Forensic audit for SEDCO’s E11m project
MBABANE – SEDCO has issued a tender for the audit of the rehabilitation of its estates.
The Small Enterprises Development Company (SEDCO) is a ‘category A’ public enterprise under the Ministry of Commerce, Industry and Trade. Its mandate is to provide facilitative interventions to micro, small and medium-sized enterprises (MMSEs) entrepreneurial activities with the aim of contributing to national economic growth, poverty reduction and employment creation.
In the financial year 2014/15, the SEDCO estates rehabilitation project was initiated with a budget of E53 million which was released in instalments of E7 million per year. The funding for the rehabilitation was secured from the Government of Eswatini and was implemented through different companies and/or contractors. Milestones achieved through the project included the rehabilitation of the Head Office in Mbabane; construction of a new office building in the Manzini Estate; and building of a new Estate in Siteki. Others were the construction of 24 new workshops and an office in Pigg’s Peak; rehabilitation of the Sidvwashini Estate; and rehabilitation of the driveway in the Mbabane Estate,
The project effectively ran from 2014/15 to 2018/19 and was then suspended due to a missing Project Initiation
Document (PID). Efforts to locate the PID within SEDCO and relevant ministries did not yield any positive result. As it stands the project remains suspended. At the time of suspension E33 266 284.28 had already been spent and the balance of approximately E20 million was not released by government.
Pending projects include the construction of an office block and rehabilitation of existing workshops in Nhlangano; rehabilitation of existing workshops in Mbabane and Manzini; and rebuilding the entire estate.
Identified
During its audit of the rehabilitation project of SEDCO estates in 2019, the auditor general (AG) identified irregularities in the implementation of a capital project with titled M35599. Subsequently the AG tabled its report to the Parliament’s Public Accounts Committee (PAC) as the body that provides oversight on public funds with keen interest in improving economy, efficiency and effectiveness and public accountability. The PAC recommended that a forensic audit be carried out on the said project.
SEDCO has declared its commitment to improve financial management practices across the organisation, and is keen to highlight and deter instances of corruption, whether committed by management, contractor companies, individuals or employees. As such and to support continued reform efforts,
SEDCO seeks to appoint a consulting firm to undertake a forensic audit of the rehabilitation project with particular interest to the rehabilitation of the Piggs Peak SEDCO Estate phase one and two for the combined value of E11 079 695.
Experienced
SEDCO intends to engage a qualified and experienced consultancy firm to undertake the forensic audit of the SEDCO Pigg’s Peak Estate rehabilitation project phases one and two.
Interested and qualifying consulting firms are hereby invited to submit proposals to perform this task.
“The consultant must demonstrate a thorough knowledge and hands on experience, skills and expertise in conducting a project forensic audit of this magnitude as outlined in the scope of work,” reads the invitation.
The consultant shall express an independent opinion on technical performance of the rehabilitation project including whether or not funds have been used in accordance with the agreements with due attention to the economy and only for the purposes for which financing is provided.
The consultant will further provide findings, comment and recommendations on noncompliance, if any, and on internal assurance and internal control mechanisms, including management oversight, and quality assurance and internal controls that come to attention during the course of the audit in order to make recommendations for improvement; and to report on the adequacy of quality control and recommendation to improve the implementation of Capital projects.
SEDCO will provide all assistance necessary to facilitate access to relevant personnel and information as required to carry out these. Results and findings from this audit will not only enable the SEDCO to pursue action against offenders in specific cases but also identify possible weaknesses in the system of control and suggest remedial measures.
The audit will cover the period lifetime of the project that commenced (FY 2014/15) up to the very last day of the project.
Period
The contract is expected to run for a period not exceeding three months, commencing on the date of signing the contract.
“The successful bidder should be able to start immediately after appointment,” stressed SEDCO.
Tenderers are required to submit three hard copies of their proposals and a copy on a USB stick or compact disk. Proposals must be hand delivered at the SEDCO Head Office reception in Mbabane on or before 10am on Friday November 30, 2021 in sealed envelopes.
Tenders will be opened at 10:01 am on deadline day at the SEDCO Headquarters. Tenders will be opened in the presence of Tenderers’ representatives who would choose to attend. The bid price will be read out and recorded in the presence of all the tenderers or their representatives present during the opening. However, tenders may be opened even if tenderers or their representatives are not present at the scheduled time.