By 
By Lwazi Dlamini
The cat is finally out of the bag!
The suspension of the Phalala Referral Fund by the Government last year came because of a staggering over E1 billion debt.
The Special Care Medical Fund has an overdrawn balance of E1 359 377 101.63.
This was revealed in the Public Accounts Committee’s Recommendations in the Auditor General’s Financial Audit reports on Government accounts for the financial years ended March 31, 2022 and 2023.
Under the Ministry of Health, in a subheading Overdrawn balance – Special Care (Phalala) Fund, the report reads: “The Auditor General observed that the Special Care Medical (Phalala) Fund account had an overdrawn balance of E1 359 377 101.63 with no activities of income and expenditure.
The Special Care Medical (Phalala) Fund account has been depleting an overdrawn balance over a period of five years, which remains uncleared by the Ministry,”
The report states that the AG further observed that the outstanding debts and/or unpaid invoices (bills) from the service providers for the Special Care Medical Aid (Phalala) Fund were not disclosed or reported in the Financial statements.
“As such, the debts inventory was not brought into the books of accounts,” the report reads in part.
The Principal Secretary (PS) Khanyakwezwe Mabuza submitted that the Ministry has since upscaled the localization of services in order to control the Phalala Fund debt. “In the meantime, it has sent a request to the Ministry of Finance to draft new regulations for the Phalala Fund,” the report states.
The Public Accounts Committee has recommended that the PS follow up the matter with the Ministry of Finance and submit an update within three months after the adoption of the report by the Honourable Committee.
The suspension of the Phalala Fund Medical Referral Fund to scrutinize its expenditure and allocation to emaSwati in need of specialized treatment follows the Forensic Audit on the Acquisition and Distribution of Medicines to Public Health Facilities in Eswatini, which started last year.
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The fund, whose objective is to assist deserving emaSwati, who would otherwise, not have access to specialized medical care, cannot perform its mandate due to financial constraints.
Some of the specialized treatments are done locally by private doctors and/or private hospitals; however, in most instances, locals are transferred to neighbouring countries, in particular South Africa.
