Members of Parliament (MPs) want government to explore the feasibility, in the short to medium term, of utilising EswatiniBank to hold or manage certain government funds such as payments for international subscriptions, suppliers’ payments, and SACU receipts.
They want this to be done without undermining or interfering with the Central Bank of Eswatini (CBE)’s primary role as government’s banker.
This, according to the MPs, is part of what could be a bailout to the ailing bank and is contained in a motion to be moved by Mbabane East MP Welcome Dlamini and seconded by his Ngudzeni counterpart Charles Ndlovu in Parliament’s next sitting.
This comes after a revelation by the bank’s Managing Director (MD) Nozizwe Mulela, who disclosed that the savings and development bank needs approximately E300 million in recapitalisation so as to address its current financial challenges.
Mulela made the remarks on Thursday when parastatals under the Ministry of Finance were before the Public Accounts Committee (PAC).
She dispelled speculation surrounding the bank’s financial position, saying misinformation and negative perceptions were damaging the financial institution’s reputation.
Mulela said reports to the effect that the bank required E800 million were inaccurate, explaining that what the financial institution needed was recapitalisation, rather than a bailout for operational expenses.
According to the motion, the MPs will move that the honourable House, noting the public statement by the CBE announcing the provision of enhanced support to EswatiniBank, citing the need for “prompt correction,” “strategic support,” and a “structured transformation programme,” call upon Minister for Finance Neal Rijkenberg to make a comprehensive statement to Parliament within 14 days, detailing the above in part.
The minister will further be called upon to detail a clear, time-bound turnaround and recapitalisation strategy to be implemented by government, as the principal shareholder, to ensure the long-term survival, stability, and sustainability of EswatiniBank.
“This strategy should include appropriate flexibility for the bank, such as authority to issue bonds and other forms of capital raising as well as government guarantees or other credible support mechanisms to facilitate access to funding from lenders,” reads the motion.
The minister will also be called upon to detail government’s plans to reaffirm and strengthen EswatiniBank’s strategic role in advancing national development priorities, particularly by enhancing access to finance for critical sectors, including agriculture, small and medium enterprises (SMEs), infrastructure development, and youth empowerment initiatives.
The minister should also provide a structured reporting programme requiring him to provide an annual status update on EswatiniBank, particularly the liquidity position, during presentation of the Budget Speech to Parliament.
On another note, MP Dlamini plans to move a motion that Minister for Labour and Social Security Phila Buthelezi, in collaboration with the ministries of finance, economic planning and development as well as education and training, be called upon to urgently present to Parliament within 30 days a comprehensive report on unemployment detailing:
• The root causes of the country’s exceptionally high unemployment rate.
• A sector-by-sector analysis of job creation performance and barriers.
• The effectiveness of existing youth employment, skills development, and enterprise development programmes.
• Comparative analysis with peer countries that have successfully reduced unemployment.
