A E900 million (US$90 million) oil contract that was
awarded without being tendered has been cancelled by the Swaziland Government
after more than four years.
Kantey & Templer had been contracted to build a
‘Strategic Oil Reserve’ at Phuzumoya in the Lubombo region. It was to store up
to 170 million litres of fuel.
The project had the enthusiastic backing of King
Mswati III who rules Swaziland as sub-Saharan Africa’s last absolute monarch.
The King receives 25 percent of all mineral income on Swaziland which he holds
‘in trust for the Swazi nation’. In reality he uses the money to fund a lavish
lifestyle that includes at least 13 palaces, fleets of top-of-the-range BMW and
Mercedes cars and a private jet. He is due to take delivery of a second jet
during 2018.
The Ministry of Natural Resources and Energy is in the
process of terminating the contract, the Observer on Saturday newspaper reported (10 February 2018). It
said little progress had been made.
In October 2013, King Mswati officially launched the construction of the project at a sod cutting ceremony. He said at the time, ‘The project that I bring to you today is one that is geared into transforming lives and take the entire region into higher heights.’
In October 2013, King Mswati officially launched the construction of the project at a sod cutting ceremony. He said at the time, ‘The project that I bring to you today is one that is geared into transforming lives and take the entire region into higher heights.’
Construction was supposed to take two years and create
300 jobs.
Even though it had already missed its deadline, King
Mswati, during the official opening of parliament in 2016, encouraged investors
to take advantage of the project.
The project was surrounded in controversy. Once
completed the facility would have a 90 million litres fuel capacity to last
Swaziland 90 days. It would store 42 million litres of diesel and 38 million
litres of petrol. No independent analysis had been undertaken to see if
this was needed in Swaziland.
In January 2015, Swazi Media Commentary reported that media had been excluded from a House of Assembly session where a special Act of Parliament was passed to allow the Government to make the payment for the project.
In January 2015, Swazi Media Commentary reported that media had been excluded from a House of Assembly session where a special Act of Parliament was passed to allow the Government to make the payment for the project.
Members of parliament had previously rejected a Bill
to guarantee the payment.
Claims of malpractice circulated in the kingdom and
members of parliament were concerned that the lucrative contract had not put
out to open tender. Media in Swaziland also reported that some people had registered
imposter companies as part of a plan to destabilise the project.
After a year the project had not started. It emerged
that the company originally contracted to build the project American Tank and
Vessel (AT&V) had withdrawn from the contract.
The reason for the withdrawal of AT&V has not been
explained publicly, but it is believed that the move was permitted under the terms
of the company’s contract.
Then, without public consultation or going through the
legal open tendering process, the contract was awarded to South African
Company, Kantey & Templer Consulting Engineers.
The Swazi
Observer, a newspaper in effect owned by King Mswati, reported the Natural
Resources and Energy Minister Jabulile Mshwama saying that ‘since His Majesty
had already announced that work had to begin by cutting the sod, her ministry
had been working round the clock that the project kick starts and according to
Swazi custom once the King has spoken, things have to be done.’
She said that Kantey & Templer Consulting
Engineers had previously erected fuel reserve tanks at the King Mswati III
International Airport.
When a Government Bill was first introduced to the
House of Assembly, members of parliament threw it out. The Times of Swaziland, the only independent daily newspaper in the
kingdom, reported, ‘The
MPs had tossed out the Bill after concerns had been raised about why the
tender for the construction of the about E900m facility had not been an open
one and they also questioned the particulars of Kantey & Templer
Proprietary Limited (Swaziland) [a company formed to oversee the project].
‘The MPs had said all government ministries were
expected to adhere to the
provisions of the Procurement Act without first resorting to the single
provision in the same Act even when the requirements of same are not met by the
project at hand as it was in this present case.’
The Times Sunday, an independent newspaper,
reported, ‘MPs are unhappy that other companies were not engaged, through
an open tendering system, to bid for the multimillion project. Suspicion reached high levels when the MPs
learnt that a closed tendering system was used to engage the South African
company to embark on the project. The nature of the suspicions cannot be
repeated for now.’
The Sunday Observer, another newspaper in effect owned by the King, reported that individuals were trying to destabilise the project. It reported, ‘Two prominent individuals identified as being behind the hijack include a present cabinet minister and a businessman who also happens to be a former cabinet minister.’
The Sunday Observer, another newspaper in effect owned by the King, reported that individuals were trying to destabilise the project. It reported, ‘Two prominent individuals identified as being behind the hijack include a present cabinet minister and a businessman who also happens to be a former cabinet minister.’
The newspaper reported, ‘An individual close to the
project confided that there is serious lobbying, by those who want a stake in
the project, to have it stalled. “The very same people who wanted to
register impostor companies are the ones who are now lobbying members of
parliament and cabinet ministers to have the project grounded. They are doing
this to serve their own selfish interests. They want to create bad publicity
around Kantey & Templer and the project in the hope that the tender award
would be cancelled,” the well-informed individual said.’
Senators also questioned the awarding of the tender.
The Observer on Sunday reported,
‘Senator Chief Kusa had also strongly questioned why the initial company
AT&V had suddenly withdrew from the project and questioned how the whole
project was costed and how the tendered company Kantey & Templer was
eventually awarded tender.
‘Senator Chief Kekela also wondered if the credibility
of the company was considered as the country has experienced a number of
projects that have failed as a result of companies whose profiles and
credibility was not considered. “We have seen companies that have come and made
heavenly promises that have however not come to effect and failed and I must
say I do not want to work on risks here as a risk is dangerous, we should not
therefore risk with the Swazi people,” the Senator said.’
In February 2018, the Ministry of Natural Resources
and Energy told the Observer on Saturday, ‘The contractor [Kantey & Templer] did
not meet the agreed upon timelines and we are working within the framework of
the agreement for the next steps in this project. It is envisaged that the
project will be returned to tendering in the very near future.’
See also
SWAZI
KING FELL FOR US$5bn CON-TRICK
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