King Mswati III of Swaziland, sub-Saharan Africa’s last
absolute monarch, is personally benefitting from monies paid by international
companies to operate in his kingdom.
The King is receiving millions of dollars a year from
companies including the cell phone giant MTN; sugar conglomerates Illovo
and Remgro; Sun International hotels and beverages firm SAB Miller, the South
African newspaper Sunday Times has
reported.
The newspaper says this money helps prop up the Swazi Royal
Family and finances the King’s lavish
lifestyle which includes palaces, a fleet of luxury cars and international
holidays. Meanwhile, about seven in ten of his 1.4 million subjects live in
abject poverty with incomes of less than US$2 a day.
The details revealed of the King’s income are not new, but
media in Swaziland have been scared to publish details for fear of retribution
from the monarch. At present a magazine editor and writer are on trial in Swaziland
after publishing mild criticisms of the kingdom’s judiciary which is
hand-picked by the King.
Previous reports on the King’s income have appeared on the
Internet; however the Sunday Times, which
is published in Johannesburg, circulates in Swaziland and this is the first
time Swazi people without Internet access have been able to read about the
King’s finances.
In the past state authorities have attempted, with varying
degrees of success, to block copies of newspapers from South Africa that
contained reports critical of the King. It is not known if similar attempts
were made to restrict circulation of the Sunday
Times which was published on 13 July 2014.
In its report the Sunday
Times said the companies, which are based in South Africa, ‘have all brokered
cosy relationships with the monarchy’.
It added, ‘These companies have either given large chunks of
the shares in their Swazi businesses to Mswati directly or to Swaziland’s
investment institution, Tibiyo
Taka Ngwane over which Mswati has absolute control.’
It reported that MTN, which has a monopoly of the cell phone
business in Swaziland, paid dividends directly to the King. He holds 10 percent
of the shares in MTN in Swaziland and is referred to by the company as an
‘esteemed shareholder’. It said MTN had paid R114 million (US$11.4 million) to
the King over the past five years.
The newspaper also reported that the King was receiving
income from Tibiyo Taka Ngwane, which paid dividends last year of R218.1
million. The newspaper reported ‘several sources’ who said it was ‘an open
secret’ that although money generated by Tibiyo was meant to be used for the
benefit of the nation, Tibiyo in fact channelled money directly to the Royal
Family.
The newspaper quoted a report from Freedom House which
stated, ‘Foreign companies wishing to enter Swaziland must bribe Mswati with
shares or cash in varying amounts depending on the potential for profitability
of the proposed venture and the new business’s possible impact on Mswati’s own
business interests.’
The Sunday Times
reported that MTN had a monopoly in Swaziland and was used by 57 percent of the
population. It said MTN was able to keep prices high, citing the cost of 300
megabytes of data in Swaziland as R149, while in South Africa the same amount
of data cost R79.
King Mswati holds substantial stakes in numerous companies.
The Sunday Times said sugar giant
Illovo owned 60 percent of Ubombo Sugar and Tibiyo owned the other 40 percent.
Tibiyo also owned 40 percent of Royal Swazi Spa hotel of which Sun
International held an ‘indirect’ 50.6 percent stake.
Remgro’s sugar subsidiary TSB owned a 26.4 percen t stake in
the Royal Swaziland Sugar Corporation and Tibiyo held 50 percent. SAB Miller,
which owned 60 percent of Swaziland Beverages was in business with Tibiyo, which
owned the remaining 40 percent.
See also
SWAZI ELECTION – SPONSORED BY MTN
DOES PM HAVE A FORTUNE FROM MTN?
US DECRIES SWAZI KING ON MTN DEAL
PHONES CUT AS SWAZILAND PROTESTS
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