EZULWINI – Concerns have arisen regarding the quality of bathroom facilities at the International Convention Centre and Five Star Hotel (ICC-FISH), with claims that millions worth of toilets are deemed sub-standard.
Independent News has been informed that the newly acquired ICC/FISH operator, Palazzo Hospitality, requests the government to make few changes to meet their specifications. Palazzo Hospitality boasts of an internationally acclaimed reputation but such a move potentially renders tax-payers’ money being flushed down the drain.
Among the alleged ‘snag list’ that Palazzo Hospitality sent to the government pertains to the changes in their bathrooms but there were no comments from the government. A snag list is a request document used in construction and project management that identifies defects, incomplete tasks, or quality issues that need to be addressed before the final handover of a project can be done.
The bathrooms were said to have been procured in Italy in 2017. At least E78 million unassembled bathrooms pods from Italy are said to have been procured for 283 hotel rooms. In 2019, Eswatini News (Times of Eswatini) reported that each of the bathrooms may cost E275 000, totalling E77 825 000 and were fitted in by a local company, ACS.
Some construction workers found on site said they were not aware of whether the bathrooms were all fitted-in on the convention centre wing, but did say that on the FISH wing, so far, only one room has been fitted as a sample.
A Member of Parliament (MP), who commented on the condition of anonymity said the bathroom fittings were only done at the convention centre, not the hotel.
The MP did not want to go into the details about the changes that the operator had allegedly requested from the government but referred the matter to the Ministry of Economic Planning and Development Portfolio Committee.
The committee’s Vice Chairperson, MP Masiphula Mamba said that he was not aware of the matter. He said information regarding the ICC/FISH works could be better obtained from the Minister of Economic Planning and Development, Dr Thambo Gina. Dr Gina referred the report to the Ministry of Tourism and Environmental Affairs.
According to sources, Palazzo Hospitality did not like the quality of the bathrooms, and therefore requested the government to procure and install new bathrooms that fit their specifications.
The Executive Director of the Coordinating Assembly for Non-Governmental Organisations (CANGO), Thembinkosi Dlamini, said there was nothing out of the ordinary with such a request.
Dlamini opined that in this case, it was normal to have a snag list before taking over a building after construction. Dlamini said that the taxpayers should not be expected to pay for the changes that come with the snag list.
He said the Construction Industry Council (CIC) should have an all-risk insurance policy for its construction members that should cover these kinds of costs, but it could not be verified.
“At this juncture, there should be an inquiry of establishing what are the reasons highlighted by Palazzo [Hospitality] in their snag list and then, the contractor via the all-risk insurance should cover the costs of tailoring the project to the client’ standard,” Dlamini said.
Dlamini was asked as to what could be the reason that the operator could reject the costly bathrooms. He said quality dictates by the operator varies. Making an example, Dlamini said that the operator may not necessarily uphold the standard required despite that the bathrooms were imported from Italy.
“It could be from Italy but you could find that it is of low standard yet the operator might prefer a premium standard,” he said.
The government spokesperson’s office was reached for comment on the matter, however, the Acting Government Spokesperson, Thabile Mdluli, referred this reporter to the Ministry of Tourism and Environmental Affairs.
The Minister of Tourism and Environmental Affairs, Jane Mkhonta-Simelane, responded through a text message and said that she was not aware of the matter. Also commenting on the matter was the Deputy Chairperson of the Ministry of Economic Planning and Development
Information sourced online states that Palazzo Hospitality was founded by Monther Darwish in 2019 who is originally from Saudi Arabia. Among their broad portfolio, Palazzo Hospitality specializes in managing luxurious hotels, residential buildings and lifestyle brands by providing strategic and operational expertise.
Palazzo Hospitality is also looking at operating hotels in Zanzibar, which will feature 45 villa resorts, a hotel in Dubai which will be located in a key business district and in the Island of the Maldaves.
Palazzo Hospitality has five luxurious hotel brands: Seotra Luxury Resorts and Hotels, Made Hotels, The Appointment hotels, Palazzo Versace Dubai and Enigma Palazzo Dubai. It is still not clear which brand will operate in Eswatini.
