 88 500.72 9 005.53 25.07.10 15 000.00 15 000.00 Nil 3 278.20 Nil 3 278.20 01.09.10 10 000.00 10 000.00 Nil 2 000.00 2 267.07 10 000.00 8 416.57 Nil Nil 2 000.00 19.10.10 2 267.07 Nil 8 416.57 02/01/10 803.37 7 072.29 803.37 Nil Nil 7 072.29 08/02/10 295.33 10 000.00 295.33 10 000.00 Nil Nil 23/12/09 6 339.28 2 702.39 Nil Nil 6 339.28 2 702.39 10 000.00 10 000.00 Nil 07/03/10 17 454.77 Nil 17 454.77 4302517 Economic Advance 10 000.00 10 000.00 Nil 23/11/09 Page 171 Planning & Development 9334951 Police 4588409 Defence 4049375 Health 4050784 Commerce, Industry and Trade 10048263 Defence 6493385 Police 4778088 Public Works and Transport 3571259 4829139 Central Transport Administration Education and Training 8426927 Education and Training 8549303 Defence 8551342 Police 3443501 Natural Resources and Energy 3590971 Income Tax against gratuity Overpayment of salary Overpayment of salary F.D.S due Overpayment of salary F.D.S due Advance against gratuity Overpayment of salary Rental Certificate Overpayment of salary Advance against gratuity Overpayment of salary F.D.S due Overpayment of salary F.D.S due Advance
 against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Overpayment of salary F.D.S due Overpayment of salary F.D.S due Advance against gratuity Overpayment of salary Advance against Gratuity Page 172 1 341.72 267.48 684.39 8 224.43 Nil Nil 1 341.72 267.48 30/01/10 684.39 Nil Nil 8 224.43 06/01/10 271.87 10 000.00 271.87 10 000.00 17 211.00 5 000.00 47 979.48 Nil Nil Nil Nil Nil 03/11/09 17 211.00 5 000.00 47 979.48 31/12/08 20 000.00 20 000.00 Nil 16/01/10 4 012.20 Nil 4 012.20 596.10 596.10 Nil 5 553.48 Nil 5 553.48 12/10/09 1 097.73 10 000.00 1 097.73 10 000.00 Nil Nil 18/12/08 1 157.24 Nil 1 157.24 10 000.00 10 000.00 Nil 01/01/10 10 842.00 Nil 10 842.00 10 000.00 10 000.00 Nil 01/10/09 3 718.41 Nil 3 718.41 10 000.00 10 000.00 Nil 01/11/08 1 983.53 292.29 961.63 4 384.33 Nil Nil 1 983.53 292.29 30/01/09 961.63 Nil Nil 4 384.33 06/05/09 1 372.15 10 000.00 1372.15 10 000.00 Nil Nil 29/10/09 295.52 Nil 295.52 10 000.00 10 000.00 Nil 28/11/09 9 401.68 Nil 9 401.68 4279792 Education and Training 7068766 Education and Training 7036815 Education and Training 4255147 Defence 4149042 3928716 Correctional Services Central Transport Administration 7079223 Health 3301551 Public Works and Transport 9001125 Correctional Services 3704521 5080832 8046745 Information, Communication & Technology Police Education and Training Overpayment of salary Advance against gratuity Overpayment of salary Salary advance Advance against gratuity Overpayment of salary Study loan- short term Advance against Gratuity Overpayment of salary F.D.S due Overpayment of salary Garnishee Order Overpayment of salary F.D.S due Overpayment of salary Advance against gratuity Advance against gratuity Overpayment of salary Study loan short term Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Overpayment of salary F.D.S due Overpayment of
 salary F.D.S due Overpayment of salary F.D.S due 10 000.00 10 000.00 Nil 01/08/09 11 994.88 Nil 11 994.88 1 000.00 10 000.00 Nil 10 000.00 1 000.00 Nil 20/12/09 4 745.46 Nil 4 745.46 10 000.00 10 000.00 Nil 10 000.00 10 000.00 Nil 01/09/09 11 025.11 Nil 11 025.11 196.99 196.99 Nil 4 360.20 Nil 4 360.20 18/08/09 655.28 655.28 Nil 284.68 Nil 284.68 29/11/09 1 168.13 3 563.73 1 168.13 Nil Nil 3 563.73 08/09/09 8 000.00 8 000.00 Nil 5 000.00 5 000.00 Nil 09/10/09 5 027.54 Nil 5 027.54 5 000.00 5 000.00 Nil 10 000.00 10 000.00 Nil 28/09/09 688.24 Nil 688.24 10 000.00 10 000.00 Nil 17/12/09 5 935.31 6 525.12 Nil Nil 5 935.31 6 525.12 22/08/09 363.62 14 198.71 363.62 Nil Nil 14 198.71 16/11/09 718.83 10 489.17 718.83 Nil Nil 10 489.17 14/08/09 275.22 275.22 Nil 6031329 Correctional F.D.S due 283.06 283.06 Nil 12/02/10 Page 173 Services 4209476 Education and Training 3091111 Correctional Services 6354864 Defence 5061079 Education and Training 8245054 2048196 Natural Resources and Energy Public Works and Transport 3276631 Education and Training 4709309 Police 9002683 Natural Resources and Energy 5294729 Health 4127956 Police 9141843 Police 2528533 Police 436.37 Nil 436.37 3 700.00 Nil 3 700.00 23/12/09 1 622.58 Nil 1 622.58 183.00 183.00 Nil 930.25 Nil 930.25 28/10/09 1 538.05 1 692.71 1 538.05 Nil Nil 1 692.71 23/2/10 437.33 55 027.98 10 000.00 437.33 Nil 10 000.00 Nil 55 027.98 Nil 04/10/09 12 612.26 Nil 12 612.26 10 000.00 10 000.00 Nil 05/11/09 12 463.99 Nil 12 463.99 10 000.00 10 000.00 Nil 08/10/09 25 836.43 Nil 25 836.43 10 000.00 10 000.00 Nil 15/11/09 2 450.54 9 260.94 Nil Nil 2 450.54 9 260.94 31.12.09 716.10 10 000.00 716.10 10 000.00 Nil Nil 09/07/09 3 071.79 Nil 3 071.79 333.48 10 000.00 333.48 10 000.00 Nil Nil 26/02/10 241.33 9 262.42 Nil Nil 241.33 9 262.42 02/01/10 561.17 1 135.10 561.17 Nil Nil 1 135.10 27/01/10 772.04 4 382.91 772.04 Nil Nil 4 382.91 15/01/10 604.14 604.14 Nil Overpayment of salary Officer’s personal account Overpayment of salary F.D.S due
 Overpayment of salary F.D.S due Overpayment of salary F.D.S due Car Loan Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Overpayment of salary F.D.S due Advance against gratuity Overpayment of salary F.D.S due Advance against gratuity Overpayment of salary Overpayment of salary F.D.S due Overpayment of salary F.D.S due Overpayment of salary Advance Page 174 3409295 Education and Training 4897518 Education and Training 3484261 Police 9035140 Agriculture 3594762 Labour and Social Security 4442194 4877314 Education and Training Correctional Services 9725054 Income Tax 2329767 Defence 6142405 Information, Communication & Technology 2342696 Public Works and Transport 5287747 Correctional Services against gratuity Advance against gratuity C.P.A Rental Certificate Overpayment of salary Tax on backpay Advance against gratuity Overpayment of salary Overpayment of salary F.D.S due Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Overpayment of salary F.D.S due Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Overpayment of salary F.D.S due Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Study loan short term Advance against gratuity Overpayment of salary Page 175 10 000.00 10 000.00 Nil 07/07/09 23 767.00 8 961.00 8 251.00 Nil Nil Nil 23 767.00 8 961.00 8 251.00 1 449.21 Nil 1 449.21 10 000.00 10 000.00 Nil 7/11/09 5 949.46 Nil 5 949.46 2 114.22 Nil 2 114.22 1 002.52 8 000.00 1 002.52 8 000.00 Nil Nil 12/10/09 1 211.82 Nil 1 211.82 10 000.00 10 000.00 Nil 19/11/09 5 078.50 8 366.83 Nil Nil 5 078.50 8 366.83 11/07/09 72.93 10 000.00 72.93 10 000.00 Nil Nil 20/10/09 9 020.00 Nil 9 020.00 10 000.00 10 000.00 Nil 11/11/09 4 460.87 4 341.25 Nil Nil 4 460.87 4 341.25 17/12/09 182.67 10 000.00 182.67 10 000.00
 Nil Nil 10/12/09 4 352.20 Nil 4 352.20 10 000.00 10 000.00 Nil 24/01/10 424.13 Nil 424.13 10 000.00 10 000.00 10 000.00 10 000.00 Nil 25/11/08 285.62 Nil 285.62 3260124 10130335 Geological Surveys and Mines Education and Training 3105939 6239417 Geological Surveys and Mines Economic Planning and Development 7148411 Agriculture 2145042 Education and Training 6454562 Agriculture 3159639 Home Affairs 8601777 Defence Advance against gratuity Overpayment of salary Advance against gratuity Study-long term Rental Certificate Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Rental Certificate Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Comprehensive Insurance Salary advance Surchage Overpayment of salary House loan Overpayment of salary F.D.S due 10 000.00 10 000.00 Nil 28/10/09 8 756.63 Nil 8 756.63 10 000.00 10 000.00 Nil 19/01/10 43 869.72 460.00 4 079.38 Nil Nil Nil 43 869.72 460.00 4 079.38 10 000.00 10 000.00 Nil 29/09/09 197.83 Nil 197.83 10 000.00 10 000.00 Nil 24/09/09 886.08 Nil 886.08 10 000.00 10 000.00 Nil 11/11/09 1 484.00 6 537.69 Nil Nil 1 484.00 6 537.69 10 000.00 10 000.00 Nil 09/02/10 3 792.48 Nil 3 792.48 10 000.00 10 000.00 Nil 16/02/10 1 308.75 Nil 1 308.75 65 000.00 65 000.00 Nil 04/02/10 863.20 2 333.33 814.89 21 059.00 209881.08 4 453.05 Nil Nil Nil Nil Nil Nil 863.20 2 333.33 814.89 21 059.00 209 881.08 4 453.05 16/01/10 601.03 601.03 Nil 6586582 Police F.D.S due 225.88 Nil 225.88 24/10/07 9051412 Foreign Affairs Study-long 16 232.06 16 232.06 Nil 01/12/08 8766113 Agriculture term Overpayment of salary Advance Page 176 44 331.57 34 639.09 9 692.48 10 000.00 10 000.00 Nil 09/05/09 4075031 Education and Training 8005793 Agriculture 8297264 4279204 4807830 Education and Training Housing and Urban Development Education and Training 7106619 Education and Training
 8431732 Education and Training 2493383 Defence 2057981 Education and Training 5097845 Police 6507093 Correctional Services 3791440 Agriculture 9025275 Education and Training 18 952.58 3 429.39 Nil 3 429.39 18 952.58 Nil 6 293.14 Nil 6 293.14 02/10/09 82.21 82.21 Nil 2 928.43 Nil 2 928.43 14/08/09 5 635.72 696.37 Nil 696.37 5 635.72 Nil 02/07/09 10 000.00 10 000.00 Nil 16/09/09 6 658.17 Nil 6 658.17 10 000.00 10 000.00 Nil 08/01/09 5 140.64 Nil 5 140.64 10 000.00 10 000.00 Nil 08/01/09 31 138.00 6 459.04 Nil Nil 31 138.00 6 459.04 10 000.00 10 000.00 Nil 23/10/09 3 882.65 1 208.13 Nil Nil 3 882.65 1 208.13 26/04/10 30 000.00 30 000.00 Nil 27/02/10 956.12 1 980.24 Nil Nil 956.12 1 980.24 24/04/10 10 000.00 10 000.00 Nil 14/06/10 7 932.81 Nil 7 932.81 8 000.00 8 000.00 Nil 03/02/10 1 967.26 Nil 1 967.26 10 000.00 10 000.00 Nil 25/05/10 1 135.28 Nil 1 135.28 against gratuity Study-long term Overpayment of salary Overpayment of salary F.D.S due Overpayment of salary Rental Certificate F.D.S due Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Rental Certificate Overpayment of salary Advance against gratuity Overpayment of Salary Overpayment of Salary Advance against gratuity Overpayment of Salary Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of Salary Advance against gratuity Overpayment Page 177 8814137 Agriculture 3247099 4110606 Justice and Constitutional Affairs Sports, Culture and Youth Affairs 6092386 Income Tax 8726320 Agriculture 2332501 Defence 7096826 Public Works and Transport 325169 3151765 5106369 Central Transport Administration Tinkhundla Administration and Development Education and Training 3510845 Education and Training 7078143 Police 2234551 Education and Training of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of Salary Advance against Gratuity Overpayment of salary Car Loan advance
 Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of Salary Overpayment of salary F.D.S due Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Advance against gratuity Overpayment of salary Overpayment of Salary F.D.S due Salary advance Advance against gratuity Overpayment of salary Page 178 10 000.00 10 000.00 Nil 04/06/10 2 928.25 Nil 2 928.25 10 000.00 10 000.00 Nil 03/04/10 10 072.13 Nil 10 072.13 20 000.00 20 000.00 Nil 12/05/10 6 989.50 Nil 6 989.50 21 851.00 10 000.00 Nil 10 000.00 21 851.00 Nil 27/05/10 1 511.76 Nil 1 511.76 10 000.00 10 000.00 Nil 16/03/10 4 432.86 10 248.91 Nil Nil 4 432.86 10 248.91 24/04/10 119.26 10 000.00 Nil 10 000.00 119.26 Nil 20/04/10 2 937.77 Nil 2 937.77 10 000.00 10 000.00 Nil 12/02/10 12 406.50 Nil 12 406.50 10 000.00 10 000.00 Nil 07/04/10 5 687.08 Nil 5 687.08 10 000.00 10 000.00 Nil 26/02/10 997.39 Nil 997.39 10 000.00 10 000.00 Nil 25/10/09 1 814.99 6 722.63 Nil Nil 1 814.99 6 722.63 08/05/10 137.26 1 000.00 10 000.00 Nil Nil 10 000.00 137.26 1 000.00 Nil 19/03/10 2 672.75 Nil 2 672.75 10055771 Education and Training 4896919 Education and Training 9183157 Education and Training 4302641 Education and Training Advance against gratuity Study short- term Overpayment of salary Advance against gratuity Rental Certificate Overpayment of Salary Officer’s Personnal Account Advance against gratuity Rental Certificate Overpayment of salary Overpayment of salary F.D.S due Total Funds lost through advances 10 000.00 10 000.00 Nil 04/02/10 49 781.34 8 729.14 Nil Nil 49 781.34 8 729.14 10 000.00 10 000.00 Nil 15/11/08 91.00 5 351.00 4 326.00 Nil Nil Nil 91.00 5 351.00 4 326.00 10 000.00 10 000.00 Nil 14/08/09 1 850.00 19 320.04 Nil Nil 1 850.00 19 320.04 7 572.07 Nil 7 572.07 21/08/09 172.42 172.42 Nil E1 248 248.85 The Principal Secretary’s response referenced fin.25,
 dated 6th October 2011, stated that the Accountant General highlighted that the retirement and death benefits fall under the Ministry of Public Service because it is a Human Resource issue, was not convincing.
In addition, she only acknowledged responsibility for employees by the Ministry of Finance and referred the other cases to their respective Ministries, yet the Ministry of Finance is the overall overseer, on financial matters.
Therefore, rationally, as soon as the Retirement Funds Act came into operation the Accountant General, who is under the Ministry of Finance, should have developed a parallel system to ensure that all dues to government are recovered from employees either before or after retirement Ultimately, no remedial action has been taken to resolve this matter.
Further, it should be noted that the loss reported is only a tip of an iceberg considering that the Retirement Act was enacted in October 2005 and as such no deductions have been made since October 2005, to date.

