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FINANCE PS CRACKS WHIP ON PROJECT-FUNDED CARS

18/02/2024 16:17:00 Nimrod Hlophe

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MBABANE – Talk about cracking the whip!

Seven government ministries have been called upon to account for all cars that were bought through project funds. This is reflected in a memorandum issued by the Principal Secretary (PS) in the Ministry of Finance, Sizakele Dlamini. The memorandum is a directive to the seven ministries to provide information on inventory for all cars purchased through project funds.
The ministries are those of Public Works and Transport, Natural Resources and Energy, Health, Education and Training, Economic Planning and Development, Agriculture as well as Information Communication and Technology (ICT).

project funding

The memorandum reads: “You are kindly requested to submit to the ministry information regarding cars bought through project funding. The information sought is about the number of cars bought through each project funding, their registration as well as submission of the relevant papers for the different cars.” The information, according to the memorandum, was expected to be submitted by the end of Friday February 9, 2024. This publication engaged the PS regarding the memo, in particular to ascertain what had motivated it and what government aimed to achieve. Also, this publication asked to know why it was only seven ministries that were asked to send the information. Firstly, the PS clarified that the information was sought from ministries that had externally-funded projects.

Secondly, she stated that the Ministry of Finance aimed at confirming that all project cars were registered in the government fleet register. “We were surprised that the Ministry of Education and Training had project vehicles registered under the name of the under secretary,” the PS said. A government employee, who spoke on condition of anonymity, said what the Ministry of Finance has ordered was something that should have been done a long time ago.

how these cars are utilised

“The information provided must also include how these cars are utilised. We have seen some of them being used on weekends for personal errands. They need to be properly monitored,” the employee said. Donor funds come in handy for the Government of Eswatini to execute service delivery. In both the 2019/2020 and 2020/2021 financial years, donor funds accounted for three per cent of Eswatini’s budget (at around US$143m). This is the equivalent of E2.57 billion at the current foreign exchange rate. This includes funding for projects that provide a range of agricultural inputs, health programmes and infrastructure, and sanitation and water supply, among others. Donors offer technical assistance in range of areas. The country receives technical assistance in particular areas from donors that include the International Fund for Agricultural Development (IFAD), FinMark Trust and the World Bank. The European Union (EU) also assists in funding various projects and sectors including agriculture. Other donors are active in projects in specific areas such as health and children.

bought with a loan

Meanwhile, despite that the PS did not pick on any particular ministry, our publication reported last month how five vehicles bought with a loan from World Bank have been registered in Nanikie Mnisi’s name. Mnisi is the under secretary in the Ministry of Education and Training. Government obtained a loan of E486 million from the World Bank Group to strengthen the country’s education service delivery and management systems. A sum of E486 million is the equivalent of US$27 million. The project is also co-financed by the Global Partnership for Education (GPE) through a grant of E85.5 million, the equivalent of US$4.75 million. The vehicles are three Toyota Station Wagon (Fortuner 2.4 GD) retailing at E733 100 each, and two Toyota LDV (Toyota Hilux Raider) priced at E602 100 each. In total, the five vehicles cost, at minimum, a sum of E3.4 million. The registration of the government assets in a person’s name is sharply contrary to the Public Finance Management Act of 2017 and the Constitution of the Kingdom of Swaziland (Eswatini).Section 277 (1) of the Constitution states that: “subject to the provisions of Chapter XII, all properties and all assets which immediately before the commencement of this Constitution were vested in any authority or person for the purposes of, or in the right of the government or in the government shall, on the commencement of this Constitution, vest in the government.”

vest in government

Upon commencement of the Constitution, legal experts advise that all public assets shall vest in government. It was also gathered that there was no provision in the Public Finance Management Act (PFMA), 2017, for personal registration of government assets. The expectation is that all government vehicles should be entered in the car register at Central Transport Administration (CTA). Section 80 of the PFMA provides that asset management lies primarily on the PS in the Ministry of Finance and secondarily falls under the jurisdiction of chief executive officers of public entities. For an asset to be registered in the Asset Register, it should be in the name of the public entity, but not in the name of an officer or principal secretary.
Section 80 (1) provides that: “the chief executive officer of a public entity, local government or government business enterprise shall be responsible for the management of assets of the public entity and shall manage the assets to ensure government achieves value for money when acquiring, using and disposing of government assets.” Section 72 of the Act states that the PS responsible for finance has the power to keep records of accounts of loans taken by government.

public assets

It has been learnt that all public assets registered as SD, including those driven by the ministers are registered under government. The World Bank-financed project is expected to improve the quality of education in the early years and for junior secondary pupils, in targeted areas. When seeking the loan, the Government of the Kingdom of Eswatini stated that it recognised the importance of the education sector and the role it was playing in building the country’s human capital and transforming its economic and social landscape. Despite prioritising education both in terms of financing and policies (Eswatini introduced free primary education (FPE) in 2010), school completion rates and learning outcomes have been low compared to other lower-middle income countries. Prolonged school closures during the COVID-19 pandemic are likely to have exacerbated student dropout rates and low learning levels, particularly for children from poor and vulnerable households. It is said that the project supports government in addressing learning losses caused by the COVID-19 pandemic, particularly among the poor and most vulnerable.

life-cycle approach

It takes a life-cycle approach to human capital development, ensuring that all children start with a solid foundation for learning by strengthening the quality of early childhood care, development and education, as well as supporting teachers to deliver effective foundational literacy and numeracy programmes in primary schools. The World Bank commended government for prioritising human capital investments. Government was also applauded for its dedication to improving accessibility, effectiveness and inclusiveness of education services, particularly for orphaned and vulnerable children. The project supports Eswatini’s human capital development agenda by strongly aligning with the country’s National Strategic Development Plan (2018/19-2022/23) and the new Education Strategic Sector Plan (2022-2034).