THE ministry of housing and urban development says it had budgeted for this year’s Eswatini Urban Forum.
However, the Principal Secretary (PS) Dr Simon Zwane said the money was not readily available, yet the second edition of the event needed to proceed as planned.
He said an inter-governmental relationship that exists between the ministry and the local government permitted the informal transaction.
He said there was no law or regulation prohibiting such a transaction.
The PS said this when addressing concerns that the Mbabane Municipal Council should not have loaned the ministry about E1 million to cover immediate logistical costs for the Eswatini Urban Forum, which will be held at the Palazzo International Convention Centre in Ezulwini.
The event will commence today until Friday.
Before the ministry’s clarification, there were concerns from members of the public who were of the view that the transaction should not have happened, especially because the municipality was supposed to focus its funds towards projects that would benefit ratepayers.
Zwane stated that while the ministry had a budget for the forum whose date was known beforehand, municipalities also had budgets for the same event.
“The about E1 million that we requested from the Mbabane Municipal Council will be our contribution towards the event, otherwise the cost of hosting it is more than that,” he said.
The forum, hosted by the ministry of housing and urban development in collaboration with the Eswatini Housing Board (EHB) and local authorities, brings together government leaders, urban planners, development partners, professionals, communities and other stakeholders to discuss the future of housing and urban development.
This year’s edition will be held under the theme ‘Shaping Smart, Resilient and Inclusive Cities,’ and is expected to focus on issues relating to urban development and the creation of cities that are smart, resilient and inclusive.
Before the interview, Dr Zwane, in a press statement, dismissed the allegations published by an online platform that the municipality’s Chief Executive Officer (CEO) Gciniwe Fakudze and Minister of Housing and Urban Development Appolo Maphalala allegedly plotted to unlawfully divert about E1 million in ratepayers’ money towards the event.
He described the allegations of theft, misappropriation and improper conduct as false and misleading, maintaining that the transaction was a legitimate administrative arrangement between two public institutions.
According to Zwane, the ministry had formally requested the money from the Mbabane Municipal Council in writing as a short-term loan to meet the immediate logistical requirements for hosting the forum.
He said the transaction was supported by official administrative correspondence and that the ministry had committed to repaying the municipality, assuring residents and ratepayers that they would not suffer any financial loss as a result of the arrangement.
“The E1 million transaction was neither fraudulent nor an unauthorised diversion of ratepayers’ money,” Zwane stated.
He explained that the request for the funds was made by the ministry’s administration and not personally by Maphalala, contrary to the impression created by the publication.
The online article had alleged that Maphalala telephoned Fakudze to explain that government was struggling to secure adequate funding for the hosting of the Eswatini Urban Forum. It further claimed that Fakudze advised him to submit a formal letter, after which the municipality would release the money.
The publication also alleged that the transaction had been agreed upon during the purported telephone conversation before being formalised in writing.
However, Zwane rejected this account, insisting that the ministry followed the appropriate administrative process by submitting an official written request before the funds were released.
“There was never any phone call between the minister and the Mbabane Municipal Council CEO,” he said.
The principal secretary maintained that the written correspondence provided a record of the transaction and established the terms under which the money was advanced to the ministry.
He said the arrangement was intended to address immediate logistical needs associated with hosting the forum, which brings together stakeholders involved in urban development and local governance.
Zwane further assured Mbabane residents that the municipality’s money would be returned as agreed, emphasising that the transaction should not be portrayed as a criminal act in the absence of evidence supporting such allegations.
“The ministry of housing and urban development remains fully committed to transparency, accountability, and the prudent use of public funds,” he stated.
The ministry also condemned what it described as the sensationalist and defamatory manner in which the transaction had been presented, saying the publication misrepresented an administrative arrangement as a scheme to steal public money.
The ministry said the event would proceed as planned, despite the controversy surrounding the municipal loan.
Zwane reiterated that the ministry stood by its account of the transaction and assured residents that the funds would be repaid in accordance with the official correspondence.