In her reply, referenced CF dated 9th December 2011, the Controlling Officer stated that she has embarked in the process of designing a mechanism for following up the officers in question in order to recover the outstanding monies.
Page 179 She reiterated that it is the Ministry of Public Service’s responsibility as custodian of the Human Resource System to ensure that all Ministries take corrective measures to avoid loss of government money.

She further requested the Ministry of Public Service to instruct Ministries to contact the retired officers to repay the outstanding money owed to government.

At the time of writing this report no fruitful action had been taken.
27.2 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) 51 CTA Vehicle Charges (10) 2,694,286.00 8,364,282.50 5,669,996.50 Over Expenditure (%) 210 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.

In his reply, referenced FIN 25/79 dated 12th December 2011, the Controlling Officer concurred with my observation.
She stated that the Ministry was still liasing with the Swazi National Treasury to find out how the over expenditure occurred.

27.3 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).
However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.

Head Item 35 Personnel Costs (21) Released Budget (E) 19,057,996.00 Actual/Committed Expenditure (E) 22,381,919.12 Over Expenditure (E) 3,323,923.12 Over Expenditure (%) 17 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
Page 180 The reply, referenced FIN 25/77 dated 12th December 2011, stated that the cause of the over expenditure in the personnel cost, 21, was the increase of salaries by 4.5% which was not budgeted for.

However the Controlling Officer was silent about the authorization of this expenditure.

27.4 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) 168,000,000.00 60 Grants and subsidies – Internal Actual/Committed Expenditure (E) 228,000,000.00 Over Expenditure (E) 60,000,000.00 Over Expenditure (%) 36 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In her response, referenced 25/76 dated 12th December 2011, the Controlling Officer expressed difficulty to confirm the facts as true because according to her records there was under expenditure.

She agreed that actual expenditure was E228 000 000.00 but released funds were E239 000 000.00 and not E168 000 000.00.

However warrants supporting funds released amounted to E168 000 000.00.
27.5 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) 152,670,486.00 51 Grants +subsidi es Internal (10) – Actual/Committed Expenditure (E) 167,670,488.00 Over Expenditure (E) 15,000,002.00 Over Expenditure (%) 10 Page 181 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
The Controlling Officer did not respond to my observation and thus violated Financial and Accounting Instruction 0315 (ii) which states “it is the duty of all Accounting Officers to reply promptly to queries addressed to them by the Auditor General, giving particulars or information desired”.
27.6 Audit Inspection – Revenue Collection Audit inspections were carried out at the Mbabane and Mankayane Revenue offices and memoranda, referenced T4, Vol./4 dated 14th July 2011 and T4VII/10, dated 30th September 2011, respectively, were issued to the Principal Secretary, Ministry of Finance.
The Principal Secretary, in his response referenced 050/1251, dated 25th October 2011, concurred with my findings and informed me that he also discovered the anomaly and reported the matter to the Police, under case no.

RCCI 1749/2011.

While the efforts of the Principal Secretary are appreciated, his response is not satisfactory because there has not been any outcome from the Commissioner of Police.
In addition, the Theft and Kindred Offences Order No.22 of 1975 has not been followed, which provides for immediate suspension and prosecution of a Public Officer who has misappropriated public funds.

There was no response pertaining my report on the Mankayane Revenue Office.

(a) Misappropriation of Funds In my memorandum, quoted above, I reported that revenue collections amounting to E591,141.88 and E46,999.90, were embezzled at the Mbabane and Mankayane Revenue offices, respectively.
I drew the attention of the Principal Secretary that in both instances the suspect fraudsters used a similar tactic, by deliberately delaying deposits, into the consolidated fund, to future dates, to allow them to use the revenue for their personal gain.

I concluded that this practice was not an end in itself and it is obvious that without stringent controls the future collections were used to cover up the arrear bankings, endlessly.
This is confirmed by the banking pattern reflected in 2010 banking details.

Page 182 However, the misappropriation was confirmed and admitted by the suspects in their letters of confession.

Regarding Mbabane Revenue Office the suspect, Senior Accountant, employee no.3238400 confessed and apologized in his letter dated 1st March 2011 and in respect of Mankayane Revenue Office, the Accountant, employee 3555396, confessed and apologized, in her letter dated 10th March 2011.
The analysis of the misappropriated funds is as follows (b) Mbabane Revenue Office The misappropriated funds amounting to E591 141.88 were collected from the 2nd November 2010 to 17 June 2011, as shown in the table below; Mbabane revenue office Collection Date 02-11-2010 05-11-2010 12-11-2010 25-11-2010 29-11-2010 13-12-2010 22-12-2010 28-12-2010 29-12-2010 31-12-2010 01-02-2011 17-06-2011 Total Total Amount (E) Collected 103 271-85 51 415-50 62 049-89 45 891-72 84 730-04 45 438-65 121 067-58 66 049-96 76 875-20 53 125-50 50 708-25 39 666-10 800 290-24 Amount (E) Banked Deposit number slip Amount (E) not banked 71 391-65 - - 2 024-38 47 082-04 - 58 109-58 99-96 - - - 29 666-10 178 707-61 65478 No deposit slip No deposit slip 63219 65547 No deposit slip 65359 66826 No deposit slip No deposit slip No deposit slip 69175 and manual 31 880-20 51 415-50 62 049-89 43 867-34 37 648-00 45 438-65 62 958-00 65 950-00 76 875-20 53 125-50 50 708-25 10 000-00 E591 141.88 However, the Principal Secretary, after the suspect admitted the fraud, effected recovery of the money from his salary, from June 2011, in installments of E4654.37 for a period of ten years, until retirement in year 2021.
At the time of writing this report the amount recovered was E29926.20, from his salary.

I further noted, with concern, that currently this officer, after all deductions from the gross pay, remains with zero net pay.

I am very skeptical about the safety of government resources while the officer remains in the government system pending the hearing of the case.
(c) Mankayane Revenue Office Page 183 The misappropriated funds amounting to E46999.70 were collected from the 18th January 2011 to 31st January 2011 as shown in the table below.
Collection Date Total Amount Collected (Collected) (E) Amount Not Banked (E) 18-01-2011 19-01-2011 20-01-2011 21-01-2011 24-01-2011 25-01-2011 26-01-2011 27-01-2011 28 -01-2011 31-01-2011 Total 3,144-40 4,196-60 4,727-20 4,323-20 6,639-20 4,152-70 2,936-20 3,499-80 7,679-60 5,700-80 46,999-70 3,144-40 4,196-60 4,727-20 4,323-20 6,639-20 4,152-70 2,936-20 3,499-80 7,679-60 5,700-80 E46,999-70 However, records revealed that the Accountant General, in his memorandum dated 18th May 2011, reported to the Commissioner of Police that an amount of E74643.00 had been stolen by the Accountant at Mankayane Revenue Office.
I observed that by the time the audit was undertaken from 23rd May 2011 collections amounting to E27661.30 which were collected from 12th January 2011 to 17th January 2011 had been banked on 7th April 2011.

As a result the actual amount unbanked, at the time of the audit inspection was E46 999.70 I am not aware of any action taken to recover this money.
(d) Delayed Banking Having stated that delaying banking of revenue collections was the tool used to defraud government its revenue; the following tables confirm this practice as depicted below.
Mbabane Revenue Office Delayed banking Collection Date 06-08-2010 10-08-2010 13-08-2010 19-08-2010 26-08-2010 10-09-2010 19-09-2010 22-09-2010 Amount Collected (E) 69 452-65 103 008-50 45 406-90 Banking Date Amount Banked (E) Comments 20-10-2010 20-10-2010 07-09-2010 69 452-65 103 008-50 45 406-90 52 working days 7 working days 14 working days 42 476-00 54 559-44 66 059-80 27-08-2010 01-09-2010 26-11-2010 42 476-00 54 559-44 66 059-80 5 working days 3 working days 45 working days 47 509-40 1 474 168-08 23-12-2010 03-11-2010 47 509-40 1 474 168-08 46 working days 7 working days Page 184 26-09-2010 02-11-2010 25-11-2010 29-11-2010 22-12-2010 28-12-2010 17-06-2011 214 703-17 103 271-85 03-11-2010 22-02-2011 214 703-17 5 working days 71391-65 Cheques banked after 45 891-72 84 730-04 121 067-58 66 049-96 39 666-10 13-12-2010 22-02-2011 16-02-2011 31-03-2011 24-08-2011 2024-38 47 082-04 58 109-58 99 -96 20 046-10 76 working days 9 working days 59 working days 39 working days 66 working days 47 working days Mankayane Revenue Office Delayed banking \ April 2010 3,909.80 4,367.20 9,253.00 9,146.60 10,924.30 10/4/2010 15/4/2010 15/4/2010 15/4/2010 Collection date Collected Amount (E) Banking Date 1/4/2010 6/4/2010 7/4/2010 8/4/2010 9/4/2010 13/4/2010 14/4/2010 15/4/2010 22/4/2010 23/4/2010 28/4/2010 29/4/2010 30/4/2010 15/4/2010 27/4/2010 29/4/2010 27/4/2010 22/4/2010 29/4/2010 5/5/2010 5/5/2010 5/5/2010 5,128.10 1,177.60 2,355.80 1,671.00 5,454.40 3,510.00 3,191.60 1,984.20 May-2010 11/5/2010 14/05/2010 115,438.75 8,462.00 4,391.40 Collection date Collected Amount (E) Banking Date 3/5/2010 7/5/2010 10/5/2010 14/5/2010 18/5/2010 19/5/2010 20/5/2010 21/5/2010 5,227.00 2,822.80 6,058.60 2,392.00 1,396.40 28/05/2010 25/05/2010 26/05/2010 18/05/2010 26/05/2010 28/05/2010 Page 185 Banked Amount (E) Comments/del ay 9,146.60 5 working days 10,924.30 6 working days 3,909.80 5 working days 4,367.20 4 working days 9,253.00 3 working days 5,128.10 9 working days 2,355.80 8 working days 1,177.60 4 working days 1,671.00 4 working days
 3,510.00 3 working days 3,191.60 5 working days 1,984.20 4 working days 5,454.40 3 working days Comments 5 working days Banked Amount (E) 115,438.75 8,462.00 4 working days 4,391.40 5 working days 6,058.60 5 working days 2,822.80 4 working days 1,396.40 4 working days 2,392.00 4 working days 5,227.00 3 working days 25/5/2010 26/5/2010 27/5/2010 June-2010 1,809.00 9,049.00 2,401.00 3/6/2010 3/6/2010 3/6/2010 1,809.00 6 working days 9,049.00 5 working days 2,401.00 4 working days 16/06/2010 18/06/2010 18/06/2010 16/06/2010 3,206.40 2,909.80 2,996.60 2,068.60 2,405.00 Collection date Collected Amount (E) Banking Date 2/6/2010 8/6/2010 9/6/2010 10/6/2010 14/6/2010 15/6/2010 16/6/2010 17/6/2010 18/6/2010 23/6/2010 24/6/2010 25/6/2010 8,522.00 1,277.00 2,894.70 5,006.00 2,092.00 2,746.00 2,850.30 30/06/2010 24/06/2010 24/06/2010 30/06/2010 24/06/2010 24/06/2010 24/06/2010 2/7/2010 July-2010 12/7/2010 12/7/2010 12/7/2010 15/07/2010 15/07/2010 6,631.80 7,035.80 7,739.60 4,915.70 5,797.40 6,160.20 Collection date Collected Amount (E) Banking Date 1/7/2010 2/7/2010 5/7/2010 6/7/2010 7/7/2010 8/7/2010 9/7/2010 12/7/2010 13/7/2010 14/7/2010 15/7/2010 16/7/2010 19/7/2010 20/7/2010 21/7/2010 21,714.00 3,127.00 4,103.40 8,776.40 4,228.80 4,916.80 4,179.00 2,990.20 5,146.80 29/07/2010 29/07/2010 29/07/2010 29/07/2010 29/07/2010 23/07/2010 23/07/2010 23/07/2010 15/07/2010 23/04/2010 23/7/2010 27/7/2010 28/7/2010 12,236.60 4,380.60 4,133.60 10/8/2010 10/8/2010 10/8/2010 Page 186 Comments Banked Amount (E) 2,068.60 9 working days 3,206.40 5 working days 2,996.60 6 working days 2,405.00 5 working days 2,909.80 7 working days 2,850.30 6 working days 2,894.70 5 working days 1,277.00 4 working days 2,746.00 3 working days 5,006.00 4 working days 2,092.00 3 working days 8,522.00 4 working days Banked Amount (E) Comments 4,915.70 6 working days 7,035.80 5 working days 7,739.60 4 working days 6,160.20 6 working days 6,631.80 5 working days 5,797.40 4 working days 5,146.80 9 working days
 4,916.80 8 working days 4,228.80 7 working days 4,179.00 6 working days 2,990.20 8 working days 4,103.40 7 working days 3,127.00 6 working days 8,776.40 5 working days 21,714.00 4 working days working 12,236.60 4,380.60 9 working days 4,133.60 8 working days 11 days 29/7/2010 3,786.20 13/08/2010 3,786.20 30/7/2010 4,552.40 13/08/2010 4,552.40 working working 11 days 10 days August-2010 Collection date Collected Amount (E) Banking Date 2/8/2010 4,668.30 13/08/2010 3/8/2010 2,586.20 19/08/2010 2,586.20 Banked Amount (E) 4,668.30 8 working days working Comments 11 days 10 working days 3,511.00 3,655.80 9 working days 4,658.80 8 working days 4,176.20 7 working days 5,563.90 6 working days 2,660.00 5 working days 5,710.60 9 working days 6,991.80 8 working days 6,521.40 7 working days 4,704.80 6 working days 3,323.00 9 working days 3,872.60 9 working days 7,603.20 8 working days working 7,949.00 3,411.80 6 working days 3,498.80 5 working days 4,347.40 9 working days 4,322.20 working days 6,828.80 6 working days 13 days 3,511.00 3,655.80 4,658.80 4,176.20 5,563.90 2,660.00 5,710.60 6,991.80 6,521.40 4,704.80 3,323.00 3,872.60 7,603.20 19/08/2010 19/08/2010 19/08/2010 19/08/2010 19/08/2010 19/08/2010 26/08/2010 26/08/2010 26/08/2010 26/08/2010 1/9/2010 2/9/2010 1/9/2010 7,949.00 10/9/2010 3,411.80 3,498.80 4,347.40 4,322.20 6,828.80 2/9/2010 2/9/2010 10/9/2010 10/10/2010 10/9/2010 4/8/2010 5/8/2010 6/8/2010 9/8/2010 10/8/2010 11/8/2010 12/8/2010 13/8/2010 16/8/2010 17/8/2010 18/8/2010 19/8/2010 20/8/2010 23/8/2010 24/8/2010 25/8/2010 26/8/2010 27/8/2010 31/08/2010 September 2010 5,646.00 5,200.00 Collection date Collected Amount (E) 1/9/2010 2/9/2010 3/9/2010 7/9/2010 8/9/2010 9/9/2010 9/9/2010 365.00 19,175.60 8,407.80 7,775.50 13/9/2010 15,868.00 11,136.40 Banking Date Banked Amount (E) Comments 10/9/2010 10/9/2010 10/9/2010 17/09/2010 17/09/2010 17/09/2010 17/09/2010 24/09/2010 5,200.00 5 working days 5,646.00 4 working days 7,775.50 3 working days 8,407.80 7 working
 days 19,175.60 6 working days 365.00 5 working days 15,868.00 4 working days 11,136.40 8 working days Page 187 14/9/2010 15/9/2010 16/9/2010 17/9/2010 20/9/2010 21/9/2010 22/9/2010 23/9/2010 24/9/2010 27/9/2010 29/9/2010 30/9/2010 October 2010 8,449.60 8,659.00 3,534.60 7,109.00 9,597.80 11,116.20 3,717.80 7,807.70 9,813.00 26,863.60 13,560.60 35,932.00 24/09/2010 24/09/2010 24/09/2010 1/10/2010 1/10/2010 1/10/2010 1/10/2010 1/10/2010 1/10/2010 1/10/2010 8/10/2010 8/10/2010 8,449.60 7 working days 8,659.00 6 working days 3,534.60 5 working days 7,109.00 9 working days 9,597.80 8 working days 11,116.20 7 working days 3,717.80 6 working days 7,807.70 5 working days 9,813.00 4 working days 26,863.60 3 working days 13,560.60 6 working days 35,932.00 5 working days 8/10/2010 25/10/2010 20/10/2010 19/10/2010 19/10/2010 19/10/2010 19/10/2010 3,633.20 21,773.80 29,565.60 19,750.20 21,143.00 28,720.60 17,295.60 16,865.20 Collection date Collected Amount (E) Banking Date 1/10/2010 5/10/2010 6/10/2010 7/10/2010 8/10/2010 11/10/2010 12/10/2010 13/10/2010 14/10/2010 15/10/2010 18/10/2010 19/10/2010 20/10/2010 21/10/2010 22/10/2010 26/10/2010 27/10/2010 28/10/2010 29/10/2010 12,582.40 13,280.60 10,674.80 10,134.00 16,058.20 18,383.60 11,401.40 15,348.00 17,972.20 6,911.00 7,382.40 19/10/2010 25/10/2010 25/10/2010 25/10/2010 1/11/2010 1/11/2010 4/11/2010 4/11/2010 4/11/2010 1/11/2010 1/11/2010 1/11/2010 Comments Banked Amount (E) 21,773.80 4 working days 17,295.60 9 working days 29,565.60 8 working days 16,865.20 7 working days 21,143.00 6 working days 28,720.60 9 working days 3,633.20 5 working days 19,750.20 3 working days 18,383.60 7 working days 15,348.00 6 working days 17,972.20 4 working days 16,058.20 8 working days 10,134.00 7 working days 11,401.40 6 working days 12,582.40 5 working days 13,280.60 3 working days 10,674.80 5 working days 6,911.00 4 working days 7,382.40 3 working days November 2010 Collection date collected amount (E) 1/11/2010 2/11/2010 3/11/2010
 7,799.80 6,637.80 8,207.40 Banking date 11/11/2010 11/11/2010 11/11/2010 Comment banked amount (E) 7,799.80 7 working days 6,637.80 6 working days 8,207.40 5 working days Page 188 4/11/2010 5/11/2010 8/11/2010 9/11/2010 10/11/2010 11/11/2010 12/11/2010 15/11/2010 16/11/2010 17/11/2010 18/11/2010 19/11/2010 20/11/2010 23/11/2010 24/11/2010 25/11/2010 26/11/2010 11,382.20 4,700.60 8,237.20 3,832.80 2,240.20 15/11/2010 15/11/2010 19/11/2010 19/11/2010 19/11/2010 4,417.40 19/11/20103 3,180.00 6,047.20 3,733.80 6,175.40 4,262.80 8,315.20 5,442.80 5,702.60 3,252.40 2,996.80 5,896.00 24/11/2010 24/11/2010 24/11/2010 1/12/2010 1/12/2010 1/12/2010 1/12/2010 1/12/2010 1/12/2010 8/12/2010 8/12/2010 29/11/2010 6,565.80 23/12/2010 6,565.80 30/11/2010 7,322.50 28/12/2010 7,322.50 December-2010 Collection date Collected Amount (E) Banking Date Banked Amount (E) 2/12/2010 4,359.80 23/12/2010 4,359.80 3/12/2010 6/12/2010 7/12/2010 8/12/2010 9/12/2010 10/12/2010 13/12/2010 14/12/2010 15/12/2010 16/12/2010 17/12/2010 4,104.80 4,594.00 20/12/2010 20/12/2010 3,853.80 201/12/2010 6,532.00 6,420.00 5,768.00 6,834.00 5,688.80 5,003.20 6,572.80 20,510.80 20/12/2010 20/12/2010 20/12/2010 23/12/2010 23/12/2010 31/12/2010 31/12/2010 31/12/2010 21/12/2010 22/12/2010 7,366.80 6,734.40 19/01/2011 19/01/2011 Page 189 20/12/2010 7,998.60 19/01/2011 7,998.60 11,382.20 6 working days 4,700.60 5 working days 8,237.20 8 working days 3,832.80 7 working days 2,240.20 6 working days 4,417.40 5 working days 3,180.00 7 working days 6,047.20 6 working days 3,733.80 5 working days 6,175.40 9 working days 4,262.80 8 working days 8,315.20 7 working days 5,442.80 6 working days 5,702.60 5 working days 3,252.40 4 working days 2,996.80 8 working days 5,896.00 7 working days working 17 days 18 days working Comments 14 days 13 days working working 4,104.80 4,594.00 9 working days 3,853.80 8 working days 6,532.00 7 working days 6,420.00 6 working days 5,768.00 5 working days 6,834.00 7 working days 5,688.80 6 working days
 working 5,003.20 6,572.80 9 working days 20,510.80 8 working days working 10 days 20 days 19 days working working 7,366.80 6,734.40 18 23/12/2010 28/12/2010 29/12/2010 30/12/2010 3,235.00 5,536.80 8,003.40 8,731.30 7/1/2011 7/1/2011 7/1/2011 7/1/2011 days 3,235.00 9 working days 5,536.80 7 working days 8,003.40 6 working days 8,731.30 5 working days working 12 days 31/12/2010 3,839.60 19/1/2011 3,839.60 January-2011 Collection date Collected Amount (E) Banking Date Banked Amount (E) 3/1/2011 5,875.80 19/01/2011 5,875.80 4/1/2011 8,440.80 19/01/2011 8,440.80 5/1/2011 8,874.50 21/01/2011 8,874.50 6/1/2011 8,217.40 21/01/2011 8,217.40 7/1/2011 9,349.60 31/01/2011 9,349.60 10/1/2011 10,499.60 31/01/2011 10,499.60 11/1/2011 6,441.10 31/01/2011 6,441.10 12/1/2011 3,521.80 7/4/2011 3,521.80 13/1/2011 9,122.60 7/4/2011 9,122.60 14/1/2011 10,781.70 7/4/2011 10,781.70 17/1/2011 4,235.20 7/4/2011 4,235.20 Comments 11 days 10 days 11 days 10 days 21 days 14 days 13 days 60 days 59 days 58 days 53 days working working working working working working working working working working working February 2011 Collection date 3/2/2011 4/2/2011 7/2/2011 Collected Amount (E) 2,888.40 4,719.00 4,379.60 Banking Date 11/2/2011 11/2/2011 11/2/2011 Banked Amount (E) 2,888.40 4,719.00 4,379.60 Comments/delay 5 working days 4 working days 3 working days It is evident that the delays in banking ranged between 3 working days to 76 working days, which is irregular.
Further, more enquiries revealed that bankings delayed for 2 working days were not normal and should be accompanied with written explanations.

