It seems those of us who have questioned King Mswati III’s 5 billion US dollar (E50 billion) power station scheme have touched a very raw nerve.
We are asking how a company called Franken Mining (which nobody can find a trace of) managed to secure a deal using international donor funds, without anybody having to go through an open tender process. We also are alarmed that King Mswati has deliberately by-passed the Swazi Government because, according to Prince Mangaliso, chair of the Swazi National Council (SNC), the close adviser to the king, ‘we wanted to avoid the delays, bickering and disagreements that characterise many government projects’.
The secrecy surrounding the deal and concerns about corruption have been raised both in Swaziland and internationally. Leading the public concern is the Swaziland Coalition of Concerned Civic Organisations (SCCCO) which says the project for two coal fired power stations ‘has the potential to destabilise the country, ruin the environment, destroy communities and set back the cause of poverty reduction by many years if not forever.’
SCCCO asked for 20 specific questions to be answered about the project ranging from the bone fides of Franken Mining; how the deal was organised; who has the expertise to make the project work and where the money was coming from.
These are all pertinent questions and in a society that had good governance and transparency the answers would be readily available.
Instead, SCCCO’s questions got a furious response from Prince Mangaliso. Even in Swaziland where public debate is rarely temperate, the Prince’s outburst was exceptional. In an interview with the Times Sunday, the Prince called SCCCO ‘Judas’. He went on to launch a bitter personal attack on Bishop Mabuza, the chair of SCCCO, and then, in what can only be described as a rant, attacked the Anglican Church.
What the Prince didn’t do was answer any of the questions. His response is revealing because it is out of proportion. I suspect he and the others at the heart of this dodgy deal are angered that it has become public before they are able to deliver it signed and sealed.
The questions, SCCCO want answered are as follows:
1 No-one can find any independent reference to a Company called Franken Mining – what is its background, experience, and financial capacity to undertake a project of this size. Who are the directors?
2 How was Franken Mining chosen and why was an auctioning process not used?
3 Why is there talk of donors when private equity could develop and run this project?
4 Will the Swazi Nation or Tibiyo borrow any money to help fund this project? If so what are the repayment terms?
5 What specific experience does Professor Whelpton have in international mineral extraction contract negotiation?
6 Who else is in the Swaziland Negotiating Team, what relevant skills and experience do they have and how were they chosen?
7 What is their mandate, what are the limits of their mandate, who are they responsible to?
8 What expert support do they have access to in terms of legal, economic, business, environmental, geological, technical, policy impact, poverty reduction, taxation etc?
9 What arrangements will be in place to ensure that the income generated goes towards developing a sustainable future for Swaziland?
10 What oversight arrangements will be in place to ensure equity, and fairness?
11 Given that this type of project does not feature in the Poverty Reduction Strategy will the strategy be readjusted to take it into consideration?
12 Given the attitude of Prince Mangaliso, that government involvement and oversight is an unnecessary hindrance, when will government become involved?
13 At what stage does the negotiating team expect to carry out environmental impacts, water usage and social impact assessments?
14 How will these assessments feed into the negotiating process?
15 Will there be parliamentary oversight or ratification of the process?
16 What consultation will there be with civil society, business, affected communities etc?
17 When will the cost benefit analysis be available?
18 What analysis has been done on opportunities for corruption and what measures are being undertaken to prevent them?
19 What comparisons to other similar projects have been undertaken, were renewable energy sources considered?
20 Is the Prince aware of the Extraction Industries Transparency Initiative and the United Nations Resolution on Strengthening Transparency in Industries and is it prepared to support the processes that they advocate for? If not, why not?
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