Stock worth over E5 million missing at CMS - Matsebula
MANZINI – The Auditor General (AG), Timothy Matsebula, has reported that there is missing stock worth E5 848 589.89 at the Central Medical Stores (CMS).
◗ March 31, 2019
◗ March 31, 2020
◗ March 31, 2021
◗ March 31, 2022 Total Matsebula, in his Consolidated overnment Financial Statements (annual accounts) of the Kingdom of Eswatini for the financial year ended March 31, 2022 report, said: “I further reported that there was missing stock worth E5 848 589.89 as at March 31, 2022 and E128 452.22 as at March 31 2021.”
He said this was reported as a difference between physical count by the CMS and the government accounting system balance. However, the A reported that he was not furnished with a supporting loss report and investigation report from the Ministry of Health.
Evidence
Financial Year
Matsebula reported that there was also no evidence that such reports had been submitted to the Ministry of Finance, as required by the Stores Regulations.
This, he said, was in contravention of Stores Regulation 1501(1), which stated that loss of or damage to stores shall be reported by the supervising officer immediately to the head of department (HoD) with a copy to the accountant general and auditor general.
Furthermore, he said Stores Regulation 1502 required that ‘HoDs shall order investigations into each loss of or damaged to government stores, following preliminary report made by a supervising officer in terms of Regulation 201’.
In light of this, he reported to have
Obsolete Stock (E)
6 741 219.61 3 628 712.57 2 983 425.83 4 938 343.95 18 291 701.96 advised the Principal Secretary (PS) in the Ministry of Health, Dr Simon wane, who is also the controlling officer to prepare a loss report and investigation report on the missing stock of medical drugs, as required by the stores regulations, and submit both reports to the auditor general and accountant general.
Stock
On the other hand, he submitted that accumulative obsolete stock of medical drugs worth E18 291 701.96 was not written-off, over a period of four years.
“The stock of medical drugs was reported as obsolete in the Medical Drugs Trading Account but the ministry did not seek authority to write-off the stock value. The obsolete stock of drugs reported in 2019 was worth E6 741 219.61, in 2020 was worth E3 628 712.57, in 2021 was worth E2 983 425.83, and in 2022 was worth E4 938 343.95,” reads the report in part.
He said his concern was that since closing stock value of medical drugs included the accumulative obsolete stock not written-off in the past years, the closing stock value therefore did not reflect the true and fair value of available inventory on hand at the end of each financial year.
Value
The A said the closing inventory value was hence overstated by the obsolete stock. He reported to have advised the PS in the Ministry of Health that the ministry should investigate the cause of obsolete stock while there was high need of medical drugs at health facilities, and promptly seek authority to write-off the obsolete stock.
Matsebula further reported that the Ministry of Health could be liable for institutional sanctions as per section 109(1) (j) of the Public Finance Management of Act of 2017 as the controlling officer did not provide a response to this matter.
Furthermore, he reported to have observed that the closing inventory value of medical drugs was overstated by E7 272 642.20, as a result of incorrect accounting treatment of stock write-off. He said the stock was worth E3 636 321.10.
He said the amount was added to the closing inventory amount instead of being deducted from it.
Above is a table showing obsolete stock in the past four years.