Lobamba- Some retired employees of the Eswatini Posts and Telecommunications Corporation (EPTC) are still receiving monthly pensions of as little as E300, decades after the pension fund was established in 1988, as the financially troubled corporation grapples with a deficit estimated at about E400 million.
The plight of the pensioners was brought before the Senate during consultations on proposed government loans for EPTC and the Eswatini Housing Board in October 2026, as stakeholders presented their views on the financial challenges facing the two parastatals.
Affected pensioner Mashesha Nhlengetfwa told senators that some pensioners were surviving on as little as E300, raising concerns about the adequacy of retirement benefits against the rising cost of living. The revelation adds a human face to EPTC’s pension crisis, which has left the corporation struggling to meet its obligations to hundreds of retired employees.
The pensioners’ predicament comes as the fund is reported to have been completely depleted, leaving EPTC to finance retirement payouts from its operational budget. The corporation is reportedly injecting E2 million every month to ensure that approximately 500 beneficiaries continue receiving their pensions.
The crisis has also raised questions about how a pension fund established to provide financial security in retirement reached a position where it has no independent assets to meet its obligations.
During the Senate consultations, Nhlengetfwa highlighted the experiences of pensioners whose retirement benefits have remained at levels set decades ago. For those who retired when the fund began in 1988, amounts ranging from E100 to E300 were worth considerably more than they are today.
However, the continued receipt of such amounts decades later has left some pensioners facing a difficult financial reality, particularly as the cost of basic necessities continues to rise.
The pension crisis is not new. It was brought into sharp focus in June 2026 when EPTC appeared before Parliament’s Public Accounts Committee (PAC), where lawmakers heard that the fund had effectively run out of money and depended entirely on the corporation to meet its monthly obligations.
During the PAC proceedings, EPTC management explained that the pension deficit predated the corporation’s establishment as a standalone entity after its separation from government operations.
The scheme operates as a defined benefit fund, meaning that eligible members are entitled to predetermined retirement benefits regardless of the fund’s investment performance. This arrangement leaves the employer exposed when the fund’s assets and contributions are insufficient to cover its obligations.
The situation has been compounded by a shrinking contributor base. Management explained that new employees stopped joining the defined benefit scheme in the early 2000s and were instead enrolled in alternative retirement arrangements.
Consequently, the number of active contributors declined while the number of pensioners continued to exceed the contributing membership. Information presented during the parliamentary proceedings indicated that the scheme had only 144 active contributors against more than 500 retired beneficiaries.
Acting EPTC Chief Executive Officer Fulatsa Sibanyoni acknowledged that the corporation remained under severe financial pressure and that efforts to implement a turnaround strategy were progressing slowly because of funding constraints.
Management also explained that EPTC supported three retirement arrangements: a defined benefit pension fund, a defined contribution fund and a provident fund. The latter two were described as fully funded because benefits are linked to contributions and investment returns, unlike the defined benefit scheme, which carries obligations that are not directly determined by its investment performance.
The corporation’s pension obligations have placed additional pressure on its finances, with management indicating that approximately E400 million would be required to fully fund the pension scheme.
In October 2026, the House of Assembly passed a loan Bill intended to support the financially distressed corporation. Lobamba Lomdzala MP Marwick Khumalo, who chairs the Finance Committee and moved the Bill, said the financial challenges facing EPTC had persisted for years and that the deficit had reached a critical point.
Khumalo said a US$26 million government loan guarantee, estimated at approximately E455 million, was necessary to assist the corporation, particularly in view of the pressure created by its pension obligations.
The proposed financing has raised broader questions about the long-term sustainability of EPTC, the protection of pensioners’ benefits and the management of public resources.
The corporation has also faced scrutiny over its handling of finances, procurement and employee relations. A parliamentary select committee examining EPTC’s restructuring operations reportedly identified concerns about procurement practices, staff loan benefit calculations and allegations of intimidation against employees who questioned management decisions. The committee called for a forensic audit.
Separately, allegations have emerged that EPTC management authorised a 30 per cent discount on an outstanding debt owed by Eswatini Mobile, allegedly exceeding the board’s permitted discount threshold of between 15 and 20 per cent. The concession was reported to have resulted in more than E13 million being written off without the required authority or consultation.
These allegations raise questions about the corporation’s financial controls and whether decisions taken by management may have contributed to its financial difficulties. However, the claims require assessment against the relevant board records, investigation findings and responses from the parties concerned.
EPTC has also been the subject of allegations involving suspected fraud, conflicts of interest and the handling of its digital platforms. Suspended Corporate Affairs Manager Ncobile Magagula reportedly faced disciplinary charges, including allegations that she registered a private family business, Zinoky Investments, to secure business from EPTC and that she improperly took control of the corporation’s official Facebook page under a private account identified as ‘Zinokysunday’.
These remain allegations and should not be treated as established wrongdoing unless substantiated through the appropriate disciplinary or judicial processes. The circumstances and current status of the proceedings would need to be confirmed with EPTC and the relevant authorities.
Further concerns have been raised about alleged internal cybercrime and fraud schemes that reportedly cost the corporation millions of Emalangeni. The precise losses, the findings of any investigations and the identities of those responsible would need to be established through official records.
Employee relations have also come under scrutiny following reports that EPTC issued retrenchment letters to workers despite parliamentary concerns about job losses while the government-backed financing package was being considered.
During the October debate on the loan Bill, the new management reportedly assured lawmakers that there were no plans to retrench employees. However, it remained unclear whether the assurance covered employees who had already received termination letters and had been contesting the proposed job cuts.
The issue raises questions about the relationship between the corporation’s financial rescue, the protection of existing jobs and the use of public funds to stabilise the utility.
For pensioners such as Nhlengetfwa, the immediate concern remains whether the corporation can secure a sustainable source of funding for retirement benefits and whether those who retired decades ago can continue to survive on pensions that have lost much of their purchasing power.
While the proposed government financing is intended to help stabilise EPTC, the pension crisis highlights the need for clarity on how the money will be used, how the fund will be restored and what safeguards will prevent a recurrence of the current situation.
The Senate consultations on the proposed loans for EPTC and the Eswatini Housing Board provide lawmakers with an opportunity to scrutinise the financial implications of the Bills and consider the concerns of affected stakeholders.
For the pensioners, however, the central question remains whether decades of service will translate into retirement benefits sufficient to meet their basic needs.
Discussion about this post