INDIVIDUALS POCKET OVER E2M FROM 33 SCHOOLS

MBABANE- An undisclosed number of individuals pocketed over E2 million from 33 schools.

This is said to have resulted in government losing thousands of Emalangeni through non-payment of taxes by the individuals who supply schools with various items. This is because many schools continued to make payments to individuals instead of registered companies for supplies yet this practice promotes possible tax evasion, which has a negative effect on the economy of the country. According to the Public Schools Audit Report for the financial year ended December 31, 2018 tabled at the House of Assembly last week, Auditor General Timothy Matsebula discovered that many schools made payments to individuals instead of registered companies.
From the 46 schools audited, at least 33 of them were found to have made payments to individuals instead of companies. The total amount of money was E2 243 915.26. Had the schools been paying the money to companies, it would be beneficiary to government as the companies would pay the 15 per cent value added tax (VAT) to the Eswatini Revenue Service (ERS).

Highest

The highest figure came from Sitsatsaweni High School, which made payments to individuals amounting to E340 689.09. The AG stated in the report that the act by the school was in violation of the Financial and Accounting Instruction number 0814. “Cheques for payments to a firm will be drawn in favour of the firm or company and not to any individual of that firm or company. Making payments to individuals instead of a company makes it easy to avoid tax, thus depriving government of revenue, which hampers economic development,” said the AG in the report. He mentioned that in response, the controlling officer acknowledged the observation but stated that the school committee had decided to use local people for smooth running of the school for services and goods. Ndunayithini High School also had a high figure paid to individuals and it amounted to E225 570. Another high figure contained in the report came from Nkonjwa High School, which made payments amounting to E110 756 to individuals. It was the same story with Ndzevane High School as the AG discovered that it made payments amounting to E114 154 to individuals.

Siphofaneni High School also made it to the list of schools which made payments to individuals. The school made payments amounting to E90 382.61. The AG stated that when he queried the controlling officer about the issue, he said he was not aware of the procurement requirements. “He also stated that sometimes they found it necessary to support smaller local individuals who provide minor services such as firewood, electrical faults, plumbing etc as they need to pay school fees in the same school,” the AG said in his report.

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