However, no written justifications were produced regarding these collections, Page 190 In view of the above situation, I have no doubt that the monies collected were borrowed without authority and at no interest and attributed, adversely, to the prevalent cash flow crisis.
In addition, Financial Regulations, which the Accountants are clearly acquainted with, were deliberately violated, specifically the Financial and Accounting Instruction 0501(iv) which states that “It is the duty of accounting officers, “To pay over their entire collections to a Revenue office or into the bank for the credit of a government account, as frequently as possible and preferably on a daily basis,” and Financial and accounting Instruction 0502(ii).
which states that “between the time of receipt and the time of payment into bank or Treasury Revenue Office, no revenue collections shall be used in any way whatsoever, nor shall any officer advance, lend or borrow any sum for which he is accountable”.

I am grievously concerned that Government revenue is siphoned at the point of collection by the officials who are entrusted with the responsibility of this service.
I am further disturbed by the fact that although the Controlling Officer is aware of the theft no disciplinary action has been taken on the unscrupulous employees.
Instead, the Accountant has been transferred from Mankayane Revenue Office to Matsapa Revenue Office, where government revenue is still exposed to the same risk of theft and the Senior Accountant, at Mbabane Revenue Office, has been placed in another unit within the government accounting system and still handling government transactions, which also need to be safeguarded.
Moreover, it is noteworthy that the internal controls instituted are quite effective, especially the banking supervision and credit of revenue collections into the government system because it reflects all the transactions that occur.

This system is such that the revenue collected, revenue banked and revenue unbanked are clearly reflected in the computerized system, online.
But due to laxity in the supervision of the collections and bankings by their supervisors they managed to overlook the Regulations and default bankings for personal gain.

The worst scenario is that the supervising officer, at the Mbabane Office, when the fraud emerged, expressly stated that he vested too much trust on the Senior Accountant because he, senior Accountant was a Christian and a preacher yet the Regulations carry no exception conditions for adherence.
It should be noted that the cash flow crisis is aggravated by the unscrupulous officers who enrich themselves with public funds without remorse.

If punitive measures are not taken against the offenders to prevent future occurrences, the economy of this country will not improve.

In her reply, referenced FIN 25/78 dated 12th December 2011, the Controlling Officer concurred with my findings.
She further stated that on Page 191 the Mbabane Revenue Office, the Treasury Executives and the officer were summoned to a meeting at the Civil Service Commission where the matter was deliberated.

The Civil Service Commission wrote a letter to the officer to which he responded and the Ministry is awaiting the outcome.

There was no comment on the similar matter on the Mankayane Revenue Office.

However both issues have not been addressed.


(e) Overpayment of Salary-Employment number 4771029 An examination of records revealed the following anomalies which the Principal Secretary, Ministry of Finance did not address satisfactorily.

Records revealed that an officer, employment number 4771029 who left the 30th November 2010 was Government service on resignation on inappropriately paid salary for December 2010, amounting to E17 796.67.
I noted that on the pay date, the Controlling Officer made efforts and requested Treasury to recall the salary from the bank but all in vain.

However, in response to the above anomaly, the officer offered to refund the overpaid amount at E500.00 per month for a period of 36 months.

I am disturbed by the arrangement made between the Ministry and the officer because it implies that the officer was granted an interest free loan, which is repayable over a period of 36 months.
The officer should have acted responsibly and returned unauthorised salary erroneously paid to him and the Ministry should have stopped the salary on time because the intention to resign was indicated on the 24th September 2010.

This indicates that the Ministry had ample time to avoid the situation.

(f) Rental Arrears The same officer was occupying Government house which drew a rental payment of E47.00 per month.

However, he paid rent between the period 1st October 1996 to 31st December 2004.
In January 2005 his rental deduction was stopped without the formal ceasation slip yet the officer was still occupying the Government house up to February 2009.

Rent arrears for the 50 months between the period 1st January 2005 to February 2009 amounted to E2 350.00.

In March 2009 the officer moved to another Government house number 226 Hlanganani Road.

Rental payment per month was E100.00.

Records revealed that rental deductions were not effected from 1st March 2009 up to 31st October 2010.
Therefore rental arrears for 20 months between the period 1st March 2009 up to Page 192 31st October 2010 amounted to E2 000.00.

Notably out of the rent owing amounting to E2 000.00 the officer managed to settle an amount of E900.00 leaving the balance of E1 100.00 owing.

(g) Occupation of Government house by a Non- Civil Servant After the officer’s last day of service on 30th November 2010, he continued to occupy the Government house until February 2011.
In accordance with General Order A779, the officers who occupy Government quarters beyond their last date of service should be charged open market rental.

In this case, the officer was supposed to pay E1 820.00 per month since the house occupied was under category D. Therefore rent owing for three (3) months amounted to E5 460.00 for the period 1st December 2010 to 28th February 2011.
The total rental to be recovered from the officer is E8 910.00 which is made up of E2 350.00+E1 100.00+ E5 460.00 and Government is in dire need of this revenue.

The Controlling Officer did not respond to my observation and thus violated Financial and Accounting Instruction 0315 (ii) which states that “it is the duty of all Accounting Officers to reply promptly to queries addressed to them by the Auditor General, giving fully the particulars or information desired”.
Page 193 HEAD: 40 MINISTRY OF LABOUR AND SOCIAL SECURITY Objectives: Labour Regulations - To create, maintain and improve an environment for Sustainable development through decent work and to Promote social protection and social justice.
28.0 AUDIT INSPECTION REPORT: MINISTRY OF LABOUR AND SOCIAL SECURITY An audit inspection report on the accounts for the financial year 2007/2008, referenced L32/Vol.II/10, dated 26th October 2010, presenting audit findings was issued to the Principal Secretary in the Ministry of Labour and Social Security.

