EXCLUSIVE FORENSIC REPORT EXPOSE HOW ENPC WASTED TAX PAYERS’ MONEY AND SHOCKING UNBRIDLED CORRUPTION
….leaked report exposes massive corruption within ENPC and raises questions about fuel reserve project
A new investigative audit by the Office of the Auditor General (OAG) has revealed shocking levels of waste, irregular payments and poor oversight in Eswatini’s long running attempt to build a Strategic Oil Reserve Facility at Phuzumoya.
The forensic audit investigation was initiated following allegations raised in the ENPC's Audit and Risk Subcommittee Report, which highlighted concerns related to procurement irregularities, financial mismanagement, and potential breaches of corporate governance. In response, the AG launched a focused investigation to establish the veracity of these claims and assess compliance with applicable laws, regulations, and best practices ni public sector management.
The mega project, first launched in 2018 under the Ministry of Natural Resources and Energy (MNRE), was intended to secure the country’s fuel supply by constructing large storage tanks in the Lubombo region. Instead, auditors say years of poor planning and questionable contracting have cost the taxpayer hundreds of millions of emalangeni with little to show for it.
Board member Thabile Nkhosi
According to a forensic investigation conducted by the Auditor General, Eswatini paid over E82.8 million to three companies for designs and drawings of the facility. These payments went to Taiwanese based CTCI Corporation, Billion Brother Project Management in partnership with Fhatani Consulting Engineers, and EPCM/SolidCare.
Even after these payments, auditors warn that the drawings “might not be used at all” because a new contract signed in April 2025 requires a fresh set of detailed designs by yet another company Overseas Electric & Engineering (OEE), a subsidiary of Overseas Investment and Development Corporation (OIDC).
Pius Gumbi, one of the board members
CTCI was the first contractor hired in 2018 to design the project. They were paid E35.5 million, taken directly from the Strategic Oil Reserve Fund, for producing basic project designs. But auditors note that the ministry’s initial scoping was so weak that the next company brought in said the designs had to be redone, triggering a costly “design optimisation” exercise.
ENPC board member Justice Dlamini
Between 2016 and 2021, four companies including Inyatsi Construction and the Eswatini National Petroleum Company (ENPC) itself were paid E57.7 million for road works, electricity connections and other preparatory activities. The OAG notes that these payments happened long before the final design was approved and before a single tank had been built.
The AG is scathing in his report stating that the company lacks in capacity project and contract management for large and complex infrastructure projects.
“There are no systems, mechanisms, processes and structures in place to effectively monitor, track, evaluate, mitigate risks and guide the progress of the project. This has been evidence by the fact that the Company failed to detect the shortcomings and failure of the Bilion Brother Project Management Consultancy and Fhatani Consulting Engineers joint venture, Buna Developers, Deloitte and Touche South Africa and EPCM/SOLIDCARE Joint Venture. This joint venture did not provide deliverables that are satisfactory and acceptable to the Company, despite the numerous time extensions requested by the joint venture consultant through letters dated 19th June 2023 and 31st August 2023, respectively,” reads the report now seen by Swazi Bridge
ENPC board Chairman Velaphi Dlamini
Then the Real Chaos Began In 2020 when the project was moved from the ministry to ENPC under the Petroleum Act. But the ENPC Board began tendering for services without a CEO or a Chief Financial Officer in place, a clear violation of procurement laws.
A new consultancy tender advertised in 2021 was won by Billion Brother Project Management. Their contract originally cost E9.9 million, but ENPC’s Board later increased it to E18.9 million, without seeking approval from the minister as required by law. Even worse, the addendum increasing the fee was not properly signed by both parties, making it invalid.
Despite this, ENPC still paid Billion Brother and Fhatani JV about E16 million, and then terminated the contract because the consultants produced almost nothing.
Some of the invoices submitted by Billion Brother included items linked to Deloitte South Africa, even though ENPC had no contract with Deloitte at the time. The audit warns that Billion Brother may have been used as a “conduit pipe” to channel payments to Deloitte. Meanwhile, Deloitte was later officially awarded its own tender, and paid E5.1 million for financial advisory services that produced no tangible outputs before the contract lapsed.
“Billion Brother Project Management Consultancy (Pty) Ltd proposed to offer the Design Optimisation and Bills of Quantities Consultancy Services as a Joint Venture with Fatani Consulting Engineers, as indicated in a Letter of Ofer dated 27th September 2021.14 However, there was no source document proving the registration of the joint venture between the two consultancy firms. The details of the letter of offer are a team of sub-consultants under the purported joint venture namely Damini Gibb consultants, Ngwenya Wonfor and Associates, and Tausi Consulting for the provision of Civil or Structural Engineering, Quantity Surveying and Environmental Consulting Services. The Evaluation Committee failed to perform due diligence when reviewing the tender proposals of the joint venture, thus depriving other eligible bidders the opportunity to be awarded the tender. In terms of Regulation 10 (2) (b) of the Public,” continues the report.
ENPC
ENPC also hired Buna Developers and EPCM/SolidCare JV for advisory and engineering work, without proper procurement processes. Their combined payments reached over E43 million, with auditors confirming E29.5 million of this was irregular expenditure.
In several cases, ENPC paid for the same scope of work twice, once under Deloitte and again under Buna Developers. New USD 290 Million Deal Signed Despite Earlier Failures In April 2025, after all the failed contracts and wasted spending, ENPC signed a massive USD 290 million (about E5.4 billion) deal with OEE for engineering, construction and management of the facility. This includes USD 66.8 million just for project management and engineering.
The report notes a number of irregular expenditures including buying of nine Samsung tablets for a total cost of E99,720.00 during the financial year ended 31st March 2024, intended for use by members of the Board of Directors. The purpose of the tablets was to support the installation of board software and enhance the efficiency of document sharing and communication.
Notes the report: “However, this procurement was not supported by the existing ENPC Gadget Policy (2019/2020). The policy does not include provisions allowing for the issuance of electronic devices to members of the Board as part of their entitlements or operational support.”
Efforts to get a comment from the ENPC board chairperson Velaphi Dlamini for a comment hit as his phone rang unanswered for the better part of yesterday.