AG EXPOSES ROT IN RAIL-LINK PROJECT

Auditor General Timothy Matsebula has raised serious concerns of inefficiency and lack of transparency on the ongoing Eswatini Rail-Link Resettlement Project (ESRL).

The AG noted that there were fewer relocations of the project’s affected homesteads than planned and funded, as only 76 homesteads were relocated at a total cost of over E334.5 million instead of 188 that were funded at a total cost of E372.9 million.

| Eswatini Observer WhatsApp Channel

He also reported that there were significantly varying design layout costs of houses for project-affected persons. Further, there were inconsistencies in the construction of homesteads, while the resettlement of project-affected persons was not time-bound.

Responses provided by Eswatini Railways management were, according to the AG, not satisfactory, hence the queries remained unanswered. This was discovered during the audit of the financial statements of Eswatini Railways.

The audit queries were detailed in the compliance audit report of public enterprises and local government authorities of the Kingdom of Eswatini for the financial year ended March 2024. The report was tabled by Minister of Finance Neal Rijkenberg in the House of Assembly yesterday.

The ESRL is a proposed 150km railway project by Eswatini Railways and Transnet Freight Rail to connect Lothair, South Africa, with Sidvokodvo, Eswatini, providing a direct, high-capacity freight corridor to the Richards Bay port.

The project aims to enhance regional integration, reduce transport congestion, and boost economic growth for Eswatini and the SADC region by facilitating efficient movement of goods, particularly coal and other bulk commodities.

While initial steps like feasibility studies were completed in 2015, the project’s current stage is unclear, with recent updates showing progress in feasibility and financing model discussions rather than active construction.

The AG reported that financial records for the year ending March 2023 showed government had provided E372,999,998.15 for the relocation of 188 affected homesteads, as per tender documents.

However, as of December 2024, only 76 homesteads (40%) had been relocated at a cost of E334,565,835.90 (90%), inclusive of consultancy fees, leaving a balance of E38,434,162.25 as of March 2024.

He said Section 11 (2) of the Public Finance Management Act of 2017 requires the chief executive officer or board of an entity to implement measures for managing public finances consistent with principles, standards, processes, and systems to ensure authorised, effective, efficient, economical, and transparent use of resources.

Further, Section 11 (3) mandates the chief executive officer to take appropriate measures to ensure that commitments do not exceed the amount appropriated.

Matsebula cautioned management that failure to meet the set target with the provider could result in inefficient allocation of resources, budget overruns, and ultimate delayed project completion.

He also advised management to account for the funds provided to relocate the remaining 102 project-affected persons.

In response, management stated that the ESRL project encompassed more than resettlement and housing; it included feasibility studies conducted jointly with Transnet, environmental studies, exhumations and re-burials, land purchase, resettlement of affected persons, and main civil works.

Management also stated that government had provided funding since 2014 for activities preceding the civil works. They said the amount of E372.9m was not exclusively for construction.

“As of March 31, 2021, approximately E136 million (36%) had been utilised for preliminary activities such as feasibility and environmental and gravesite relocations, leaving E236 million,” responded management.

They also stated that the budget required for the resettlements was in 2017 estimated to be E550 million. The resettlement, however, only started in 2023, and only 40% of the estimated amount had been used for the resettlement of 76 homesteads, which also equated to 40% of the 188 households.

The AG said there was no clear breakdown showing how much was specifically allocated for resettlement. Matsebula said the low relocation rate of 76 out of 188 homesteads, despite substantial expenditure, raises serious concerns regarding efficiency and transparency.

Eswatini Observer Press Reader  | View Here