The Principal Secretary in her unreferenced response, dated 15th March 2011, and reference MOLSS/AC/3a/Vol.II dated 6th June 2011 respectively, did not address the following paragraphs satisfactorily.
(a) Fraudulent Sitting Allowances Claims In my report referenced above, I communicated to the Principal Secretary that a sum of E344, 858.84 was unjustifiably paid to Statutory Board members who claimed sitting and reimbursement car mileage allowances on dates when there were no board meetings, on dates when members were absent, on repeated dates, and claimed using unauthorized Legal Notices (forged member lists) as supporting documents.
The tables below show a summary of such cases: Table 1 Claims paid to the Wages Council when there were no meetings: Name of Claimant Ben Simelane Dumsan Dlamini Phindile Fakudze Sibongile Malinga Busi Jele Jekwa Mkhaliphi Henry M. Mazibuko Meshack L. Simelane Jabulane Mabuza Khetsiwe Hlophe Peggy M. Lunes Maurice Dupont Thokozani Hlatshwayo Car Mileage (E) Total Claim Paid 35, 234.20 13, 866.56 13, 866.56 Nil Nil Nil Nil 957.90 Nil Nil Nil Nil Nil (E) 80, 684.20 30, 016.56 35, 016.56 9, 900.00 8, 550.00 7, 200.00 6, 750.00 3, 657.00 1, 350.00 1, 350.00 1, 350.00 1, 350.00 1, 800.00 Sitting Allowance (E) 45, 450.00 21, 150.00 11, 700.00 9, 900.00 8, 550.00 7, 200.00 6, 750.00 2, 700.00 1, 350.00 1, 350.00 1, 350.00 1, 350.00 1, 800.00 Page 194 Nil Nil Nil Nil Nil Nil Nil Nil 451.52 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 96.00 Nil Nil Nil Nil 114.24 Nil Nil Nil Nil Nil Nil Nil Nil Nil 275.90 Nil Nil Nil Nil E255, 066.62 Elecia Hlatshwayo Nompumelelo Ginindza Sipho Mamba Nomcebo Ngwenya Ntombi Dlamini Ric M. khoza Mduduzi Gama Phumzile Dube Caleb Mlangeni Jane T. Dlamini Allan Fawcet Shirly Middleton Margaret Maziya Mirriam Nxumalo Nokuthula Simelane Nonhlanhla Msibi Mgadlela Sitfungo Muzi Mdluli John S. Mntshali Dumsile Magagula Sabelo K. Matsebula Mduduzi P. Khumalo Mduduzi Hlophe Erickson Dlamini Celumusa Dlamini Peterson Dlamini Carol Ngcobo Nellie Dlamini Zodwa Mabuza Jobe Mashwama Dr. Priscilla Dlamini Jinoh Nkambule Sihle Mlangeni Vincent Ncongwane Siphon Mamba Michael Mntshali Khabo Dlamini Felton Mhlongo Kenneth Dlamini Hezekial Mabuza Total Page 195 Falsified claims paid to the Wages Council attached with unauthorized/forged Board Member lists.
Table 2 Name of Claimant Sitting Allowance (E) Dumsani Dlamini Mfaniseni Mkhaliphi Jabulane mabuza Elecia Mabuza Eugine Malambe Ben Simelane Perfect Masuku Thokozani Hlatshwayo Khetsiwe Hlophe Stanford Vilakati Busi Jele Simanga Hlatshwayo Ben Gwebu Mazwi Mbatha Total 26, 100.00 450.00 3, 150.00 4, 500.00 2, 250.00 2, 250.00 1, 800.00 1, 800.00 1, 800.00 1, 350.00 1, 350.00 1, 350.00 450.00 450.00 Table 3 Car Mileage (E) Total Claim Paid 19, 592.22 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil (E) 45, 692.22 450.00 3, 150.00 4, 500.00 2, 250.00 2, 250.00 1, 800.00 1, 800.00 1, 800.00 1, 350.00 1, 350.00 1, 350.00 450.00 450.00 E74, 492.22 Claims paid on repeated Sitting dates (claimed twice for the same dates) Claimant Statutory Board Membership Ben Simelane The Wages Council Status Secretary Ben Simelane Ben Simelane Labour Advisory Board Essential Services Committee Secretary Secretary Henry Mazibuko The Wages Mduduzi Khumalo Council Labour Advisory Board Employee Representative Employee Representative Siphon Mamba Essential Services Committee Employee Representative Kennedy Dlamini Essential Services Dumsile Magagula Total Committee Labour Advisory Board Employee Representative Government Representative Date of sittings 22.05.07 21.08.07 23.08.07 13.12.07 25.10.07 08.11.07 20.08.07 23.08.07 06.11.07 12.11.07 21.08.07 23.08.07 15.03.07 22.03.07 08.11.07 19.09.07 19.10.07 06.11.07 09.10.07 19.10.07 07.03.07 Total Amount Overpaid (E) 2, 250.00 900.00 1, 800.00 1, 800.00 1, 350.00 1, 350.00 900.00 450.00 E10, 800.00 Page 196 Claims paid for meetings not attended.
(absentees) Table 4 Claimant Statutory Board Membership Status Sitting Dates Total Paid Busi Jele Wages Council Employee Representative Employee Representative Nompumelelo Ginindza Sabelo Matsebula Labour Advisory Board Government Wages Council Jan Sithole Labour Advisory Board Employee Representative Dumsile Magagula Labour Advisory Board Government Representative Vincent Ncongwane Thomas Dlamini Total Representative Labour Advisory Board Employee Representative Labour Advisory Board Employee Representative 15.05.07 22.05.07 07 03.07 09.11.07 23.03.07 08.11.07 08.11.07 08.11.07 08.11.07 (E) 450.00 450.00 900.00 900.00 450.00 450.00 450.00 E4, 500.00 Responding on the issue of fraudulent claims, the Controlling Officer, in her unreferenced memorandum, dated 15th March 2011, stated that on the 5th march 2010, the issue on audit findings relating to fraudulent claims was brought to the attention of the Secretary of all the Wages Council and Labour Advisory Boards, Mr. Ben Simelane (Senior Labour Officer) who was implicated.
She further stated that on the 5th April 2010 and 2nd June 2010, respectively, they also had discussions with the officer, (Mr. Simelane) and he agreed that he would pay E183, 782.98 to government in respect of the fraudulent claims.

In addition, she also stated that during the meeting, the officer also asked to be given time in order to decide on how he was going to repay the money to government.
The Controlling Officer also stated that on the 25th June 2010, the officer paid E30, 000.00 to government in respect of the fraudulent claims.

Furthermore, the Controlling Officer stated that on the 16th February 2011, the officer submitted a letter of consent, informing the office that a monthly deduction of E1, 000.00 was to be made from his salary with effect March 2011, until the balance was fully paid.
At the time of writing this reporting an amount of E9, 000.00 had already been recovered, and a balance of E143, 782.98 was still outstanding.

Page 197 According to Government records, the officer was born on 28th November 1962 and will therefore be retiring from the Public Service on 28th November 2022.

As a result, a balance of E11, 782.98 will still be outstanding after retirement.
Although the Controlling Officer responded on the issue of E183, 782.98, but she did not state who was to be held responsible for the balance of E161, 075.86 of the fraudulent claims.

In her response referenced MOLSS /AC / 3a/ Vol.II, dated 6th June 2011, she further advised that upon their further investigation, they also discovered that Mr. Simelane had colluded with Mr. Dumsani Dlamini, employed by the Ministry of Commerce (Employment no.
8926290, and had written a letter requesting the Ministry that E80, 708.78 be deducted from the officer’s salary in respect of the fraudulent claims.

However, at the time of writing this report I was not aware of any recoveries made from the latter officer.

In my memorandum referenced above, I also advised the Controlling Officer to report the issue of fraudulent claims to the Police, or Anti-Corruption Unit, so that the law could take its course.
In the same memorandum I further drew her attention to the Theft and kindred offences by Public Officers Act of 1975which has not been followed, that provides for immediate suspension and prosecution of a Public Officer who has misappropriated public funds.

However, at the time of compiling this report I was not updated about the developments of the cases.
(b) Overpayments of Telephone Bills I also reported about an amount of E32, 905.71 which was double paid to SPTC in respect of telephone bills for the Ministry.

These bills were all pertaining to the month of August 2007.

Below is a table depicting such double payments.

Voucher no.

Date of Payment Phone no.


Account 070012 110117 070014 110117 070014 110117 070014 110118 070014 09.10.07 12.02.08 09.10.07 12.02.08 09.10.07 12.02.08 09.10.07 12.02.08 09.10.07 4055155 4055155 4041440 4041440 4040215 4040215 36336509 36336509 36336508 no.

0341916 0341916 0311111 03111111 0620807 0620807 0406678 0406678 0406651 Page 198 Cheque no.
119327 177435 119329 177435 119329 177435 119329 177435 119329 Total Overpaid (E) Total amount Paid (E) Total A2011463 A2011463 E32, 905.71 Financial and Accounting Instruction 0509 (i), clearly states that “Immediate action must be taken to recover any amounts overpaid”.
On the other hand Financial and Accounting Instruction 0802 (ii) also states that “In the event of an incorrect payment being made, the authorizing officer will be Page 199 held personally responsible and will be liable to be surcharged therewith in accordance with the Finance and Audit Law”.

Responding on the issue of the overpayments, the Principal Secretary stated that when they checked with SPTC, they found that the amounts were indeed paid twice.
However, they could not ascertain the actual invoices overpaid.

As a result, it was very difficult for the Ministry to recover the money overpaid.

At the time of compiling this report, I was not aware of any recoveries made in respect of the money overpaid.
(c) Payments in Excess of Allowable Limits for Mobile and Residential Telephones I further reported about an amount of E3, 097.43 which was paid in excess of the allowable limits in respect of the mobile and residential telephone facilities for the then Labour Commissioner, employment no.

4187211.

Establishment Circular no.


2 of 2010, Revised Guidelines for the Provision of Mobile Telephones and Residential Telephones, II(iv), states that any excess of set limits at the end of the government financial year will be settled by the handheld user.

In response, the Controlling Officer stated that the issue on the excess payments was brought to the attention of the former Labour Commissioner Ministry of Justice who responded by paying an amount of E1, 585.39 instead of E3, 097.43.
This money was receipted on General Receipt no.

532156, dated 27th May 2011.

However, a balance of E1, 512.05 is still outstanding.

(d) Double Payments of Invoices An overpayment of E14, 136.76 occurred in respect of services rendered by the following suppliers.

Invoices were paid twice for the same services.

The table below shows analysis of such double payments.
Supplier Invoice no Date Voucher no Cheque no Amount paid (E) Total (E) Times of Swaziland Times of Swaziland Swazi Observer INC10947 Swazi Observer INC10947 Tums George Hotel 10904 IN162016 28.07.07 IN162016 28.07.07 120085 199473 5, 702.40 120379 212108 5, 702.40 19.07.07 19.07.07 29.02.08 120381 120598 120072 212110 211875 199473 5, 166.00 5, 166.00 2, 470.00 Page 200 Tums George Hotel 10904 18.03.08 120446 198258 2, 470.00 TOTAL E14, 136.72 The Controlling Officer in her response denied the double payments, citing that it was difficult to trace payments using voucher numbers.
As a result, at the time of compiling this report, I was not aware of any action taken in recovering the money.

Page 201 HEAD: 41 MINISTRY OF PUBLIC SERVICE Objectives: The Ministry’s responsibility is Personnel Administration of the Public Service .

To meet staffing requirements of ministries/departments in accordance with Civil Service Commission Regulations.
To control the size and rates of pay of the public service and to improve its overall quality; to provide the necessary training for civil servants and adequate manpower for public service needs; to provide central advisory administrative and technical services to Government agencies.

29.0 LEASE OF OFFICE ACCOMMODATION A memorandum reference H8Vol.XII/83, dated 25 November 2010 was issued to the Principal Secretary Ministry of Public Service.
However, an unreferenced reply dated 21 December 2010, was not satisfactory in that the Principal Secretary only concurred with my findings but did not address the concern raised.

As a result a follow up memorandum, referenced H8/Vol.XII/87 dated 9th May 2011, was issued requesting information on how the issue at hand would be rectified but there was no response.
The bone of contention was that a loss amounting to E261 000.00 was suffered by government through rental payment for a leased office space, on Lot 218, Mbabane situated on the corner of Somhlolo street and Muir street which was never occupied.

The prospective occupant was the Ministry of Labour and Social security.

The lease agreement was for a period of 10 months, commencing from 1st June 2010 to 31st March 2011.
The leased office space was to accommodate two new departments namely National Employment Service and Scholarship Secretariat, under the Ministry of Labour and Social Security.

The departments never occupied the offices.

The offices were left vacant for 6 months commencing 1st June 2010 to 23 November 2010 whilst drawing a monthly rental of E43 500.00 which totalled E261 000.00.

However, the lease agreement was terminated on 23rd November 2010 after my office has raised concern about this anomaly.
The Controlling Officer did not exercise economy in the use of funds because he committed government funds for no benefit, This scenario indicates that government funds were committed before carrying out a through research on logistics and other requirements to allow occupation of the premises.

Page 202 I am concerned about the drainage of this precious scarce resource at the time of financial adjustment and economic meltdown.
Ultimately public funds were wasted since there was no value for money in this expenditure.

Further, at the time of writing this report I am not aware of any action taken regarding the loss incurred.

In his reply, referenced ESC 36/17, dated 30th August 2011, the Controlling Officer, distanced himself from the responsibility of the loss, suffered by government.
He argued that he signed the lease agreement on the promise that the Ministry of Labour and Social Security assured him that funds were available to pay the rental.

He only became aware that the offices were not occupied, through the report from the Auditor General and thus immediately terminated the lease on 31st December 2010.
The reply is not convincing because the Ministry of Public Service is responsible for accommodation and as a result the rental payment was made by the Ministry of Social Security through this Ministry.

Therefore it cannot be absolved from the duty to exercise due care and economy in the use of funds.

Further, that the lease has since been terminated does not make good the loss incurred.
Page 203 HEAD 43 INFORMATION, COMMUNICATION AND TECHNOLGY Objectives: To ensure adequate provision of information and the Development of ICT related policy and regulations 30.0 AUDIT INSPECTION – SWAZILAND BROADCASTING & INFORMATION SERVICE An inspection of Swaziland Broadcasting and Information Services for the financial year 2009/10 was conducted and an inspection report referenced B4/Vol.II.7 dated 13 December 2010 was issued.
The Controlling Officer in his memorandum referenced SBIS/C/115 dated 20th January 2010 concurred with my observations but did not take any corrective action.

(a) Outstanding Advertising Fees In the inspection report quoted above, I drew the attention of the Controlling Officer advertising fees amounting to E183 286.00 were still owed by clients for period 1st August 2008 to 30th September 2010.
However the response referenced ICT/1/5 dated 23rd November 2011, revealed that, in pursuit of my report follow ups were made and as a result an amount of E92 338.00 has been recovered leaving an amount of E90 948.00 still outstanding.

The response further reflect serious repercussions, from the prolonged debt collection, because some clients are untraceable, and some have requested time to verify the invoices before payment is made while some have only made promises to pay.
In addition, some alleged payments are not traceable in the government accounting system and thus, without adequate documentary evidence can not be considered as settled.

The outstanding fees are as follows:- INVOICE DATE INVOICE NO NAME OF CUSTOMER Aug. 2008 8909 Nedbank Swaziland PURCHASE ORDER NO.
5105 AMOUNT (E) STATUS 4,358.00 Paid GR 360749 dated Page 204 05/02/09, but not traceable in the accounting system 1,539.00 Letter written to Attorney General to assist in tracing them 1,364.00 Letter written to Attorney General to assist in tracing them 825.00 Letter written to Attorney General to assist in tracing them 1,438.00 They refused to pay and claimed that they are still waiting for government to pay them first 1,200.00 They refused to pay and claimed that they are still waiting for government to pay them first 1,777.00 Paid cheque number 713 dated 30/09/08 but no evidence to confirm payment and not traceable in the accounting system 2,929.00 Payment being processed 1,026.00 Paid cheque Jan. 2009 8955 ABC Fashion House 0365 Feb. 2009 9002 ABC Fashion House 0381 Sept. 2010 9390 ABC Fashion House 0454 Sept. 2010 9373 Technisol 03/2010 Sept. 2009 9134 Technisol 06/2009 Jan 2010 9237 Matata 4317 March 2010 Aug 2009 9268 Matata 9117 Matata 4378 3339 Page 205 Feb 2009 8990 Swaziwire Industry - no.
713 dated 30/09/08 , no evidence to confirm this 2,565.00 Company still verifying invoice Aug 2009 9128 June 2009 9083 Sept 2009 9133 May 2010 9299 Sept 2009 9141 Dec 2008 8940 Swaziwire Industry Swaziwire Industry Swaziwire Industry Swaziwire Industry Swd Building Society Swd Building Society 45964 2,565.00 Company still verifying invoices 45960 2,665.00 Company still verifying invoices 45966 2,565.00 Company still 45973 2,665.00 Verifying verifying invoices - - invoices 6,669.00 Client verifying invoices 7,182.00 Client verifying invoices July 2009 9101 Technoserve -- 1,750.00 Acknowledged debt but to seek clarification in due course Sept 2009 9149 Technoserve - 1,475.00 Acknowledged debt but to seek clarification in due course Sept 2009 9151 Technoserve - 3,636.00 Acknowledged debt but to seek clarification in due course Dec 2009 9209 Technoserve - 238.00 Acknowledged debt but to seek clarification in due course Nov. 2009 9195 Multichoice 74 1,500.00 Debt will be settled - 9165 Once Always 3143 3,125.00 Verifying invoices Page 206 Dec 2009 9207 Feb. 2010 9259 - 8883 Feb. 2009 9007 The Wheel Centre 216 The Wheel Centre 229 Wellness Zone Standard Bank Sept. 2009 9154 Dec 2008 8929 Business Place Photo Pro Dec. 2008 8926 Photo Pro Sept 2009 9132 National Chicks TOTAL - - - - - - 3,125.00 Payment is being processed 1,375.00 Payment is being processed 7,408.00 Debt will be settled 17,030.00 Acknowledged debt but requested a few days to process payment 1,666.00 Verifying invoices 788.00 Acknowledged debt, promised to send a letter 1,100.00 Acknowledged debt and promised to send a letter 3,400.00 Acknowledged debt in writing and promised to pay E90 948.00 I also noted with concern that the debtors age was too long since some advertising fees had been outstanding for more than two (2) years.
There was no evidence that follow ups were made to ensure settlement of the debts.

