Lobamba– Government has been blamed for contributing to the Eswatini Posts and Telecommunications Corporation (EPTC) pension crisis.
Senator Tony Sibandze was alleging that the required contributions were not being made, leaving retired employees facing uncertainty over their benefits.
“It has been revealed that EPTC is not solely to blame for the pension crisis. There was an agreement between Government and EPTC under which Government was supposed to pay what it owed to EPTC, with the money directed towards the pension fund. However, Government failed to honour this agreement over time, contributing to the crisis. This is why Government had to provide a guarantee for the loan.”
Sibandze raised the concern in the Senate on Wednesday, October 28, 2026, while moving that the House adopt the Portfolio Committee on Finance’s report on the International Bank for Reconstruction and Development (Eswatini Posts and Telecommunications Corporation) Loan Guarantee Bill No. 13 of 2026.
The Bill provides for Government to guarantee a US$26 million (approximately E455 million) loan from the World Bank’s lending arm, the International Bank for Reconstruction and Development (IBRD), to assist EPTC in addressing its financial obligations, including its pension liabilities and the Digital Eswatini Project.
During the debate, Sibandze questioned Government’s contribution to the pension scheme, alleging that it had failed to put in what it was supposed to contribute. His remarks brought renewed attention to the circumstances that led to the pension crisis and the responsibility for ensuring that former employees receive the retirement benefits owed to them.
The pension scheme’s deficit has been estimated at between E390 million and E400 million, with the corporation reportedly using about E2 million from its operational budget every month to sustain pension payments. Some retired employees have reportedly been receiving as little as E300 per month, raising concerns about how they are expected to meet their basic needs.
The proposed loan is expected to help address the outstanding pension liabilities while supporting the corporation’s digital infrastructure development. However, the Senate debate highlighted the need for the funding to translate into tangible relief for pensioners and improvements in services for emaSwati.
Senator Sicelo Dlamini commended Senate President Lindiwe Dlamini for her leadership during debates on the Bills, saying the discussions had helped senators understand the legislation better.
She also raised concerns about the fate of pension benefits belonging to former employees who had died before receiving the money owed to them.
Dlamini wanted to know whether the relatives of deceased pensioners would receive the benefits, highlighting the uncertainty facing families whose loved ones had worked for the corporation but died before their pension matters were resolved.
In response, Sibandze assured the Senate that relatives of deceased pensioners would receive the benefits owed to them, explaining that records were available to support the payments.
The assurance will be important to families awaiting outstanding benefits, although the arrangements and timelines for settling the claims remain matters that need to be clarified.
Sibandze also raised allegations concerning the theft of copper from EPTC, bringing the corporation’s security and management challenges into the discussion. The allegations require verification and should be investigated through the appropriate processes.
Meanwhile, Senator Dr Linda Nxumalo questioned what practical changes emaSwati could expect following the proposed loan, particularly regarding service delivery.
She cited internet affordability as an example, asking what difference the financial intervention would make to ordinary customers who depend on telecommunications services for communication, business and access to information.
Her concern centred on whether the loan would deliver visible benefits to the public rather than merely address the corporation’s financial difficulties.
Senator Isaac Magagula said the loan should help restore EPTC to its former glory. He also commended Government for providing the guarantee that would enable the corporation to access the financing.
Under the arrangement, EPTC would be responsible for repaying the loan, while Government would stand as guarantor. If the corporation failed to meet its repayment obligations, the guarantee could expose public finances to the resulting liability.
Repayment is scheduled to begin in June 2034, giving EPTC a period before repayments commence. The corporation will nevertheless need to strengthen its financial position to ensure that it can meet its obligations when repayment begins.
The pension crisis has persisted for years, with the scheme facing a substantial funding shortfall and pressure from pension payments. The situation has affected retired employees who depend on their benefits for their livelihoods, while the monthly payments have also placed a strain on EPTC’s operational finances.
The proposed financial intervention is intended to address these pressures and support the corporation’s digital development. However, senators’ questions point to broader expectations around accountability, the payment of outstanding pension benefits and the prevention of a similar crisis in the future.
For former employees and the relatives of deceased pensioners, the central concern remains when the money owed to them will be paid. For other emaSwati, the expectation is that the loan will result in better and more affordable telecommunications services.
The effectiveness of the intervention will ultimately depend on how the funds are managed, whether outstanding obligations are settled and whether EPTC can improve its financial sustainability without transferring an avoidable burden to taxpayers.
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