At its inception in 2012, the estimated costs of the project ICC-FISH construction stood at E370 million. Building the ICC was projected to cost the taxpayer a sum of E290 million while the estimated budget for FISH stood at E80 million. However, over the course of its construction, about E8.1 billion has reportedly been spent.
Then, the FISH was referred to as the millennium hotel. In the financial year (2012/2013), the government released E65 million and E80 million, respectively, for both the ICC and the hotel. Thirteen years later, the project is still ongoing, ballooning costs over the years.
During the 2015/2016 financial year, the money for the project began to escalate, when the estimated cost rose to E1.255 billion and the name of the millennium hotel changed to FISH.
In that financial year, an amount of E412 million was budgeted for both the ICC and FISH. In the 2016/2017 financial year, the projected cost of the project increased to around E1.9 billion; an amount of E479 million was released for the payment of consultancy fees, professional fees and works.
In the 2017/2018 financial year, the project’s total estimated cost went up to E2 489 590 000; and an amount of E721 800 000 was released for payment of consultancy fees, works and purchasing of land for the ICC&FISH.
In the financial year 2018/2019, the total estimated cost was hiked to E4.8 billion; with E522 million being released to pay for the ICC’s civil works, consultancy fees, furniture and fittings; and E989 million went to FISH.
In the financial year 2019/2020, the estimated cost of the project was first maintained at E4.8 billion; with the ICC set to cost around E2.5 billion and the FISH at approximately E2.3 billion. A total of E1 235 880 000 was released for construction, consultancy fees, and payment of value-added tax (VAT) for the ICC. For the FISH, E634 million (E170 million and E464 million) was released for construction of the hotel, payment of land acquisition, construction fees, design and supervision, civil works and landscaping, as well as VAT.
At the E4.8 billion cost, the ICC&FISH was already set to become the most expensive building in the entire African continent. The Ministry of Economic Planning and Development then revealed later that year in its second quarter performance that the project would cost E5 473 195 950.
This was an increase of E636 015 950 from the E4 837 180 000 projected in the Book of Government Estimates for that year. According to that performance report from the Ministry, the ICC cost had been revised to E1 902 441 160, while the FISH was set to cost E2 347 042 318. Bulk earthworks, piling, civil works and the patented wall will cost a combined figure of E576 143 393, while designs and supervision was set to cost E620 569 079.
This then totalled E5.47 billion. But when the 2020/2021 financial year came, the total estimated cost for the project again went up to E5.99 billion.
For the ICC, the estimated cost was put at E3 618 149 000; with an amount of E737 609 000 released for the construction of the main buildings, payment of consultancy fees, interior and settling VAT. The FISH, on the other hand, had its total estimated cost set at E2 375 587 000; and E240 million was released for the payment of land acquisition, payment of construction fees, design and supervision, civil works and landscaping as well as payment of VAT. Come financial year 2021/2022, which began on April 1, the total estimated cost of the ICC&FISH project was placed at E6 448 736 000.
This was about E400 million more than the E5.99 billion that was projected. The ICC alone was now set to cost E4 073 149 000 while the FISH’s cost had now been placed at E2 375 587 000.
The Book of Government Estimates at the time reflected that a further E1 billion had been allocated to the project for the 2021/2022 financial year. Of this E1 billion, an amount of E790 million was specifically for the construction of the ICC; and this figure consisted of consultancy fees, construction of the main buildings, the interior and payment of VAT. For the FISH, E305 million in local funds had been allocated for the completion of the hotel’s buildings. The actual expenditure (money already spent) for the ICC as at March 31, 2020, was reported to be E1.875 billion while E1.58 billion had been spent on the FISH.
For the year 2022/2023, the government pumped in E800 million where the Book of Estimates reflected that the money was categorised into two: E624 447 817 loan of funds and E176 million local funds. The E800 million allocation increased the estimated total cost of the project to about E7.3 billion, and this will escalate to E8.1 billion for the next financial year. It should be noted that while the nation awaits to see if the ICC will be completed in the next financial year as assured by the Finance minister, the annual performance report of the Ministry of Economic Planning and Development for the financial year 2023/24 mentions that the revised practical completion date is now December 2024.
For the financial year 2025/2026 government approved E800 million to complete the ICC/FISH.
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