Stefanutti Stocks has been recognised not only as the contractor behind the now-controversial E2.79 billion Central Bank (CBE) of Eswatini headquarters project, but also as the country’s most tax-compliant large construction company.
The company was honoured as the most compliant taxpayer in the Construction industry in the large companies category at the Eswatini Revenue Service (ERS) Client Appreciation Awards held at Happy Valley Hotel on Friday evening.
The recognition comes at a time when the company is currently at the centre of public attention over its involvement in the Central Bank development, which remains the subject of ongoing litigation before the High Court.
The project has become the subject of an urgent High Court application brought by the Eswatini Consumer Forum (ECOF), which wants the Court to stop construction of the new CBE headquarters while it challenges how the multi-billion-emalangeni tender was awarded.
The Bank and the companies building the project, Ingcebo Joint Venture and Stefanutti Stocks, want the court to dismiss that application. They argue that construction is already well advanced and that stopping work now would cost millions of emalangeni, put hundreds of jobs at risk and expose the project to expensive legal claims.
While recent headlines have largely focused on court proceedings surrounding the project, Friday night’s recognition cast Stefanutti Stocks in a different light, highlighting its compliance with one of the most fundamental obligations expected of any corporate citizen, paying its taxes.
Receiving the award, the company’s Financial Manager, Welile Vilakati, said the accolade represents more than another corporate award, but reflects a philosophy that commercial success and responsible corporate conduct are inseparable.
“We are honoured to receive this recognition from the Eswatini Revenue Service. Compliance is at the heart of how we conduct our business and we believe responsible companies have a duty not only to deliver quality projects but also to fulfil their obligations to the country in which they operate,” Vilakati said.
He said the company regarded taxation as one of the principal ways through which the private sector partners with government in financing national development.
“Every company benefits from public infrastructure, public services and a stable operating environment. Paying taxes is one of the ways businesses contribute towards maintaining and improving those systems. We, therefore, view compliance as an investment in the country’s future rather than merely an administrative requirement,” he added.
Vilakati said the award belonged not only to management but to every employee within the organisation who had helped maintain strong governance systems and financial discipline.
He added that maintaining high standards of compliance required continuous investment in internal controls, accurate financial reporting and ethical business practices.
“We have built a culture where compliance is not treated as an event that happens when returns are due. It is embedded in the way we manage our finances every day. Recognition such as this confirms that those efforts are yielding positive results,” he said.
Besides its participation in the construction of the new Central Bank headquarters through the Ingcebo Joint Venture, the company is simultaneously involved in several other multi-million and multi-billion-emalangeni developments that are expected to shape the country’s transport and commercial infrastructure for years to come.
Among its flagship projects is the E2.67 billion MR14 and MR21 road upgrade being undertaken in partnership with WBHO, a development expected to improve transport connectivity between Sithobelweni, Maloma, Siphofaneni and surrounding areas.
The company is also constructing the E683 million MR25 Hlatikulu–Sithobelweni road, while undertaking the D29 Luve–Lugaganeni road project valued at approximately E400 million.
In addition, Stefanutti Stocks is responsible for bulk earthworks and transport infrastructure associated with the Manzini Mall development, one of the country’s largest private commercial investments.
Collectively, the projects represent several billions of emalangeni in infrastructure investment and place the company among the largest construction firms currently operating in the country.
Vilakati said the scale of these projects carried responsibilities extending beyond engineering and construction.
“When entrusted with projects of this magnitude, stakeholders expect more than technical excellence. They expect integrity, accountability and responsible corporate behaviour. We recognise that expectation and strive to uphold it in every aspect of our operations,” he stated.
He said the company remained committed to employing local people, working with local suppliers wherever possible and contributing meaningfully to the domestic economy.
The ERS Client Appreciation Awards celebrate taxpayers who consistently demonstrate exemplary compliance with the country’s tax laws. The annual awards recognise businesses and individuals who meet their tax obligations timeously while maintaining high standards of financial governance and transparency.
Vilakati said recognition from the country’s revenue authority reinforced public confidence in the company’s governance systems.
“Compliance builds trust. Whether it is government, clients, financial institutions or the communities in which we operate, confidence is strengthened when organisations consistently demonstrate transparency and accountability,” he said.
In court papers, the Eswatini Consumer’s Forum (ECOF) alleges that the procurement process was tainted by procedural irregularities and seeks to stop construction while the matter is heard.
Stefanutti Stocks Managing Director Billy-Joe Howes, in an answering affidavit before the High Court, argued that suspending construction would expose the project to substantial additional costs, disrupt hundreds of jobs and potentially result in claims from contractors and suppliers already engaged on the project.
According to the affidavit, maintaining a partially suspended construction site alone would cost about E300 000 every day, costs that would ultimately be borne by the Central Bank and, by extension, taxpayers.
Stefanutti Stocks says stopping construction would also affect employment.
According to the company, the project currently employs between 200 and 300 Emaswati as general labourers, while many others work as artisans, equipment operators, supervisors, engineers and administrative staff. It says more than 100 contractors and subcontractors are expected to join the project as construction progresses, widening the economic benefits for local businesses and workers.
Stefanutti Stocks says the project has already channelled about E279 million into the local economy through salaries, procurement and payments to local businesses, amounting to roughly 62% of the project’s declared revenue to date.
The company says this demonstrates that the development is generating significant economic benefits within Eswatini and rejects claims that foreign companies are the primary beneficiaries.
Howes also defended the procurement process, stating that the Ingcebo Joint Venture submitted the most competitive bid after both technical and financial evaluations were completed.
According to the answering affidavit, the consortium achieved the highest combined score among the shortlisted bidders while submitting the lowest financial proposal. The Central Bank and companies behind the project say unsuccessful bidders were given an opportunity to request a debriefing or challenge the tender award shortly after the results were announced, but none did so.
While those legal arguments will ultimately be determined by the High Court, Friday night’s recognition from the Eswatini Revenue Service highlights a separate aspect of the company’s operations, its record of complying with the country’s tax laws.