This indicates a carefree attitude, by the Controlling Officer.

Therefore, there was no adherence to Financial and Accounting Instruction 0202(i) which prescribes prompt collection of revenue, as one of the duties of the Controlling Officer.

Ultimately, this affects, negatively, the cash flow position of government since revenue collections are credited to the consolidated fund.

(b) Unauthorised Discounts Page 207 .


I drew the attention of the Controlling Officer that discounts and free slots were allowed for advertisement broadcasts to some clients, without authority.

As a result government was deprived of revenue amounting to E3 319.00 despite that government has offered reasonable rates of E275.00 for morning slots and E238.00 for evening slots, since it is not profit oriented, due to the discounts and free advert broadcasts or both.
There was no explicit criteria or guidelines on conditions to be met in order to qualify for the price reductions or free slots.

In his response the Controlling Officer concurred with my findings that there was no policy on discounting and he informed me that it was done on a natural justice basis depending on the number of days of continuous advertising.

He further stated that there was also a commercial code allowing the Director to use his discretion to award discounts.
However, I could not identify any clause pertaining to this discretion in the copy of the code that was furnished to me, on this matter.

Therefore, I consider the amount not tendered to government through this irregular practice to be unauthorized and a loss.

Further, this act is tantamount to deliberate undercollection of revenue.
The beneficiaries from the discounts and free slots are:- CLIENT Expected amount E Actual Amount (E) Discount allowed (E) Free slot amount (E) Transaction details Total price reduction (E) Phathwakahle 5,643.00 4800.00 363.00 480 Bed City 1,100.00 825.00 - 275.00 843 10 days adverts from 15th November to 26th November 2010 and was granted E33.00 discount per day and one free slot 275.00 3 days adverts from 6th to 9th November 2010 and granted one morning free slot Logico Limited 6,669.00 5,643.00 - 1,026.00 1,026.00 Eleven days adverts, morning and evening from 1st October to 25th October 2010 and was granted 2 Page 208 Mr Matata 4,104.00 2929.00 1,175.00 - 1,175.00 8 sports adverts free slots morning and evening morning and evening from 19th to 27th February 2010 and was granted a discount of E1175.00 TOTAL 3,319.00 30.1 Over expenditure on Project M33170 – Establishment of Science and Technology Park Over expenditure beyond budget provision and appropriated act is illegal in that it distorts the fiscal budget of any country.
This is further supported by financial and accounting instruction 0202 (ii) which disallows unathourised over expenditure.

An amount of E40 000 000.00 was budgeted and only E10 222 550.00 was released for the establishment of the Science and Technology Park.

Actual expenditure amounted to E18 797 310.00 resulting in over expenditure of E7 574 760.00 (67%) E10 222 550.00 – E18 797 310.00).

The Controlling Officer is expected to explain the authority that allowed him to spend beyond the released funds.
In his reply, referenced ICT/8/1/2, dated 7th December 2011, the Controlling Officer concurred with my findings.

He stated that a mis-posting occurred whereby he instructed the Treasury to charge a wrong account when making payment for the project.

This error has not been rectified.

30.2 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item 43 Travel, Transport and Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) Over Expenditure (%) 944,812.00 1,055,432.64 110,620.64 12 Page 209 Vehicle Communications (13) CTA Charges (14) Travel, Transport and Communication (15) CTA Charges (17) Vehicle 43 43 43 1,212,062.00 2,337,596.10 1,125,534.10 672,017.00 766,436.89 94,419.89 93 14 67,000.00 218,487.75 151,487.75 226 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his reply, referenced ICT/8/1/2, dated 14th December 2011, the Controlling Officer concurred with my findings.

The reasons given for the over expenditure on items 022, travel transport and communication activity 13 and 002, CTA charges activity 14 were that funds were committed in anticipation that the approved budget would be fully released.
However regarding item 022 travel transport and communication, activity 13 the over expenditure was due to an error made in reallocation from one department to another However, I am concerned that the Controlling Officer did not obtain any authority to overspend.

Page 210 HEAD 44 ELECTIONS AND BOUNDARIES COMMISSION Objectives: To promote confidence in the conduct and management of Electoral process.
31.0 AUDIT INSPECTION: ELECTIONS AND BOUNDARIES COMMISSION An audit inspection was carried out at the Elections and Boundaries Commission and a report referenced E24.15 dated 1st April, 2010 was issued to the Head of Secretariat.

The Head of Secretariat in his reply referenced EBC/36 dated 30th June, 2010 did not provide satisfactory answers to my observations.
(a) Purchase of Office Furniture In my report, referenced above, I drew the attention of the Head of Secretariat that the furniture delivered by the supplier LUCKY’S ARK INVESTMENT was not the true reflection of the furniture described by the invoice No.

001 and delivery note 005, dated 6th February 2009 because it did not possess certain additional features as reflected in the invoice.

The furniture purchased valued at E229, 600.00 was paid through voucher No.

011086.
The items were as follows: Quantity Description 2 2 2 2 4 Executive classic Egyptian import desk model of Saligna and trimmed with an elephant skin of top classic Egyptian Executive imported cabinet made of saligna and trimmed with some glasses Imported single fridge special for offices and hotels made of steel appearance Classic lunar high back chair dark and maroon imported type Classic imported duke visitor’s arm chairs maroon in colour Unit Price (E) 52,000.00 Total Price (E) Comments 104,000.00 Desk delivered no elephant skin on top 35,000.00 70,000.00 Furniture delivered not trimmed with glasses 8,900.00 17,800.00 Fridge delivered is white in colour and has no steel appearance 9,900.00 19,800.00 Not as described in the invoice 4,500.00 18,000.00 Not as described in the Total E229,600.00 invoice Revised Stores Regulation Part I of 1975 chapter 6 No.
41 (3) states that; when stores are received the receiving officer shall inspect the goods for quality compliance and shall ensure that the goods are not differing in form or material from the requirement of contract.

This regulation was violated.

Page 211 The Head of Secretariat in his reply referenced EBC/36 dated 30th June, 2010 stated that the Storeman arrived on Monday the following week after the furniture was delivered, he was handed over the delivery note and the furniture.
The Storeman informed the Head of Secretariat that he did not notice that there were some missing items on the furniture, he thought all was well.

The Controlling Officer did not prove beyond doubt the cost remained the same, despite that it did not comply with the description.

My understanding is that logically the furniture without these features should have been cheaper since the quality can not the same as the items with the additional features.
(b) Purchase of Mobile Telephone The Elections and Boundaries Commission purchased a mobile telephone at E2 321.00 in favour of the Deputy Chairman, using an irrelevant authority, ES 36/44, dated 29th June 2009.

The authority, quoted above, was granted by the Ministry of Public Service, as per request of the Commission to reimburse the Mobile Telecommunications Network (MTN) an amount of E221 749.15.
This amount was in respect of the usage of the MTN facility by the EBC officials including the Deputy Chairman and other government employees during the registration exercise, primary and secondary national elections of 2008.

In his reply the Controlling Officer concurred with my finding and confirmed that his office erroneously sought wrong authority to buy the mobile phone.
I am discontent with this assertion because the authority, quoted above, states it clearly, that the authorisation was to enable the Commission to reimburse airtime consumed by EBC for elections exercise.

Therefore the purchase of a mobile phone was a clear diversion of funds and thus it was unauthorised.

Financial accounting instruction of 1970 number 0202(iii) states that controlling officers must ensure that public moneys are spent only for the purpose for which they are authorised.
The Head of Secretariat in his reply referenced EBC/36 dated 30th June, 2010 stated that his office erroneously sought authority to purchase airtime for the Deputy Chairman instead of authority to purchase a mobile phone.

Page 212 HEAD: 45 MINISTRY OF HEALTH Objectives: To improve and preserve the state of health of the citizens of Swaziland and also provide relief, emergency and social services.

32.0 AUDIT INSPECTION – MANKAYANE GOVERNMENT HOSPITAL.
An audit inspection report dated 28th September 2009; referenced M4/Vol.

VIII/145 was issued to the Principal Secretary, Ministry of Health.

The Controlling officer did not respond to the concerns raised.
(a) Salary Received Whilst on Secondment In my memorandum referenced above, I reported that an officer, employment number 4945295, who was employed as a nurse in the Mankayane Government hospital continued to receive salary totaling E91 244.66, from April 2006 until March 2007 yet she was on secondment as a Regional T.B.

Coordinator at the National T.B.

Control Programme Unit during this period.
The salaries earned are as follows:- Monthly Salary Overpayments Date 20/04/2006 22/05/2006 22/06/2006 21/07/2006 22/08/2006 22/09/2006 23/10/2006 22/11/2006 15/12/2006 15/01/2007 23/02/2007 23/03/2007 Grade C5 C5 C5 C5 C5 C5 C5 C5 C5 C5 C5 C5 Notch 5 5 5 5 5 5 5 5 5 5 5 5 Total Amount (E) 7 447.08 7 447.08 7 447.08 7 447.08 7 447.08 7 447.08 7 558.75 7 558.75 7 861.17 7 861.17 7 861.17 7 861.17 91 244.66 According to paragraph 2 of the terms of secondment letter, referenced CSB/21403 and dated 5th September 2006, the officer was to be paid salary by the National Emergency Response Council for HIV and AIDS, NERCHA, for the duration of the secondment.
Therefore the officer was not entitled to earn salary from government while being paid by NERCHA as well.

Page 213 This is double payment and should be recovered and credited back to the Consolidated fund.

In his reply, referenced MH/208, dated 10th November 2011, the Controlling Officer informed me that the officer has been called to discuss this matter and I would be updated in due course.

Therefore, no corrective action has been taken at the time of writing this report.
32.1 Over Expenditure on Project H33699 – Rehabilitation of Mbabane Government Hospital Over expenditure in excess of budget provision and released funds is illegal in that it distorts the fiscal budget of a country.

This is further supported by Financial and Accounting Instruction 0202(ii).

However the Ministry violated the standing regulations and allowed over expenditure without authority.

An amount of E94 000 000 was approved but only E4 100 650.00 was released for the implementation of the project.
Actual expenditure amounted to E7 686 951.00 resulting in over expenditure of E3 586 301.40 (87%) (E4 100 650.00 – E7 686 951.00).

The Controlling Officer is expected to explain the authority which allowed him to spend beyond the budget provision and released funds.
The Controlling Officer did not respond and thus violated Financial and Accounting Instruction which states that “It is the duty of the Accounting Officers to reply promptly to any queries addressed to them by the Auditor General giving fully the particulars of information desired”.

32.2 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) Over Expenditure (%) 45 45 CTA Vehicle Charges (11) Personnel Costs 13,830,602.00 15,926,795.74 2,096,193.74 24,704,752.00 28,951,491.36 4,246,739.36 15 17 Page 214 45 45 45 45 45 45 45 45 45 45 (11) CTA Vehicle Charges (12) CTA Vehicle Charges (32) CTA Vehicle Charges (41 Personnel Costs (41) CTA Vehicle Charges (42) CTA Vehicle Charges (43) CTA Vehicle Charges (44) Personnel Costs (44) CTA Vehicle Charges (45) CTA Vehicle Charges It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
The Controlling Officer did not respond and thus violated Financial and Accounting Instruction which states that “It is the duty of the Accounting Officers to reply promptly to any queries addressed to them by the Auditor General giving fully the particulars of information desired”.
Page 215 HEAD: 46 MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS Objectives: Administration of Justice through the various courts; the drafting of new legislation and amendments to existing laws and registration of companies, property rights and vital statistics.

33.0 UNAUTHORISED OVER EXPENDITURE ON RECURRENT VOTE Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) Over Expenditure (%) 46 46 46 CTA Vehicle Charges (11) CTA Vehicle Charges (21) Consumable Materials Supplies and 928,612.00 1,493,221.56 564,609.56 361,506.00 931,372.28 569,866.28 2,178.00 2,800.06 622.06 61 158 29 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
The response, by the Controlling Officer, referenced JUS 1438, dated 30th November 2011, indicated that generally, the over expenditure was caused by release of insufficient funds.

Further in all the activity centres there were also unforeseen activities that were carried out, which increased the over expenditure.

However the Controlling Officer did not produce any authority allowing him to over spend.
Page 216 HEAD 48: JUDICIARY Objectives: - To provide administration and timely delivery of justice to all the people of Swaziland 34.0 AUDIT INSPECTION: JUDICIARY An audit inspection was carried out at Judiciary and a report referenced J2.14 dated 19th July 2010 was issued to the Registrar of Supreme Court.

The Registrar of the Supreme Court in her unreferenced reply dated 26th August 2010 did not respond satisfactory to the following observations.
Out of the E1 047 888.38 unaccounted for stores only items worth E478 419.08 were traced and recorded leaving E569 469.30 items, which are listed below, untraceable.

(a) Items Not Accounted For In my report quoted above I drew the attention of the Registrar of The Supreme Court, that supplies worth E1 047 888.38 purchased during the financial years 2008/2009 and 2009/2010 were not accounted for.

They were neither recorded nor physically available for verification.
Amongst the items purchased were building material valued at E1 294.20 which I could not ascertain relevance of the Judiciary Department because the construction works responsibility lies with the Ministry of Public Works and Transport.

Building Material Voucher No.
060998 060998 060998 Order No SG 905828 SG 905828 SG 905828 Sub- total Payee Item Quantity Unit Total (E) Lunkanka Investment Lunkanka Investment Lunkanka Investment 1kg nails 75 x 3.55mm 1kg nailspanel pins 40 x 1.6 CB nails plugs 61mm x 70mm 4 2 30 Price (E) 15.95 63.80 60.95 121.90 36.95 1,108.50 E1,294.20 The materials were purchased at the instruction of the Ministry of Public Works which advised the Judiciary that it did not have sufficient funds to carry out the maintenance works required by the Judiciary.
Page 217 However, it was irregular for the Judiciary to purchase these materials without authority.

