A report by the Southern African Development Community (SADC) Board has detailed how millions of dollars are being lost at the regional bloc’s secretariat.
The audit report has exposed deep financial management failures, weak controls, procurement irregularities and a persistent running into millions of dollars as well as inability by secretariat to implement the regional bloc’s decisions.
The findings which are contained in the SADC Board of Auditors’ report for the financial year ended 31 March 2026 reveal a systemic breakdown in governance, execution and accountability that is costing the regional bloc significant value for money. The report which was addressed to the Council of Ministers shows that at the centre of the crisis is a chronic failure to implement decisions as approved budgets and programmes are repeatedly delayed, partially executed or not implemented at all.
The report shows that out of 252 Council of Ministers decisions requiring action, only 88 were fully implemented by 3 June 2026. This represents just 35 percent completion. A further 41 percent were only partially implemented, while nearly a quarter had no recorded implementation status.
The report which was prepared by Chairperson of SADC Board of Auditors Thomas Makiwa who is the
Auditor General of Malawi and his team says the report ‘includes information on the internal control deficiencies that were identified as root causes of the matters reported as well as the possible impact on the accounts and objectives of SADC.’According to the report ‘Addressing these deficiencies will help the organisation (SADC) to perform better.’
The report warns that implementation performance is deteriorating with an increasing backlog of unresolved decisions that continue to accumulate year after year.
The March 2026 Council meeting shows that only one of out of the 84 decisions was fully implemented while 51 had no implementation status at all.
Across the region, only 22 percent of 1,235 decisions from the March and August 2025 meetings were fully implemented with several member states recording zero implementation. This means large portions of approved regional priorities are not translating into action on the ground and the associated funding is not delivering intended results.
The audit also highlights procurement practices that raise serious concerns about transparency and value for money.
In sampled air-ticket contracts worth US$778,450, two travel companies dominated the awards. Blueberry Travel/Voyage secured seven contracts worth US$494,230 while Above and Beyond Travel received three contracts worth US$195,080.
Together, the two firms accounted for 89 percent of the total value US$689,310. The report raised questions about concentration of awards and competitive fairness. Auditors said management was unable to provide sufficient documentation explaining why contracts repeatedly went to the same suppliers, making it difficult to independently verify whether procurement rules were consistently followed.
While management denied any preferential treatment, the absence of clear documentation and the repeated concentration of awards point to weak oversight and potential inefficiencies that could be inflating costs, the report notes.
SADC’s financial position is also under growing strain with total liabilities standing at US$88.05 million, of which US$86.93 million is payable on demand.
The report says this creates significant liquidity pressure as the Secretariat may struggle to meet short-term obligations without additional funding or improved cash management.
Compounding the pressure, Eswatini and South Africa have requested refunds of approximately US$32 million in unused contributions linked to the SADC Mission in Mozambique. These refund claims further tighten available cash resources and increase strain on the Secretariat’s already fragile liquidity position.
The Reserve Fund which is intended as a financial buffer is also below required levels. It stands at US$16.48 million against a minimum requirement of US$20.56 million leaving a shortfall of US$4.08 million.
This weakened buffer reduces the Secretariat’s ability to absorb shocks or cover unexpected costs, increasing dependence on member state contributions, the report says.
The audit further flagged an unresolved US$8.44 million portion of a US$17.25 million claim submitted by South Africa’s National Defence Force for SAMIDRC deployment costs.
Auditors said the documentation provided was incomplete, meaning a significant portion of the claim remains unsupported and unverified. This has raised concerns about potential overstatement of liabilities and delayed financial reconciliation.
In another example of inefficiency, the EU-funded ECESPA peace and security programme has absorbed only 17.1 percent of its US$13.84 million budget, leaving more than US$11 million unspent.
At the current pace of implementation, auditors warn the programme risks closing with large unutilised funds. This reflects weak execution capacity, poor planning and delayed delivery of donor-funded initiatives.
The findings portray the Secretariat as an institution where millions are not being lost through a single act of fraud, but through systemic inefficiency, weak execution, poor documentation and chronic delays in implementation.While management has pledged reforms, including improved monitoring systems, procurement changes and stronger financial controls, auditors say many of the weaknesses remain unresolved.
The secretariat had not responded to Sunday Standard queries at the time of going to press.