Auditor General (AG) Timothy Matsebula has been granted permission to find a consultant to conduct a forensic audit for the E500 million Nhlangano to Sicunusa (MR13) Road Project.
This will be the second consultant to be engaged for the same exercise after the first one failed to deliver according to the terms of reference.
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The engagement of another consultant comes after the AG raised an audit query about the first construction of the road, which has now been completed by Inyatsi Construction through a public-private partnership (PPP) with government. The road was handed over in May 2024.
Before Inyatsi Construction took over in 2014, a consultant had been engaged to conduct a forensic audit following alleged mismanagement of funds.
Principal Secretary (PS) in the Ministry of Public Works and Transport, Thulani Mkhaliphi, and the AG told the Public Accounts Committee (PAC) that the audit conducted by the first consultant was incompetent. Government had set aside around E3 million for the forensic audit.
The AG explained that the consultant failed to perform the third and final part of the terms of reference — gathering evidence that could be used in court to criminally charge suspects or institute civil claims. As a result, the consultant was not paid, and funds are still available to engage another firm. However, government processes required special permission before proceeding.
This year, the AG confirmed that such permission had been granted.
On Thursday, Communication and Stakeholder Engagement Officer Bongile Mavuso said the AG’s office was finalising the preparatory work to find and engage a new consultant.
“A meeting was held on this issue on Thursday,” she said, adding that the tender has not yet been issued.
Audit Concerns and Irregularities
In the AG’s financial audit report for the year ended March 31, 2018, it was revealed that the project was initially expected to cost E465,990,202.85 and take 24 months to complete. However, after over 60 months, it was still incomplete, and payments had already exceeded E576,101,574.86.
The AG flagged several irregularities:
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Irregular supplier pre-qualification: Kukhanya/Gabriel Couto Joint Venture was recommended despite failing to meet pre-qualification requirements twice.
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Approval without funder consent: The contractor was appointed without African Development Bank (AfDB) approval, contrary to the loan agreement.
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Contractor withdrawal: Gabriel Couto, a major shareholder in the joint venture, pulled out after funders withdrew financing.
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Interest on late payments: E14,457,18.15 was paid in interest due to delayed payments.
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Irregular consultancy fees: Government paid E16,444,660 to MZCK Consultants instead of the agreed E10 million covered by funders. An extra E5 million was added without explanation.
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Unjustified compensation: A farm owner due E191,132.88 was instead compensated E3,000,000 without justification.
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