Armed forces rent E8m
µµThe AG, in a previous audit, warned that the rental decision was a violation of Section 401 of the Financial and Accounting Instruction, which states that “money must not be spent merely because it has been authorised by Parliament.”
MBABANE – 7he use of private vehicles by security forces during the political unrest has come at a huge cost to government. 3rincipal 6ecretary 36 in the Ministry of 3ublic :orks and 7ransport, 7hulani Mkhaliphi has revealed to the Auditor *eneral A* , 7imothy Matsebula, that an amount of E8 342 237.64 was spent in respect of renting the vehicles for the country¶s µarmed forces¶ to intervene during the unrest.
In late -une and early -uly 2021, the .ingdom of Eswatini experienced unprecedented civil unrest, that resulted in do]ens of deaths and hundreds of injuries.
7he unrest was marked by violence, looting, arson and large-scale destruction of public and private property.
OVERWHELMED
7he situation overwhelmed the police force, and the army had to come out of the barracks to assist, something that caused international uproar as the country was labeled a military 6tate.
A number of private vehicles were seen being driven around by members of the 6tate security forces in the midst of the unrest.
6ocial media captured a number of private registered companies that were used by members of the 6tate
security forces during this period.
7hese vehicles, as has now been revealed, were rented under the &entral 7ransport Administration &7A .
7his is said to have seen the ministry overspending by as much as 642 per cent on this one budget item.
7he function of the &7A is to purchase, maintain and dispose of government vehicles and other related equipment, as well as to provide fuel for government vehicles.
HIRE
It also provides vehicles on shortterm hire to government ministries and departments.
Matsebula, the A*, has questioned the value for money accrued from this expenditure, which he said was exorbitant.
Also, he said the 36 failed to provide justification for the exorbitant expenditure.
7his is information contained in the )inancial Audit 5eport on the &onsolidated *overnment Accounts of the .ingdom of Eswatini for the financial year ended March 31, 2022.
7he report was tabled in 3arliament on )riday as part of the documents accompanying the Appropriation %ill of 2023, during the budget speech that was delivered by Minister of )inance 1eal 5ijkenberg.
After being tabled, the A*¶s report will now be scrutinised by the 3ublic Accounts &ommittee 3A& where all those implicated and seen as having a case to answer will be called to account for their actions.
EXORBITANT
Matsebula said he warned the 36, who is the ministry¶s controlling officer, that they had incurred an exorbitant expenditure in respect of rentals, amounting to the E8.3 million under the &7A.
+e said this resulted in an unappropriated over-expenditure of E7 217 237.64 642 per cent , since the appropriated budget was E1. 5 million and the released budget was E1 125 000, in the fiscal year ended March 31, 2022.
7he A* said he advised the controlling officer that in all procurement activities, value for money and competitive prices should be opted in the use of public funds, and should ensure that wasteful and fruitless expenditure was avoided at all cost.
“In response, the controlling officer concurred with my audit observation and explained that the over expenditure was due to private car hire for armed forces for intervention during unrest.
“+e further disclosed that &7A has started procuring vehicles for the forces with the vehicle replacement budget and that this will drastically reduce the need for private car hire,´ Matsebula states in his report.
+e said the response of the controlling officer was noted however, evidence to this claim was not provided to him, to justify that the exorbitant expenditure for rentals was only due to private car hire for armed forces, and he did not give any value for money justification for the option to hire at such high cost.
CONCERN
7he A* noted that this was the second time in as many financial years that he is raising the same concern of exorbitant expenditure in respect of vehicles rentals in the ministry, as during the financial year ended March 31, 2021 he uncovered that an amount of E18 1 074.10 had been spent for the same purpose instead of procuring new vehicles since there was an adequate budget.
+e said he advised that the ministry should cease incurring un-appropriated expenditure and should find the best balance between µrentals spending with no properties ownership¶ and µbuying to own the properties¶ in line with the costs, benefits and risks, and consider µvalue for money¶.
“9alue for money is one of the key considerations of any decision involving the use of public funds across government, as it is supported by the µ)ive &ase¶ Model of 'ecision Making. 7he )ive &ase Model is a decision making tool used by developed governments to make informed strategic, economic, commercial, financial and management decisions,´ Matsebula said.
VALUE FOR MONEY
In terms of µvalue for money¶, the A* said, he did not think that the costs of these rentals shall be sustainable and affordable in the foreseeable future, due to the declining trend in the government¶s revenue streams, and funding may not be available to sustain the rental option.
7he A*, in the previous audit, warned that the rental decision was a violation of 6ection 401 of the )inancial and Accounting Instruction, which states that “Money must not be spent merely because it has been authorised by 3arliament. &ontrolling officers should encourage economy