LOBAMBA – The government has already spent an estimated E3 billion on the International Convention Centre and Five Star Hotel (ICC and FISH) project, which was initially budgeted at E300 million. Despite the huge investment, the Ministry of Economic Planning and Development has admitted that the final cost of the project remains unknown.
Principal Secretary Thabsile Mlangeni revealed the uncertainty before the Public Accounts Committee (PAC) on Tuesday when she appeared to answer questions arising from the Auditor General’s Compliance Audit Report. She told MPs that her ministry could not yet provide the full expenditure figures or the amount still required to complete the project.
Mlangeni requested two weeks to prepare a detailed report outlining all costs associated with the ICC and FISH development. The compliance audit report, tabled in Parliament four weeks ago, had already raised questions over the spending patterns and delays surrounding the project.
PAC Vice Chairman and Nhlambeni MP Manzi Zwane said the cost escalation from the original E300 million to billions was deeply concerning. He recalled that the figure was first presented by Patrick Mnisi, the Director of the Millennium Projects Unit, when the project began in 2013. However, subsequent reports show costs have surged over the years.
According to the Auditor General’s findings, the cost had reached E980 million by 2018. When the project components were later separated, the hotel’s estimated cost stood at E1.8 billion, while the convention centre was valued at E1.7 billion, pushing known expenditure to more than E3.5 billion.
“So, how much exactly has been spent on this project?” Zwane asked during the session, questioning the lack of a clear financial breakdown.
Matsanjeni South MP Sabelo Ndlangamandla reminded the Committee that Minister of Economic Planning Dr Tambo Gina had, over the last three financial years, requested close to E2 billion for the project’s continuation, suggesting that additional funding would still be required to bring it to completion.
Project civil engineer Aaron Motsa also addressed the Committee, saying that determining the total expenditure was complex due to several fluctuating factors. He revealed that the structure alone had cost over E2.1 billion, while the earthworks budget rose sharply from E80 million to E500 million.
Motsa further disclosed that E111 million had been paid in penalties for delayed payments, and design fees had increased dramatically from E8 million to more than E200 million. These variations, he said, contributed significantly to the overall cost escalation of the project.
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