The unaccounted for items were:- Order No Voucher No.
Payee Item Description Quantity In Order 10 916778 129983 SGL Technologies 916778 129983 SGL Technologies 905778 05824 Real Import & Export 905749 050823 Nhloko Investments 905749 050823 905749 050823 907426 120922 904485 070192 905855 050590 Nhloko Investments Nhloko Investments Hoageys Rapid Stationery Zaza Investments 914733 120383 SGL Technologies 36 1 High Level 166 GHZ Intel Centrino Laptops Entry Level 1.66 GHZ Intel Dual Core Laptops Olympia Digital Audio Recorder Executive Desk And Modesty Panel 233 x 1100 x 760mm 3 Drawer Height Pedestral L-Extension 2 2 2 2 10 7 2 Bar Pad Fan 40cm 3 Heaters 4 Drawer Steel Filing Cabinet Black and White Laserjet Printers Not Seen Seen Unit Price (E) Total (E) 10 Nil 14 800.00 148 000.00 36 Nil 10 200.00 367 200.00 1 Nil 2 850.00 2 850.00 1 1 9 751.00 19 502.00 1 1 2 6 3 1 1 1 Nil 4 4 1 6 433.00 3 088.00 312.65 500.00 1 800.00 5 650.00 12 866.00 6 176.00 625.30 3 000.00 3 600.00 5 650.00 Total E569 469.30 (b) Purchase of 46 Laptops The Controlling Officer confirmed the purchase but explained that only 36 laptops were distributed to the Judiciary staff because 10 laptops were stolen.
Page 218 (c) Action Taken About the Theft A losses report was prepared and the police duly informed but the Ministry was still awaiting a progress report.

The Attorney General was also alerted.

(d) Unrecorded Items The Controlling Officers acknowledged the over sight in not recording the queried items.

She informed me that all the items had since been correctly listed and recorded in the ledger folios as per government Regulations, and invited my office for a re audit to confirm this.
In my view, the above scenario, non recording of items worth more than one million Emalangeni, indicated clear lack of accountability by the Controlling Officer.

Government Regulations call for prompt recording of items.

As a result of the laxity attractive items were lost without trace, yet Regulations state is succindly, the duty of the Controlling Officer is to ensure that the attractive items are fully safe guarded.
34.1 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.

This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Head Item 48 48 Personnel Costs (11) CTA Vehicle Charges (12) Released Budget (E) 7,984,414.00 Actual/Committed Expenditure (E) Over Expenditure (E) 9,239,922.79 1,255,508.79 Over Expenditure (%) 16 762,638.00 1,523,225.60 760,587.60 100 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his response, referenced JUD/144, dated 12th December 2011, the Controlling Officer stated that the over expenditure on personnel costs and CTA charges was due to insufficient release of the budgeted funds, as a result of the cash flow crisis.

Page 219 However no authority was produced, that allowed the Ministry to over spend.
(a) For The Year Ended 31st March An examination of the above account was carried out and a report referenced A2/2010/2011/29 was issued to the Registrar of the Supreme Court and no corrective action was taken.. (b) Overdrawn Estate - The Late Tobhi G. Ndlangamandla- File no.EM189/2010 The above estate was overdrawn by E76 285.74 which was charged to the consolidated fund and thus a loss to government.
The total amount available for distribution, to four beneficiaries, was E152, 571.49 and each beneficiary was entitled to E38 142.87.
However, records revealed that the overall amount distributed to the beneficiaries was E228, 857.22 as follows:- Table depicting actual distribution Payee (Beneficiary) Requisition date 25-10-10 10-12-10 Khayalethu Ndlangamangla Khayalethu Ndlangamandla Titselo Ndlangamandla Titselo Ndlangamandla Tikhontele Ndlangamandla 05-10-10 10-12-10 05-10-10 10-12-10 Mliba Ndlangamandla TOTAL Voucher # Cheque # Amount (E) Issue date 08709 100941 656165 672442 38,142.87 38,142.87 09-12-10 14-01-11 08710 100940 080711 100939 656166 672441 656167 672440 38,142.87 38.142.87 38,142.87 38,142.87 E228,857.22 09-12-10 14-01-11 09-12-10 14-01-11 I noted that two of the deceased’s beneficiaries Khayalethu Ndlangamandla and Titselo Ndlangamandla were paid twice.
Their inheritance of E38142.87 each, resulted in the overdrawn amount of E76, 285.74, borne by government.

The first payment was made on the 9th December 2010 and the second payment was made on the 14th January 2011.
The details are:- Khayalethu Ndlangamandla DATE 9-12-10 CHEQUE 656165 Page 220 AMOUNT (E) 38 142.87 14-01-11 672442 Titselo Ndlangamandla DATE 9-12-10 14-01-11 CHEQUE 656166 672441 38 142.87 E76 285.74 AMOUNT (E) 38 142.87 38 142.87 E76 285.74 I am not aware of any refund being made to the consolidated fund.
In her reply referenced J2/9 dated 15th December 2011, the Controlling Officer notified me that the beneficiaries acknowledged the double payment and requested her to recover the money from their father’s estate, which had insufficient funds.

They eventually requested her to deduct the difference from their siblings account.

At the time of writing this report there was no evidence that the money had been recovered.
(c) Liquidation and Administration Fees – Estate, the Late Humphrey Bathathe Dladla An overpayment of E10 500.00 occurred to the Attorney, Mbuso Simelane and Associates in respect of the estate administration fees.

The Liquidation fees and Administration fees due to the Attorneys were E15 000.00 and E10,500.00, respectively, totaling E25,500.00.
However, actual payment, as per records revealed that a total amount of E36, 000.00 was paid as follows:- DATE CHEQUE 02-02-2010 02-09-2010 TOTAL 589734 622946 AMOUNT (E) 25,500.00 10,500.00 E36,000.00 PAYEE Mbuso Simelane & Associates Mbuso Simelane & Associates In view of the above, the latter payment of E10,500.00 by cheque 622946 was a duplication of payment because the first payment on cheque 589734 included the same amount, in respect of the estate administration fees.
As a result the amount of E10, 500.00 was charged to the government general account and thus a loss to government.

I am not aware of any action taken to rectify this anomaly.

Page 221 In his reply, the Controlling Officer disagreed with the over payment of E10 500.00 stating that this amount was in respect of motor vehicle valuations.

However, in the distribution account, examined by me there was no disclosure of any movable properties and therefore such provision was irrelevant.
Further, there was no documentary proof for this assertion.

Page 222 HEAD: 49 DEPARTMENT OF CORRECTIONAL SERVICES Objectives: Operation of the Penal System Courts and to prepare inmates for their return as useful citizens in the community.
To administer sentences imposed by the - 35.0 UNDER EXPENDITURE ON PROJECT P 31599-REHABILITATION OF PRISONS Under expenditure are as serious as over expenditures in that if funds are locked up and not utilized for the needed request, retards development and economic growth.

I therefore consider under expenditure of 10 % and above on capital projects in a year as not conducive to the development of a country.
An amount of E24 000 000.00 was approved but only E812 250.00 was released for the rehabilitation of Correctional Institutions: Juvenile, Matsapha, Mbabane and Big-Bend.

Actual expenditure amounted to E684 222.50 resulting in an under expenditure of (E812 250.00 – E684 222) E128 027.50 (15.7 %).

The Ministry is expected to explain the status of the project and further justify the savings.
The Controlling Officer concurred with my observation citing the reasons of the under expenditure to have been a consequence of the financial crisis experienced by government and that warrants were released for projects implementation but Treasury stated that there were no funds.

35.1 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202(ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Page 223 HD ITEM 49 49 49 49 49 CTA vehicles charges (II) Personnel costs (II) Drugs (II) CTA vehicle charges (12) CTA vehicle charges (13) RELEASED BUDGET (E) 3,034,869.00 ACTUAL COMMITED EXPENDITURE (E) 7,568,400.56 OVER EXPENDITURE 4,533,531.56 36,085,220.00 40,021,430.89 3,936,210.89 6,092.00 7,894,933.00 8,519.45 14,431,215.66 2,427.45 6,536,282.66 774,111.00 1,296,404.13 522,293.13 OVER EXPENDITURE (%) 149 11 40 83 67 It is expected that the Ministry explains the authority allowing it to spend beyond budget provision and Parliament appropriation Act.
In his reply the Controlling Officer the factors that caused the over expenditure to have been:- (a) C.T.A.

Vehicle Charges – 1100 There was a reduction from E27 736 509.00 to E18 402 574.00 yet there was expansion in their operation.

(b) Personnel Costs – 1100 The over expenditure was a result of the 4.5% increase of salaries as per Circular number 4 of 2010/11 and there was no approval of the supplementary budget.
(c) Drugs – 1100 The department experienced a diarrhea out break in inmates in Big Bend Correctional Services and they had to buy more drugs as an emergency.

(d) C.T.A.

Charges – 1200 The over expenditure was caused by the same reason under activity 1100 but the bulk of expenditure is incurred while conveying inmates to various courts.

(e) C.T.A.
(e) C.T.A.

Charges - 1300 Again the reason is the same as in activity 1100 and that in addition to the activities of the Institution, Cultural Activities are located in this Institution.

However, with due regard to the various reasons cited for the over expenditure there was no indication towards adherence to Government Regulations to obtain authority to spend beyond the released funds.
Page 224 HEAD: 50 MINISTRY OF HOME AFFAIRS Objectives: To provide relief, emergency and social services and provide sporting and recreational activities.

Administration of legislation pertaining to immigration, citizenship and refugees.

36.0 UNAUTHORISED OVER EXPENDITURE ON RECURRENT VOTE Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202(ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
HD ITEM RELEASED BUDGET (E) 50 50 50 50 50 50 50 CTA vehicles charges (11) Personnel costs (12) CTA vehicle charges (31) Personnel costs (31) CTA vehicle charges (32) CTA vehicle charges (35) CTA vehicle charges (36) ACTUAL COMMITED EXPENDITURE (E) 9,186,473.05 3,903,215.36 1,958,999.17 15,099,700.49 1,108,931.19 4,344,020.00 3,278,436.00 925,388.00 12,188,888.00 488,108.00 23,412.00 26,628.00 - 4,516.66 OVER EXPENDITURE OVER EXPENDITURE (%) 4,842,453.05 624,779.36 1,033,611.17 2,910,812.49 620,823.19 3,216.00 4,516.66 111 19 112 24 127 14 100 It is expected that the Ministry explains the authority allowing it to spend beyond budget provision and Parliament appropriation Act.
The Controlling Officer did not respond and thus violated Financial and Accounting Instruction no.

0315 (ii) which states that “it is the duty of the Accounting Officers to reply promptly to any queries addressed to them by the Auditor General giving fully the particularly of information desired” 36.1 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following Page 225 over expenditure.

Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) 50 Personnel Costs (91) - 47,223.22 47,223.22 Over Expenditure (%) 100 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
The Controlling Officer did not respond and thus violated Financial and Accounting Instruction no.
0315 (ii) which states that “it is the duty of the Accounting Officers to reply promptly to any queries addressed to them by the Auditor General giving fully the particularly of information desired” Purchase of Swazi Flag Blankets for the Celebration of the Country’s Thirty Fifth Year of Independence An Audit of the procurement of the Swazi Flag Blankets was carried out at the Ministry of Home Affairs on the 12th October 2011.

A report referenced H.22.


Vol.V dated 14th November 2011 was issued to the Principal Secretary, Ministry of Home Affairs.

The Principal Secretary in his initial reply ref.

HA/083 VOL 111 dated 8th December 2011 stated that he would inform my office, in due course, on the next line of action regarding the transaction.

The response was not satisfactory since corrective action was not taken.
In my report quoted above, I communicated to the Principal Secretary that three thousand units of Bella 150 x 200 Swazi Flag Blankets valued one million three hundred and fifty Emalangeni (E1, 350 000.00) were purchased and delivered at the ministry.

However, there were no records kept by the ministry in relation to the purchase, delivery and distribution of the whole consignments of the blankets.

As a result the Ministry did not account for the blankets.
Out of 3000 Swazi Flag blankets, 1231 blankets valued E555 950-00 were kept at Government stores without the necessary documents for record purposes.

The storage was discovered to be unsuitable because fourteen (14) of them worth E6 300-00 had been damaged and soiled by rats and most of the packaging boxes had been damaged resulting in their exposure to dust and rats.
On the same purchase, the whereabouts of 1769 blankets amounting to E769 000- 00 could not be ascertained as pointed out earlier on, that the whole consignment was not recorded anywhere.

Page 226 Although the Stores Department, in its unreferenced memorandum, dated 27th April 2011 encouraged the Ministry to make decisions on the blankets, it has not yielded any positive results.
It is evident that initially there was no purpose and need for the Ministry to purchase the blankets because they have been lying idle for seven (7) years without being put to good use.

The amount of E1 350 000-00 was a loss to government and it is translated to a waste of this scarce, precious resource.

Further, the ministry is unable to account for the whole consignment.
Due to the fact that the blankets are abandoned and rotting, the Controlling Officer is therefore not exercising his duty to safeguard the government’s assets.

As per his promise earlier on, that he would inform my office on the next line of action, the Controlling Officer in his reply, referenced HA(O83 Vol.III) dated 27th December 2011, acknowledged my concerns.
However, he did not give any explanation about the issue, except that he has requested authority from the Ministry of Finance to institute an enquiry into this matter.

Page 227 HEAD: 53 MINISTRY OF PUBLIC WORKS AND TRANSPORT Objectives: Roads Building Transport • • • To construct and maintain the country's road network.

To construct, maintain and administrate Government buildings.

To provide and maintain facilities for ensuring availability of adequate transportation.
37.0 UNDER EXPENDITURE ON PROJECT T36599 –PURCHASE OF GRADERS Under expenditures are as serious as over expenditures in that if funds are locked up and not utilized retards the development and economic growth.

I therefore consider under expenditures of 10 % and above on capital projects in a year as not conducive to the development of a country.

An amount of E50 000.000 00 was approved as budget and released for the purchase of heavy plant and equipment for road works.
Actual expenditure amounted to E39 652 208.80 resulting in an under expenditure of (E50 000 000.00 – E39 652 208.80) E10 347 791.20 20.6% The Ministry is expected to explain the status of the project and further justify whether the savings are genuine.
The Controlling Officer did not respond to my observation and thus violated Financial and Accounting Instruction 0315 (ii) which states that “it is the duty of all Accounting Officers to reply promptly to any queries addressed to them by the Auditor General, giving fully the particulars or information desired”.

37.1 Unauthorised Over Expenditure on Recurrent Vote Over expenditure beyond budget provision and appropriated funds by Parliament are illegal in that it disturbs the fiscal budget of any Ministry.
This is further supported by Financial and Accounting Instruction 0202 (ii).

However, the Ministry violated the Government standing regulations and allowed the occurrence of the following over expenditure.
Page 228 Head Item Released Budget (E) Actual/Committed Expenditure (E) Over Expenditure (E) 53 53 CTA Vehicle Charges (21) CTA Vehicle Charges (44) 13,977,866.00 36,882,453.18 22,904,587.18 944,862.00 1,924,178.30 979,316.30 104 Over Expenditure (%) 164 It is expected that the Ministry explains the authority that allowed it to spend beyond budget provision and Parliament Appropriation Act.
In his reply, referenced RTD E1,18, the Controlling Officer stated that amongst the duties he undertakes there were those which require extensive traveling all over the country, such as • Tests of Learners Drivers • Road worthiness of vehicles tests • Public passenger compliance with regulations Also, the Ministry erred and budgeted for 13 vehicles instead of 25 vehicles, thus increasing the over expenditure.
The Controlling Officer did not mention any authority having been obtained to allow the Ministry to over spend.

Further, his reply clearly states that he knew that he spent beyond the budget because of the budget he submitted to the Ministry of Finance.

