Six months ago, Minister of Labour and Social Security Phila Buthelezi announced a new board for the Eswatini National Provident Fund (ENPF), yet it has still not convened a single formal meeting.
The board was officially announced on October 8, last year, with Inyatsi Construction Chief Executive Officer Derrick Shiba appointed as chairperson.
However, as of this week, this publication can reveal that the board has not met even once to conduct business, effectively leaving the Fund without active oversight at a time of major policy transition.
What was initially expected to be a routine reconstitution of the ENPF Board has instead evolved into a protracted institutional deadlock, driven by deep divisions over governance, legal interpretation and the balance of power within the Fund.
At the heart of the impasse is a boycott by employer and employee representatives, who collectively form the majority of the board.
These representatives have withheld participation in board activities, citing unresolved concerns over governance and the circumstances surrounding the appointment of the chairperson.
They argue that appointing a chairperson from outside the traditional employer-employee structure risks altering the balance of influence within the Fund.
Their withdrawal has rendered the board effectively non-functional.
Sources within the Fund confirm that an initial meeting scheduled shortly after the announcement at Sibane Hotel collapsed due to non-attendance by these representatives.
Subsequent attempts to convene have not materialised, with the standoff persisting for months.
“The reality is that the board exists on paper, but not in practice. Without employer and employee representatives, there is no meaningful quorum, and therefore, no governance,” said one insider familiar with the developments.
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Traditionally, the chairmanship of the ENPF Board has alternated between employer and employee representatives, a practice widely regarded as essential in maintaining balance within a Fund financed primarily by contributions from workers and the private sector.
Shiba’s appointment broke from this convention.
Employer and employee representatives argue that he represents neither group and is not a public officer, raising questions about whether his appointment aligns with both the spirit and historical practice of the Fund’s governance model.
The Minister, however, has maintained that the appointment is lawful.
Relying on provisions within the ENPF Order of 1974, Buthelezi has argued that the law empowers him to appoint a board, including a chairperson and that no deviation from legal requirements occurred.
“I followed the law. If anyone has questions, they should get a lawyer to properly break down the law for them,” the minister said.
According to sources, the dispute is political, but rooted in a complex legal ambiguity.
The ENPF Order provides for the inclusion of ‘a person appointed by the Minister responsible for local government,’ a clause dating back to an era when the ministry of Local Administration existed.
That ministry no longer exists today.
This has created uncertainty over which ministry now holds that appointing authority and crucially, whether the provision allows for the appointment of a private-sector individual as chairperson.
Employer and employee representatives argue that this clause has been stretched beyond its original intent.
“The law may allow for interpretation, but institutions are not governed by technicalities alone.
They are governed by principles, and the principle here has always been representation of contributors,” they said.
The absence of clarity has turned what might have been a technical legal matter into a full-blown governance dispute.
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Beyond legal questions, the crisis reflects a deeper breakdown of trust between key stakeholders.
Employer federations had expected the chairmanship to revert to their ranks following the previous term, which was led by an employee representative.
When this did not happen, it triggered frustration and suspicion.
Employee representatives have since aligned with employers in questioning both the process and its implications.
Both sides issued a joint statement in December announcing that they would hold their participation in abeyance until their concerns are addressed.
While the statement did not publicly detail the specific issues, insiders have consistently linked the withdrawal directly to the chairpersonship dispute.
The timing of the board’s paralysis could hardly be more consequential, as the Fund is currently at the centre of a proposed transition into a compulsory National Pension Fund, a policy shift with far-reaching implications for workers, employers and the country’s broader social security framework.
The proposal, already before Parliament, has sparked a fierce dispute with the Public Service Pension Fund (PSPF), which argues that, in its current form, it would effectively undermine its viability.
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The ENPF, however, rejects this claim, maintaining that the two funds can coexist within the reformed system.
“There is a vacuum at the worst possible time. Major decisions are looming, but the body meant to provide leadership and accountability is not functioning,” said an insider.
There are also fears that prolonged instability could erode public confidence in the Fund, particularly among contributors whose savings underpin the institution.
Minister Buthelezi, however, has maintained that the ongoing impasse within the board has no bearing on the proposed transition.
“Board members do not debate in Parliament, so it is an attempt to conflate two separate issues,” he said.
BOARD COMPOSITION
The new board is expected to serve a three-year term.
Shiba has been appointed chairperson, with Business Eswatini CEO E. Nathi Dlamini designated as deputy chairperson.
Other members include Ministry of Labour Principal Secretary Makhosini Mndawe, acting Labour Commissioner Kingdom Mamba, Business Eswatini representative Tokky Hou, FESBC representative Prince Themba Dlamini, and employee representatives Philasande Mthethwa, Phendulile Zikalala and Wonder Mkhonza.
ENPF CEO Futhi Tembe serves as secretary to the Board.
