…. MPs Question How International Convention Centre Project Exceeded Approved Budget By Nearly 197 Per Cent
By Mbono Mdluli
LOBAMBA – Members of Parliament serving in the Public Accounts Committee (PAC) have intensified scrutiny of the government’s spending on the International Convention Centre (ICC), demanding detailed explanations from the Ministry of Economic Planning and Development after auditors revealed that the project exceeded its approved budget by more than E707 million.
The matter dominated proceedings in the House of Assembly on Wednesday when ministry officials appeared before the committee to respond to concerns raised in the latest report by the Office of the Auditor General (OAG).
According to the Auditor General’s findings, Parliament had approved approximately E360 million for the ICC project during the 2024/25 financial year. However, actual expenditure eventually surpassed E1 billion, resulting in an unappropriated expenditure of E707.9 million — an overrun of about 196.7 per cent above the amount authorised by lawmakers.
The revelation prompted strong reactions from PAC members, who questioned whether the expenditure complied with public finance regulations and whether Parliament had been adequately consulted before such a significant increase in spending occurred.
Auditor General Flags Serious Budget Deviation
The Auditor General’s report highlighted that government accounting rules require controlling officers to ensure expenditure remains within limits approved by Parliament.
The report noted that the ministry incurred expenditure well beyond the approved allocation, raising concerns about compliance with established financial management procedures and the effectiveness of internal controls.
Committee members said the magnitude of the overspending warranted a thorough explanation, particularly given Parliament’s constitutional role in authorising the use of public funds.
Ministry Attributes Overspending to Delayed Loan Funding
Responding to the committee, Principal Secretary in the Ministry of Economic Planning and Development, Thabisile Mlangeni, explained that the situation arose due to delays in the disbursement of loan financing intended for the ICC project.
She told lawmakers that funding for the project had initially been budgeted for in a previous financial year and was expected to be financed through a loan facility. However, the anticipated loan funds were not released within the planned timeframe.
According to Mlangeni, the funds only became available in the following financial year, creating complications in the accounting and budgeting process.
“The budget allocation was available in the previous financial year and was expected to be financed through a loan. The disbursement was delayed and only happened in the following financial year. We approached Cabinet and received approval to proceed,” she explained.
PAC Questions Adequacy of Oversight
While acknowledging the ministry’s explanation, PAC Deputy Chairperson Manzi Vincent Zwane expressed concern that weaknesses in financial controls may have contributed to the situation.
Zwane said the committee’s review suggested that the ministry had benefited from gaps in oversight mechanisms, allowing expenditure to proceed despite exceeding the amount approved by Parliament.
“We found that the over-expenditure occurred and it appears the ministry benefited from weak control mechanisms,” he said.
MPs Insist Parliament Should Have Been Consulted
Adding his voice to the debate, Zombodze Emuva Member of Parliament Ntando Mkhonta argued that Parliament should have been informed and consulted before expenditure exceeded the approved allocation.
Parliament’s Constitutional Role Emphasised
PAC members repeatedly emphasised that parliamentary approval remains a cornerstone of public financial management.
Principal Secretary Acknowledges Possible Procedural Gaps
Under further questioning from MPs, Mlangeni conceded that the ministry may not have exhausted all the necessary procedures before incurring the expenditure.
Accountability Remains in Focus
The PAC’s examination of the ICC expenditure forms part of its broader mandate to ensure public funds are managed responsibly and in accordance with the law.