37.2 Audit Inspection – Project G22899- Compensation for Relocation of Property.
In my memorandum quoted above, I drew the attention of the Controlling Officer that an amount of E861,948.03 was spent by the Ministry to construct a four (4) bed roomed house to compensate Mr Gilbert Mabila, whose property (portion 155 of Farm 188 measuring 47066 hectares was falling within the security zone of the Royal Residence at Nkoyoyo.
Mr Mabila was compensated with portion 144 of Farm 1117 measuring 48312 hectares and construction of the house began in 1996/97 financial year and was completed in the financial year ended 31st March, 1999.
The expenditure is illustrated in the table below:- Financial year 1996 1997 1998 1999 Total expenditure Amount released (E) 0.00 600,000.00 500,000.00 300,000.00 Amount spent (E) 0.00 84,827.00 485,388.78 291,783.25 E861,948.03 Page 229 37.3 Occupation of the House Government through the Ministry of Public Works and Transport lost funds amounting to E861,948.03 through the construction of the house which has not been occupied for almost twelve (12) years after its completion in 1999, thus rendering it a white elephant.
Reasons for the non-occupation were not provided to my office.

Further, the Ministry did not produce the certificate of completion of the house and evidence of handing over the house keys to the prospective occupant.

During the physical verification of the house, on site, the worst than non- occupation was revealed.

The house was vandalized tremendously, rendering it no longer fit for human habitation.
The state of the house is a sorry sight and disappointing when considering that taxpayers’ money was injected into this project for nothing.

Noteworthy, the responsible Ministry of Public Works and Transport is aware of the situation since the main entrance doors have been replaced with welded corrugated iron doors, purportedly to prevent entry into the house.

The state of the damage is shown below:- Damaged items: All windows broken and one burglar bar removed to gain entry through the window.
Ceiling broken Fire place Septic tank Fence Floor tiles Stolen items: Meter box All wall wardrobe doors 5 manhole covers Jet master Conduit pipes 2 window seals All stays (window lockers) Plumbing materials including water pipes Page 230 Drawers for wall wardrobes Electric lighting fittings and bulbs Baths and toilet seats Kitchen sink All doors Geyser The Principal Secretary, Ministry of Public Works and Transport concurred with my findings and stated that there were misunderstandings that were being sorted out with Mr. G. Mabila.
He further stated that the project involved other government Ministries and departments like the Ministry of Housing and Urban Development, Ministry of Natural Resources and Energy and Department of Surveyor General.

His Ministry was only instructed to construct the house.
The reply is not convincing since it does not resolve the matter at hand because the amount spent on the project, which is tantamount to loss could have been used for other projects which could have been to the best interest of the public at large.

Further rehabilitating the house will also be too costly for government.

I am disgruntled that over a period of 12 years no solution has come forth about this issue.
Page 231 PART C APPENDICES Page 232 APPENDIX 1 CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES AS AT 31 MARCH 2011 Assets (E) Consolidated Fund (E) Trust Fund (E) Consolidated Fund (E) Bank Accounts Cash Accounts Employee Advances Ministry and Departmental Advances Other Advances Sundry Investments Investments Treasury Bills -2,361,436,681.59 3,817,280,332.38 173,515,096.83 133,242,732.76 -6,059,624.37 858,158,497.18 -12,547,219.15 72,087,805.30 -2,361,436,681.59 3,817,280,332.38 173,515,096.83 133,242,732.76 -6,059,624.37 858,158,497.18 -12,547,219.15 72,087,805.30 Fairview Township (52103) Prison Officers Reward Fund (52112) Ngwane Park Township (52116) Disaster Relief Fund (52124) Sibhimbi Fund (52125) Water Relief Fund (52127) Strategic Oil Reserve (52157) 64,979.02 21,733.50 168,631.82 -814,574.06 1,031,759.32 489,366.23 260,920,215.83 Total Assets 2,674,240,939.34 261,882,111.66 2,674,240,939.34 LIABILITIES Capital Funds Capital Funds – Other Accounts Payable Sundry Deposits Customs -111,003,269.90 21,859,951.43 436,334,830.65 -173,247,942.47 104,552,593.71 -111,003,269.90 21,859,951.43 436,334,830.65 -173,247,942.47 104,552,593.71 Page 233 Special Fund Accrue Liabilties and Deductions Reserves Treasury Bills Government Stock Consolidated Fund Trading Accounts - Sundry 764,568,477.60 -321,750,227.47 575,706,332.63 239,528,953.50 436,777,919.52 769,646,850.52 -68,733,530.38 764,568,477.60 -321,750,227.47 575,706,332.63 239,528,953.50 436,777,919.52 769,646,850.52 -68,733,530.38 2,674,240,939.34 261,882,111.66 2,674,240,939.34 Public debt as at 31 March 2011amounted to E2,543,348,000.80 Contingent Liabilties as at 31st March 2011 amounted to E1,288,530,046.96 THE STATEMENT DOES NOT REFLECT THE FOLLOWING INVESTMENTS HELD BY THE SWAZILAND GOVERNMENT 1.
160 Shares of one Lilangeni in AON Swaziland Insurance Brokers LTD. 2.

5 506 234 Shares of fifty cents in Nedbank.

3.

3 651 187 Shares of one Lilangeni each in Standard Bank.

4.

6 262 511 Shares of one Lilangeni each in Royal Swd.

Sugar Corporation.

5.

2 401 Shares of one Lilangeni each in S.E.D.C.O.

6.

600 000 Shares of one Lilangeni each in Swazi Can.

7.

615 000 Shares of one Lilangeni each in S.R.I.C.

8.

7 580 000 class "A" Shares of one Lilangeni each in S.I.D.C.
845 000 class "B" Shares of one Lilangeni each in S.I.D.

C. 9.

54 861 000 Shares of one Lilangeni each in Swazi Bank.

10.

220 Shares of $1000 each in International 11.

18 Shares of $10 000 each in A.D.B.

12.

132 Subscription shares of $1 000 each in the International Bank For Reconstruction and Development.

13.

750 Shares of one Lilangeni each in R.S.N.A.C.

14.

320 Subscription shares of $1000 each in International Development Association.
Page 234 NOTES TO THE STATEMENT OF ASSETS AND LIABILITIES.

1.

The Credit Capital Funds Figure reflect amounts receivable to Government from Donor Agencies.

2.

The Credit amount shown under liabilities for Sundry Deposit results from the accumulation of several years losses of the C.T.A.

3.

There is a deliberate double accounting on the Trust Funds on both Assets and Liabilities sections of the balance sheet to ensure disclosure of them while they are under trustship of Government.

4.
4.

Equity for Trust Funds is E262,709,586.06 and is included in the Sundry Investments under Assets.

This figure has been affected by some anomalies which will be made good next financial year.

5.
The trading account figure is a debit balance of E68,733,530.38 this financial year, yet last financial year 2009/10 it was E 23,315,386.15 This difference owes to several trading accounts which have made savings, these include ; Matsapha industrial estate, Statutes Revision Manyonyaneni beef ranch, Tractor Hire,etc Page 235 SURPLUS AND DEFICIT ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011 APPENDIX 5 Receipts Local Funds Receipts in the form of direct payments Balance overdrawn as at 31/03/201 0 65,142,918.44 1,814,915,191.92 819,026.97 1,880,877,137.33 171,555,501.28 CAPITAL FUND Overdrawn balance brought forward 1/4/2011 Expenditure by way of direct payment Capital Expenditure 193,579,133.08 819,026.97 1,897,956,180.45 2,092,354,340.50 2,052,432,638.61 2,052,432,638.61 CONSOLIDATED FUND Balance as at 31/03/2010 Revenue 3,395,966,704.32 7,237,946,337.09 Recurrent Expenditure Local Fund Contribution to Capital Surplus as at 31/03/2011 8,049,350,998.97 1,814,915,191.92 769,646,850.52 10,633,913,041.41 10,633,913,041.41 Page 236 APPENDIX 10 STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 31ST MARCH 2011 CAPITAL FUND BALANCE IN HAND as at 1st April 2010 BALANCE OVERDRAWN as at 1st April 2010 Dvokolwako Rural Water S.D.
ANS S. Bank Loan Enhlambeni Water Supply MOAG Information System MOAG Fish Survey 34,238.18 3,551,100.00 2,329,152.32 364,750.95 167,329.86 Taiwanese Constitutional Grant Japanese Constitutional Grant ADB Loan Mbabane Ngwenya Road Rehab Chinise Piggery Grant Matsapha Dry Port Feeder Roads & Rehab.
Of Armcos & Calverts 6,510,578.63 Taiwan-Grant Land Rehab Rural electrification 111 (Taiwan) Purchase of Computers- Economic Planning National livestock identification 1,802,071.06 3,892,578.65 262,622.24 Taiwan-Grant Development Programme World Bank Grant Taiwan-Grant Communication Network Promotion of community based food processing 240,144.68 Siteki-Mhlumeni Road (Taiwan) Water supply to schools VI 803,429.72 Lobamba Medical Equipment Ngwenya Mbabane Road Rehab (Taiwan Grant) 5,143,618.42 Search Camera for Police (Taiwan) Replacement Of Transmission & Anciillary Equip.
270,806.08 Control of Alien Spicies (Taiwan) Comprehensive Fish Survey M.O.A.G-(Taiwan) 142,088.51 World Bank Loan: Urban Dev.
Project 973,094.56 3,406,554.02 2,045,000.00 232,352.18 19,421,125.44 3,566,958.95 905,258.68 436,910.48 1,000,000.00 2,584,628.82 53,990.46 508,027.43 2,878,202.21 8,358,946.41 Operation Equipment for CMAC 138,691.23 Taiwan - Grant Siteki Mhlumeni Road Upgrading 11,055,227.80 Distance & Continuing Education Programme 4,278.53 Taiwan - Grant Lomahasha Water Supply 11,658,535.93 Medical Equip.

& Furniture for TB Hos.

& Newly B.


1,581,606.03 Construction of a post entry plant quarantine 449,346.78 Luyengo Sicunusa Road upgrading-Taiwan grant 2,577,243.92 Rural Water Supply-Denmark Grant Rural Settlement Rural Financial Review - MOAG I.B.R.D.

3RD Loan Edu Project I.B.R.D.


Loan No.1058 Water Supply Computerisation of Customs Data 11 Replacement of medical equipment 18,441,159.91 307,769.02 904,301.19 309,868.38 5,045,532.25 229,757.25 Mining Policy-(Taiwan Grant) Capital Investment Fund Purchase of Clinical Equip.

for Correctional Rehab.


Of Rice Production Fields National Elections Feasibility study on strategic fuel depot 37,945,861.96 3,372,997.46 20,993,267.88 90,000.00 92,863.18 3,136,675.04 1,186,208.89 Page 237 Establishment of science & Tech.

park (taiwan g) 429,125.15 Expansion of Matsapha Dryport (taiwan) Computerisation of income tax mngt syst R.S.A Nsoko-Lavumisa High School Equipment AID 4,611,483.89 14,405.57 2,458,240.00 E.D.F.

Miscellaneous Grants IFAD Small Holders Agric.


Project Computerisation of trading licences mangt syst 820,197.58 Training Centre Rural water supply ii ( Taiwan - grant) Mlawula Nature Reserve Upgrading SWD National Herbarium Botanical Garden Mnjoli Dam (K F W) Loan 36,007,560.35 1,249,647.40 5,957,216.90 4,430,751.69 Pre-Vocational Education Facilities Small Holder Credit Marketng (I.F.A.D.)
Micro-Project - Small Scale (Japanese) Mliba/Mafutseni Road Recording & Security Equip 4 High & Ind courts 643,014.00 Farm Machinery 939,858.44 1,267,693.60 3,167,932.68 1,961,927.20 363,727.00 859,189.86 19,906,800.00 453,845.54 504,027.87 Upgrading of Malolotja Nature Reserve(Taiwan) 4,897,652.07 King Sobhuza ii Memoral Park 805,000.00 Metreological Observing Equip.-Matsapha-Sikh.
153,262.47 New international Airport- Millenium Project(Taiwan 13,654,565.10 Poverty Alleviation Soil Testing & Chemistry Lab.

85,965.34 3,570,849.99 Komati Basin Project-Downstream Dev.

(A.D.B.)

17,819,000.00 Fuel Marking and quality assurance Ethanol Blending E.D.F Manzini Mbabane Road Section iii A.D.B.

