Crime

MBABANE – A Government fund meant to safeguard public enterprises has allegedly been looted through forged signatures, fake companies and manipulated payments.

A high-level fraud scandal has erupted within the Government’s Loan Guarantee Scheme, with three senior officials from the Public Enterprise Unit (PEU) accused of siphoning close to E1 million through a web of forged documents and fictitious service providers.

The scheme, housed under the Ministry of Finance, was established in 2009 to help public enterprises access commercial loans using government-backed guarantees.

It was initially administered by the Central Bank of Eswatini before being placed under a tender process, which saw Standard Bank Eswatini appointed as the administering bank.

Now, the very mechanism designed to protect public funds stands accused of being exploited from within.

The Civil Service Commission (CSC) has confirmed that three senior PEU officials have been placed on precautionary suspension and formally charged with six counts each of fraud and forgery. Disciplinary hearings are underway.

Investigations by the Times of Eswatini reveal that payments amounting to hundreds of thousands of Emalangeni were allegedly processed to companies that never tendered for, nor rendered, any services.

Government regulations require any procurement above E20 000 to go through a competitive tender process. Yet, according to sources, payments were authorised outside this framework.

It is alleged that internal documents were doctored, signatures forged and payment approvals manipulated to release funds. In some cases, senior officials later discovered payments had been processed under their names without their knowledge.

A routine bank reconciliation reportedly exposed irregular payments totalling E297 000. Further scrutiny uncovered additional suspicious transactions, including one of E93 000.

The names of the companies and the other payments are known to this publication, but will not be revealed for now as investigations by law enforcers and the CSC are ongoing.

The matter escalated when a senior official discovered disbursements bearing her signature that she had not authorised. Upon approaching the bank, she was informed that multiple transactions had already been processed. The issue was reported to the principal secretary and law enforcement, triggering a deeper probe.

The Loan Guarantee Scheme reportedly controls approximately E900 million in funding.

Two primary signatories, the principal secretary for Finance and the accountant general, serve as A signatories, while the PEU director and deputy accountant general act as alternative B signatories.

All payments are required to be supported by clear documentation stating the purpose of the disbursement.

However, sources allege that forged authorisation letters were sent to the bank via email, a standard communication channel between the PEU and the financial institution.

In one instance, three legitimate entities were reportedly listed for payment, but a fourth, allegedly a fictitious company, was added to the correspondence.

*Full article available on Pressreader*

Chairman of the Civil Service Commission Simanga Mamba. The disciplinary hearings of the three implicated senior officers are still pending before the commission. (File pic)