BUSINESSMAN Walter Bennett has slammed government for not actively supporting EswatiniBank as its major shareholder.
The former senator recalled that the bank was established by the late King Sobhuza II with a clear vision of ending impediments in funding by other international banks to the nation. He said this came in handy for Emaswati to access funds to use even on Eswatini Nation Land (ENL) where other banks would not issue out loans.
He wondered how a bank that was established for a noble purpose can be ignored and not assisted to thrive under tough economic times.
Bennett first thanked the Central Bank of Eswatini (CBE) for intervening and roping in a consultant that would assist stabilise EswatiniBank as a development-oriented financial institution.
This is after the Central Bank announced in a public statement last week that it was doing this in its oversight function for all banking entities and that it was stepping in to provide enhanced support to the bank.
Bennett then wondered why government as the bank’s major shareholder was not making any meaningful intervention and supporting the bank to thrive in its role as a local development bank.
He said such could be in the form of making notable deposits into the bank instead of choosing other international banks or even literally extending a subvention to it.
“This appears as a serious matter looking at the fact that the Central Bank has made a meaningful intervention to stabilise the bank. Why is government so quiet in this matter? Should we wait until the bank that is very important to Emaswati crumbles?
“Where is a Parliament motion moving for the bank’s funding by government as they always address the national budget? EswatiniBank does not have the luxury of having branches internationally and thus sharing costs for any required improvement,” he said.
He felt the bank was being ignored by its major shareholder in the guise of free enterprise yet it clearly requires special treatment by government to survive.
“At what cost,” wondered Bennett, who also called for a public debate on the matter.
He noted that other banks with branches outside the country enjoyed the luxury of sharing costs with these other branches every time they need to develop modern software.
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He highlighted that EswatiniBank has just taken out a tender for the development of a software and that such will come with the burden of single-handedly footing the bill of this process with no international branches to assist the bank.
“Other banks have access to millions that is generated in its cross-border branches yet EswatiniBank only operates in the country. Offerings and tithes drive churches, how much more for a bank that is without access to millions like others? “When will our government learn to support locally bred entities such as EswatiniBank?
This is the same treatment that is extended to local businesses by government as they don’t get paid on time for services rendered to government. How often does the ministry of finance meet with the bank’s management and assess its situation?” he wondered.
Meanwhile, the Central Bank last week informed all stakeholders and the public that its intervention sought to bolster EswatiniBank’s operations and enhance service delivery through targeted advisory and capacity building as necessary.
It clarified that the process encompassed the identification and appointment of an experienced consultant to provide strategic support to the bank over the short to medium term.
The CBE also explained that the support would help identify additional measures to strengthen the balance sheet and improve the performance of the bank, which is consistent with its transformation programme.
At the heart of this intervention, the CBE pointed out that it was to ensure that EswatiniBank remains a strong and more resilient institution.
Additional Context
The debate around EswatiniBank reflects broader concerns about government support for local institutions versus reliance on international financial systems. The outcome of current interventions may shape the future role of the bank in national development financing.