Maphiveni Bridge Micro-project small scale v ( Stanbex-Grant) A.D.B.
Loan Manzini Mbabane Road 4,911,011.84 712,788.14 990,200.07 5,209,649.58 2,093,000.00 500,000.00 A.D.B Loan Institutional Support Roads Branch 2,488,742.62 Replacement of drilling rigs 3,025,901.00 Lower Usuthu Project- Down Stream Development 105,703,789.57 Receipts during the year Local Funds Solar school lamp Establisment of technology park ( bio tech) Establisment of technology park ( bio tech) Establisment of technology park ( bio tech) 126,135,924.64 Farmers bussiness Provision of equipment for hospitals 1,814,915,191.92 Local Funds Payments made during the year Fuel marking and quality assurance Ethanol blending 43,400,000.00 775,243.00 362,114,092.44 1,814,915,191.32 2,299,369.99 68,829.00 Establishment of Science and Technology Park 18,797,310.00 Construction link road skhuphe 21,912,000.00 2,099,760.00 8,352,000.00 2,062,526.40 1,044,000.00 Page 238 Computers fo Govt ministries Rural electirfication Equipment for portable supply water scheme Equipment for state security (police) 2,193,609.00 20,880,000.00 8,447,250.00 3,169,273.04 Procurement of ICU & rural clinic equip RFM 16,894,500.00 Capital balances cleared 142,872,949.72 2,022,931,060.08 Capital balances cleared 39,963,481.30 1,897,956,181.61 Estimated Direct Receipts 819,026.97 Estimated Direct Payments 819,026.97 BALANCE OVERDRAWN as at 31 March 2011 BALANCE IN HAND as at 31st March 2011 New international Airport- Millenium Project(Taiwan 21,912,000.00 Solar School lamp 2,099,760.00 Rural water supply- Denmark grant 37,945,861.96 Equipment for portable supply of water schemes 8,447,250.00 Mining Policy - Natural Resources Taiwan Grant 3,372,997.46 Equipment for State Security- Police service 3,169,273.04 Capital Investment fund 20,993,267.88 Procurement of ICU - rural clinic equipment RFM 16,894,500.00 Purchase of clinical equipment for correctional 90,000.00 Purchase of computers for govt ministries Rehabilitaiton of rice production fields National elections Feasibility study on strategic fuel Depot 92,863.18 3,136,675.04 1,186,208.89 Water supply to schools VI Replacement of Transmission&ancillary equipment 270,806.08 Comprehensive Fish survey- MOAG Taiwan Grant 142,088.51 Expansion of Matsapha dry port- Taiwan grant 939,858.44 Operation Equipment for CMAC 2,193,609.00 803,429.72 138,691.23 4,278.53 - 2,577,243.92 18,441,159.91 307,769.02 904,301.19 309,868.38 5,045,532.25 229,757.25 Distance & continuing education programme Medical equipment & furniture for TB hos Luyengo Sicunusa road upgrading- taiwan Rural Settlement - taiwan grant Rural Financial Review- MOAC Taiwan IBRD 3RD loan education programme IBRD Loan no.
1058 water supply Computerisation of Customs data ii Replacement of medical equipment Establishment of Science and technology park - EDF miscellaneous grants Upgrading of Malolotja nature reserve Lower Usuthu - down stream project Ifad small holders Agric.
Dev Replacement of drilling rigs Training centre Farmers Business Pre- vocational education facilities Provision of equipment for hospitals Small holder credit marketing IFAD 1,267,693.60 4,897,652.07 32,365,000.00 3,167,932.68 3,025,901.00 1,961,927.20 43,400,000.00 363,727.00 775,243.00 859,189.86 Page 239 Komati basin project -down stream development 17,819,000.00 Mlawula Nature Reserve upgrading Micro project - small scale Mliba/Mafutseni road Farm machinery Metreological observing equipment Poverty Alleviation study Soil testing & chemistry laboratory 19,906,800.00 453,845.54 504,027.87 153,262.47 85,965.34 3,570,849.99 Fuel Marking and quality Assurance Ethanol blending E.D.F.
Manzini Mbabane road section 111 ADB Maphiveni bridge Micro- project small scale (stanbex- grant) ADB loan manzini Mbabane road ADB loan Institutional support roads branch 7,210,381.83 781,617.14 990,200.07 5,209,649.58 2,093,000.00 500,000.00 2,488,742.62 Establishment of Science Technology Park 7,338,783.60 Computerisation of Income Tax mangt system 4,611,483.89 Health services dev R.S.A.
Nsoko Lavumisa High School equipment US AID 20.00 14,405.57 2,458,240.00 Computerisation of Trading licences mngt syst 820,197.58 Rural water Supply ii Taiwan - grant Swd National Herbarium Botanical Garden Mnjoli Dam KFW loan Recording & security equip.
for high and industiral 643,014.00 King Sobhuza 11 Memorial Park Rural electrification Program iii 805,000.00 20,880,000.00 36,007,560.35 1,249,647.40 5,957,216.90 4,430,751.69 250,860,125.31 2,399,927,110.03 139,856,855.41 2,399,927,129.46 Page 240 STATEMENT OF PUBLIC DEBT FOR THE YEAR ENDED 31ST MARCH 2011 APPENDIX 11 DESIGNATION NO AUTHORITY OPENING PAYMENTS PARTICULARS OF BALANCE PRINC FX FX 000s 000s INT FX COMMI DRAWD FOREIGN CU EMALANGENI PAYMENTS FX FX 000s 000s Interrnational Dev 20 Proclamation 99.70 1.40 0.00 0.00 259.00 159.30 1,080.70 Assciation Loan US$ 3,373,186 USAID RDA`S 645/T/004A US$4,600,000 no.
9 of 1962 84 135.30 60.30 0.00 0.00 1,882.40 1,747.10 11,852.00 Capital and interest repayable in 28 ann- ities commenced on 1st Jan 1980 Interest repayment commenced on the 1983-2019 20th October 1983 USAID LOAN 17 103.40 7.20 0.00 0.00 415.20 311.80 2,115.30 Capital repayment period 1982-2012 Kred tnstant l nt Loan 90 Kings Order 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayments comm- Mpaka-Siteki Improv D.M 3,000,000 KFW in Council no.12 of 1978 enced in June 1988- 2008 Kred tnstant Fur 92 Kings Order 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capita, interest Page 241 Wiepenanfbay Fairview in Council D.M 42,000,000 no.12 of 1978 repayable in 40 equal semi-annual instalm- ents commencing 1988 – 2008 E.E.C Loan Main 99 124.40 10.90 0.00 0.00 Capital, interest 1,272.00 1,147.60 11,038.10 sugar project ECU 3,500 000 USAID Loan No.
100 157.30 50.10 0.00 0.00 1,909.10 1,751.80 11,883.90 645-k-003 R.D.A`s Infratructure US$5,400,000 A,D.F Loan 102 Kings Order 161.10 22.80 0.00 0.00 4,059.20 3,898.10 42,701.70 cs/swz/tr/78/2 Mkhondo-Mahamba rd in Council no.27 ADF 8,000,000 AUA repayable in 60 half yearly instal comme- ncing in 1988 - 2018 Capital and interest repayable in 60 half instal commencing in 1988 - 2018 Capital repayable in 50 annuities of UA 40,000 commencing 1989 1989-2034 USAID Small Farmer 16 11.20 1.80 0.00 0.00 Period 1985-2015 171.90 160.70 1,090.20 Agric .518,263.
$ Wiederanfbay for Construction Hydro US$19,000,000 kfw 112 Act no.
16 of 183.50 0.00 0.00 0.00 0.00 0.00 Capital and interest 1981 183.50 Page 242 repayable in 41 half yearly instal beginning 1991 – 2012 EIB Fourth Feeder-S.E.B US$ 15,000,000 1,159.00 393.70 0.00 0.00 10,584.20 9,425.20 90,655.20 Commencing 2001 and ending 2021 UK/Swaziland Dev 117 Act No.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital payable in Loan 1982 Rural Water of 1982 p.3,000,000 GBP International Dev 518 Kings order 154.70 19.40 0.00 0.00 2,479.10 of 1975 36 consecutive semi- annual instal comm- encing 1990 - 2008 2,324.40 15,768.30 Repayments comm- enced in 1985-2024 assoia to promote educational objective US$5,000,000 BADEA TWO INTERNATIONAL US75,000,000 532.00 127.90 0.00 0.00 4,118.50 3,586.50 24,330.10 commencing Repayment comme- 2003 – 2014 A.D.B Loan cs/swz/h/ 118 84/012 for financing local cost of the Health Services A.UA 5,130,000 Act no.4 of 1984 A.D.B Loan on behalf 119 of the Nigeria Trust Fund cs/swz/4/84/11 A.UA 5,000,000 Act no.4 of 1984 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital and interest repayable in 40 equal semi-annual instalm Commencing in 1989 – 2009 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital repayable in 20 consecutive instal commencing 1989 – 2009 Page 243 Danish Loan for 133 0.00 0.00 0.00 0.00 4,130.00 4,130.00 5,319.00 constructing two bridges DKK 50,000,000 Capital repayable in 35 consecutive semi-annual instal over 18years comm 1993 -2011 Mkhondo/Mahamba 142 104.50 19.10 0.00 0.00 Repayment commences Rehabilitation AUA5,000,000 3,162.40 3,057.90 33,497.80 in 1994 Matsapha Vocational 143 85.00 10.70 0.00 0.00 1,649.90 1,564.90 15,051.80 Training Centre ECU 3,200,000 Fourth Danish Loan P&T DKK80,000,000 147 2,200.00 0.00 0.00 0.00 2,666.70 466.70 601.10 Repayment commencing in 1996- 2026 Capital and interest repayable in 36 equal bi-annual payments through 2011 A.D.B Loan Mafutse- 150 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital and interest ni/Mliba Rd AUA 6,200,000 A.D.F Loan Mafutse- 150A 89.70 18.10 0.00 0.00 2,127.80 2,038.10 22,326.40 ni/Mliba Rd AUA 3,380,000 repayable in
 32 equal bi-annual payments Commencing 1992 - 2008 Capital repayable in 80 equal bi-annual payments commenc- Page 244 EIB Loan Human 202 17.80 0.00 0.00 3,456.70 152.70 3,304.00 31,779.20 Resources dev prog ECU 5,000,000 K.F.W Hlatikhulu 203 202.40 38.80 0.00 0.00 1,021.70 819.30 7,880.40 Hospital Rehab DM 5,000,000 ing 1997 - 2037 Payments commnci- ng in 2000 - 2029 Capital and interest repayable in 60 equal bi-annual payments Commencing 1999 - 2029 A.D.B Road Rehad 200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Semi- annually com- Studies A.U.A 3,220,000 mencing in 1995-2010 A.D.B Mbabane/Mhla AUA 5,200,000 128.80 722.20 0.00 0.00 4,440.50 4,311.70 47,232.50 Semi-annually com- mencing in 1998-2038 K.F.W Matsapha Ind Park DM 17500000 444.80 68.00 0.00 0.00 5,650.20 5,205.40 50,067.60 Semi-annually com- mencing in 2000-2030 A.D.F Main Rd Rehab 158.90 35.10 0.00 0.00 Capital repayable 4,097.60 3,938.70 43,146.50 Page 245 A.U.A 5,680,000 A.D.B Transport Sect AUA 39,500,000 B/SWZTRA-SEC/92/17 IBRD Urban Develop 3807 SW $ ADF Transport Sector F/Swa/T RA-SEC/92/17 AUA 9,200,000 S A SPTC PROJ 111 E/R 37,330,000 over 40 years comm- encing in 2000 - 2040 6,240.90 9,465.70 7,391.70 10,369.40 2,627.50 480.70 0.00 0.00 Commencing 1998 - 3,613.40 39,583.00 2013 2,940.80 160.80 0.00 0.00 Commencing 2000- 6,524.90 44,263.60 2014 92.80 64.70 0.00 0.00 Commencing 2003 - 7,298.90 79,955.80 2043 4,147.80 595.20 0.00 0.00 Commencing 2003 - 6,221.60 6,221.60 2012 IFAD Small Holder 343-323sz 166.30 10.50 0.00 Commencing 1993 - SDR BADEA mbadlane Sikhuphe 319.60 153.30 1,648.60 2013 0.00 0.00 0.00 0.00 1,247.30 Commencing 2011 - 1,247.30 8,461.40 2028 KUWAIT Mbadlane 0.00 0.00 1.6 0.1 678.5 678.5 Commencing 2011 - 16,631.30 Page 246 Sikhuphe Road A.D.B -S.D.S.B Line of credit S A Loan Komati Maguga dam S A Hambros bank/ Maguga 2028 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Commencing 1996 - 2010 142,241.90 95,660.10 0.00 5,526.10 0.00 0.00 Commencing 2003 - 142,241.90 142,241.90 2012 32,573.40
 58,349.50 0.00 0.00 Commencing 1997 - 63,086.70 63,086.70 2027 ADB Two International 2,085.00 1,367.90 0.00 0.00 Commencing 2001 - Roads ICDF Two international Roads $ 12,104.10 2,797.50 10,019.10 109,754.20 2016 107.80 34.90 0.00 0.00 Commencing 2003 - 2,689.70 18,246.40 2018 ADF Education project 9211 114.80 744.10 0.00 0.00 Commencing 2004 - AUA ADB Road Network studies AUA 4,644.40 1,123.60 4,529.60 49,619.50 2034 16.30 16.50 0.00 0.00 Commencing 1998 - 1,107.30 12,129.90 2018 EIB Equity Participa- 146 308.00 12.40 0.00 0.00 Commencing 1992 - 539.20 231.20 2,223.80 Page 247 tion SIDC ECU 2011 KFW Eletricity Grid 135 58.30 6.30 0.00 0.00 Commencing 1995 - Rehab DM 227.50 169.30 1,627.90 2015 KFW Rural Health Fac- 136 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Commencing 1995 - lity DM Kuwait Two Internatio- nal Rd 3,100,000 Italian Rehabilitation East West Line ECU 1,447,179,203.00 2005 1,787.50 9,939.00 194.00 36.40 0.00 0.00 Commencing 2003 - 1,593.50 39,062.60 2018 0.00 40.10 0.00 0.00 Commencing 2027 - 9,938.10 95,588.60 2040 SA SPTC DEV 13546 4,290.40 1,504.50 0.00 0.00 Commencing 2001 - Project I SADC E/R 42,903,000 6,435.50 2,145.20 2,145.20 2011 SA SPTC DEV 13919 8,406.80 1,652.90 0.00 0.00 Commencing 2002 - Project 11 SADC Japan JBIC Northern MR5 & 6 JPY 16,813.80 4,412,000.00 Page 248 8,407.00 8,407.00 2012 10,102.00 84,834.00 0.00 0.00 Commencing 2001 - 4,401,898.00 360,950.40 2041 ADB Komati Downstream Dev Proj 577.20 299.50 14.10 3,473.90 Commencing 2008 - 11,632.20 14,528.90 159,156.80 2023 ADB Mbabane by pass road 1,390.40 0.00 Commencing 2008 - 30,471.60 2,022.70 2,827.20 28,448.90 311,643.50 project S.A. DBSA LUSIP SA.
DBSA SEB IFAD LUSIP SDR BADEA LUSIP $ ADB-NTF Komati downstream ADB LUSIP AUA EIB LUSIP (ECU) ICDF LUSIP End Period rates: E/GBP E/US$ E/AUA E/ECU 99,981.00 10,286.20 5,934.90 10,861.50 1,852.60 6,153.50 15,663.30 4,852.90 746.50 4,323.20 0.00 0.00 Commencing 2003 - Page 249 E/DM E/R E/DKK E/BF BF LOAN NOW DENOMINATED IN EUR E/SDR E/JPY E/KWD 9.6184 1.0000 1.2879 9.6184 10.7539 0.0820 245137 Page 250 STATEMENT OF CONTINGENT LIABILITIES AS AT 31ST MARCH 2011 Non-negotiable non-interest bearing notes issued in favour of the International Development Association Swaziland Development and Savings Bank deposits gauranteed in terms of Law no.4 of 1965 International Bank of Reconstruction and Development promissoy note Internation Monetary Fund Common Fund for Commodities: Promissory Note 1* Promissory Note 2* Small Scale Enterprise Loan Guarantee Scheme held with the Barclays Bank of Swaziland Swaziland Co-operative Union with SDSB Swaziland Farmer cooperation Union quaranteed with FINCOP Page 251 APPENDIX 15 255,270.30 750,584,681.00 1,461,121.96 488,044,211.00 624,971.96 2,499,873.00 40,705,355.00 302,844.00 4,051,718.74 1,288,530,046.96 STATEMENT OF WRITE OFFS OF ,LOSS OF CASH,STAMPS,STORES AND ABANDONED CLAIMS AND LOSSES DUE TO ACCIDENTS ON VEHICLES FOR THE YEAR ENDED 31ST MARCH 2011 APPENDIX 17 PARTICULARS MINISTRY/DEPARTMENT HEAD AUTHORITY AMOUNT NIL NIL NIL NIL NIL Page 252 CTA TRADING ACCOUNT AS AT 31ST MARCH 2011 Revenue income Capital income Fuel sales Repairs & maintenance Self Acc bodies Auction sale Driver Training fees Sundries Capital expenditure 2010-2011 28,347,506.92 108,696,429.59 137,043,936.51 133,545,406.60 302,399,389.00 8,116,669.09 5,588,350.00 32,017.00 464.00 71,900,143.85 658,626,376.05 Personnel emolments CTA charges Travel & Communication Professional services Rentals Consumables Durables Motor vehicles Capital expenditure 2010-2011 Surplus APPENDIX 43 26,361,905.91 13,883,666.21 1,102,129.41 87,468,920.71 50,942,844.55 188,292,215.90 3,690,812.47 71,900,143.85 108,696,429.59 552,339,068.60 106,287,307.45 658,626,376.05 SURPLUS AND DEFICIT ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2011 Deficit brought forward Less trading surplus -33,997,439.29 106,287,307.45 72,289,868.16 Surplus carried forward 72,289,868.16 72,289,868.16 Page 253 PLANT RENEWAL FUND AS AT 31ST MARCH 2011 Surplus brought forward Earnings for the year 460,601,628.73 108,696,429.59 569,298,058.32 Capital expenditure 2010-2011 Surplus for the year 71,900,143.85 497,397,914.47 569,298,058.32 Page 254