ARE SWAZI LOANS A PACK OF LIES?

Did the Swaziland Government lie to us when it said this week it had secured loans to enable it to pay public service salaries this month?

Doubts are beginning to emerge that the government has not received the loans and might not get the money to pay salaries on time. Also, unspecified ‘conditions’ have been attached to the loan.

Khabonina Mabuza, the Swazi Ministry of Finance Principal Secretary, said government had not yet secured any loans, according to a report in the Swazi Observer newspaper.

The newspaper reported today (17 November 2011), ‘A source also confirmed this, saying the money to pay civil servants was not yet available, but hopefully government would conclude talks with the various institutions it has approached for assistance in the next day or two.

‘The source said the loan previously announced by government to have been secured had not yet been found. The source said what government had for now was only a commitment but the loan has not yet come through as it comes with conditions attached. This means that if government fails to secure the loan in the next two days, civil servants’ salaries would be delayed as initially announced to line ministries last week.’

The newspaper quotes Mabuza saying, ‘We haven’t got any loan but we’re trying to get one. It’s a worry if government cannot finance its wage bill. It’s really worrying because time is sort of running out for us.’

Mabuza’s comments flatly contradict those of Majozi Sithole, the Swaziland Finance Minister, who told the Times of Swaziland that government now had enough money from the loans to pay public service salaries for the next four months. If this is true, the loans could be worth at least E1.4 billion.

The Observer reports a source saying, ‘If government secures the finance, it will only be short term loans of three to six months, which means the problem it currently faces will just be postponed and not solved.’

See also

PRIVATE LOANS AT LEAST E1.4 BILLION

http://swazimedia.blogspot.com/2011/11/private-loans-at-least-e14-billion.html

SECRECY SURROUNDS NEW SWAZI LOAN

http://swazimedia.blogspot.com/2011/11/new-loan-easy-to-repay-claims-govt.html

SWAZI SENATE FIGHTS OWN PAY CUT

It seems that senators in Swaziland will have to be dragged kicking and screaming before they accept a 10 percent pay cut to help the kingdom’s failing economy.

The Government had decreed that all politicians would have to take the cut, but it is emerging that senators don’t want to do as they are told. Also, some Cabinet ministers are against the cut – even though the cabinet has reluctantly agreed to it.

The cut on senators’ pay was supposed to be implemented last month (April 2011), but senators refused. Instead, they want any cut to be negotiated with the Joint House Committee chaired by Senator Themba Msibi.

Senate President Chief Gelane Zwane yesterday repeated her stance that no one would or should touch their salaries.

The Swazi Observer today (13 May 2011) reports her saying, ‘The resolution of Senate still stands that our salaries must not be touched, the ministry of Finance knows that.’

However, Khabonina Mabuza, Principal Secretary in the Ministry of Finance insisted to the newspaper that all politicians would be affected by the 10 percent cut.

The Observer reports that the Cabinet was the first to accept the 10 percent cut after a recommendation from the International Monetary Fund (IMF) that this was one way to help the economy. Members of Parliament followed a month ago.

Despite the unwillingness of the senators to cut their own pay, the Swazi Government, handpicked by King Mswati III, sub-Saharan Africa’s last absolute monarch, wants public servants to take pay cuts. There is also a possibility that up to 7,000 out of Swaziland’s estimated 35,000 public servants will be retrenched to save money.

Meanwhile, it has been revealed that not all Cabinet Ministers were in favour of their own salaries being cut.

According to the Times Sunday (8 May 2011), some ministers, who receive about E79,000 (US$11,400) per month in pay and allowances, ‘were against the idea because they have heavy commitments on their salaries which when their money is reduced they may not cope in keeping up with them.’

The Times Sunday reported, ‘They also stated that instead of having their salaries reduced, government should be thinking about means of increasing their pay.

‘They also claimed that presently they being underpaid compared to peers in the southern African region.’