BY MFANUFIKILE KHATHWANE
LOBAMBA – The Ministry of Natural Resources and Energy has told Parliament that it is now fully implementing a E9.7 million donor-funded project after receiving clarity on its objectives from the Ministry of Economic Planning and Development.
The update was provided by Principal Secretary and Controlling Officer Lindiwe Mbingo during a Public Accounts Committee (PAC) meeting held on Tuesday, chaired by Deputy Speaker Madala Mhlanga, as the committee examined the Ministry’s 2025 Financial Audit Report.
Presenting the audit findings, Acting Auditor General Ashmond Ngwenya said the ministry had incurred expenditure of E9.7 million under donor-funded Project F03352 without the release of an appropriated budget. He said the audit sought an explanation as to why the expenditure had not been processed through the normal government budget release system.
Responding to the findings, Mbingo explained that the funds had been transferred to the Ministry of Natural Resources and Energy by the Ministry of Economic Planning and Development before officials had been fully briefed on the project’s purpose and implementation arrangements.
“The money was deposited into the Ministry of Natural Resources and Energy, but we were not aware of what it was intended for. We engaged the Ministry of Economic Planning and Development to seek clarity, and it took some time before they explained the purpose of the project. After meeting with their Principal Secretary, our technical team was fully briefed on how the project involved our ministry. We are now fully on board and implementing the project,” she said.
Mbingo said the ministry deliberately delayed processing the funds until officials had a full understanding of the project’s objectives and implementation framework, enabling them to accurately capture the expenditure in the Government’s financial management system.
Ngwenya clarified that the audit did not find any evidence that the donor funds had been misused. Instead, the concern was that the Government’s financial management system had not been updated to reflect how the funds had been utilised.
PAC Vice Chairperson Manzi Zwane said the committee was surprised that a ministry could receive funding for a project without first being informed about its purpose.
“It is concerning that a ministry can receive money for a project it knows nothing about. There must be proper coordination and communication between ministries to avoid such situations,” he said.
PAC member and Ludzeludze MP Nomkhosi Masuku also questioned whether ministries were being given sufficient time to prepare for projects that had not been included in their approved budgets, saying the matter highlighted the need for improved planning and coordination across government.
Meanwhile, PAC member Sifiso Shabalala commended the Ministry of Natural Resources and Energy for moving swiftly to implement the project once its purpose had been clarified.
Earlier, Ngwenya told the committee that the audit covered the ministry’s recurrent expenditure, projects, assets and liabilities. He reminded accounting officers that all ministries must ensure government financial systems are updated promptly and that expenditure is properly recorded to strengthen accountability, transparency and sound public financial management.
(Courtesy Pic)
