Mbabane- A major contradiction has emerged within the Ministry of Housing and Urban Development over the E1 million borrowed from Mbabane Municipal Council, after Finance Minister Neal Rijkenberg told Parliament that Housing Minister Apollo Maphalala had dismissed reports of the loan as untrue, despite an official statement from the ministry acknowledging the transaction.
The discrepancy came to light in the House of Assembly on Thursday when Rijkenberg responded to a point of clarity raised by Lobamba Lomdzala Member of Parliament Marwick Khumalo, who questioned whether ministers could borrow money from municipalities without the authority of the Minister of Finance.
Rijkenberg said Maphalala had dismissed the reports as social media allegations when the two discussed the matter. The Finance Minister also maintained that only the Ministry of Finance could raise funds for government.
However, the ministry’s Principal Secretary, Dr Simon Zwane, had already issued an official press statement explaining that the E1 million was a short-term, fully reimbursable administrative loan from the municipality to cover immediate logistical and hosting costs for the Eswatini Urban Forum held at the Ezulwini Palazzo International Convention Centre.
The statement explained that the ministry had budgeted for the event, but the funds were not immediately available. It maintained that the transaction was processed through official correspondence and assured Mbabane residents and ratepayers that the full amount would be repaid.
The contrast between the minister’s reported response to Rijkenberg and the Principal Secretary’s written explanation raises questions about the communication within the ministry over the transaction and the circumstances under which the money was obtained.
It also puts the spotlight on the procedures governing financial transactions between central government and local authorities, particularly whether the transfer required approval from the Ministry of Finance.
With the Finance Minister maintaining that only his ministry can raise funds for government, the central question is whether the E1 million arrangement complied with the applicable legal and financial requirements.
The ministry has maintained that the money will be repaid, but the conflicting accounts have placed the circumstances surrounding the transaction under parliamentary scrutiny.
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