Health departments owe
MANZINI – Departments under the Ministry of Health owe value-added tax (VAT) in excess of E22 million.
The Auditor eneral (A ), Timothy Matsebula, reported that according to records from Eswatini Revenue Service (ERS), the Ministry of Health (Eswatini National Blood Transfusion Service (ENBTS/SNBTS) and Eswatini Health Laboratory Service (EHLS/SHLS)) had VAT debts amounting to E22 068 884 as at March 31, 2022.
He said the VAT debts were related to tax periods dating back from 2014 to 2018, which span over a period of eight years. Matsebula said non payment of taxes due, contravened tax laws and regulations of the country.
Concerns
“I raised my concern that the country was being deprived of revenue in the form of taxes and advised the con trolling officer to settle the VAT debts and to provide proof of settlement,” he said.
It is worth noting that last year, gov ernment announced that it would write off E3 billion in tax penalties and inter ests owed by businesses and parastatals in the country. The Minister of Finance, Neal Rijkenberg, said this followed the announcement by the ERS of the Tax Debt Relief Programme.
This initiative allowed taxpayers with outstanding tax liabilities to pay the principal debt or make a payment arrangement to liquidate the principal debt.
Rijkenberg said there were a number of parastatals that would benefit from the initiative and businesses as well. He said they needed to approach the ERS and make a commitment to pay their outstanding taxes.
Meanwhile, the A reported that the Principal Secretary (PS) in the Ministry of Health, Dr Simon wane, did not provide a response to this matter.
Sanctions
In light of this, he said the ministry could be liable for institutional sanc tions as per Section 10 (1)(j) of the Public Finance Management of Act of 2017.
Also, the A reported that there were unremitted deductions of the National Provident Fund, pension and taxes. He said “I also reported that deductions in respect of National Provident Fund amounting to E1 325 718.6 , Eswatini overnment Civil Servants and Teach ers Pension amounting to E14 612.20 under the PS’s Office, were not remitted to the rightful entities.”
He further reported that taxes amount ing to E6 3 7.43 were also not remit ted as of March 31, 2022. This, he said, was in contravention of Financial and Accounting Instruction 0817 which requires that a deduction from a pay ment to be made must be shown on the payment voucher together with the account to be credited’.
Deductions
Matsebula submitted that he advised the PS to remit all the outstanding deductions of the Provident Fund, pension and taxes to their respective entities, and reconcile all below the line (suspense) Accounts to nil bal ance at the end of the financial year, accordingly.
Also, the A reported that a matter he raised in his previous financial year’s audit report regarding an outstanding balance amounting to E1 177 153.1 in respect of Deceased Mine Workers, and Funds for Surviving Spouses/Ben eficiaries, under the Minister’s Office, was not addressed by the ministry.
“I requested the Controlling Officer to provide the instrument establishing this Special Fund Account, the purpose of the Programme / Project, Cashbook, Financial Records and supporting doc uments, and Bank Statements.
The Controlling Officer did not pro vide a response to this matter and hence the ministry may be liable for institu tional sanctions as per section 10 (1) (j) of the Public Finance Management of Act of 2017.”