BY SIFISO NHLABATSI
MBABANE – Obsolete pharmaceutical stock valued at E237,666,390.71 at the Ministry of Health is the biggest government loss currently under investigation by the Ministry of Finance’s Losses Committee. This is according to the Ministry of Finance’s First Quarter Performance Report for the 2026/2027 financial year.
The report shows that the Health Ministry’s case remains ongoing, with the committee recommending further inquiry into the disposal of the obsolete medicines.
The Losses Committee was established in accordance with Part VII: Enforcement, Section 112 of the Public Finance Management Act, 2017, to oversee and address the reporting and investigation of losses involving government property.
During the quarter under review, the Ministry of Finance said it continued supporting ministries and departments on the proper reporting of losses of public assets. The committee examined reports submitted by six institutions, namely the Ministry of Health, the Ministry of Finance’s Internal Audit Department, the Ministry of Commerce, Industry and Trade, the Ministry of Justice and Constitutional Affairs, the Ministry of Natural Resources and Energy, and the Ministry of Tinkhundla Administration and Development.
After deliberating on the cases, the committee issued recommendations aimed at strengthening internal controls and minimising future losses of public assets.
Besides the Health Ministry’s case, the committee considered an accident involving a government Isuzu Double Cab 2.4L petrol vehicle belonging to the Ministry of Finance’s Internal Audit Department. The report states that the committee recommended the responsible officer be surcharged E30,000, adding that the recommendation has already been implemented.
The committee also dealt with an unrecoverable pre-1986 loan of E15,095,845 involving the Eswatini National Industrial Development Corporation (ENIDC) under the Ministry of Commerce, Industry and Trade. It recommended that the amount be written off, a recommendation that was authorised.
At the Ministry of Justice and Constitutional Affairs, the committee considered an unaccounted imprest of E10,000 dating back to 2020 involving deceased officer Makhosini Dlamini. It recommended that the amount also be written off, and this was authorised.
For the Ministry of Natural Resources and Energy, the committee examined two losses: accident damage to a truck amounting to E211,035.65 and missing computer hardware components valued at E4,047. The report indicates that a total write-off of E215,082.65 was recommended and authorised.
Meanwhile, the Ministry of Tinkhundla Administration and Development reported a paid-for but undelivered laundry machine valued at E131,000 for Manzini South Inkhundla. The report says the matter remains ongoing, with further inquiry still underway.
The performance report further reveals that despite its important oversight role, the Losses Committee continues to face capacity challenges. Since its establishment in 2020, the unit has operated with only two officers. The Ministry says the unit is grossly understaffed and requires at least five dedicated Public Finance Management officers to effectively carry out its mandate and implement ongoing public finance management reforms.
However, among all the cases reviewed during the quarter, the E237.7 million obsolete pharmaceutical stock at the Ministry of Health stands out as by far the largest reported government loss still under active investigation.
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