Mbabane – There is loophole in Finance Circular No. 2 of 2013 that could easily be manipulated, resulting in Cabinet Ministers and Presiding Officers driving home cars costlier than those of their predecessors which were capped at E800 000. Independent News has reliably learnt from its well placed sources that Cabinet Ministers once mooted that government should buy them Toyota Land Cruiser Prado Sports Utility Vehicles (SUVs) – 3.0DTVX-L, instead of the BMW X5s. According to autotrader.co.za, the minimum cost of the above described vehicle is E1 010 000. For all the ministers and presiding officers, tax payers could fork out over E24 million.
Politicians are currently remunerated based on Circular No.2 of 2013 following that Circular No.3 of 2019 was differed indefinitely. This means they will be entitled to all the benefits and allowances as provided in the instrument. Ministry of Finance Communications Officer, Setsabile Dlamini confirmed to Independent News that finance Circular No.2 of 2013 remains the only valid instrument that government is using for the remuneration of politicians, following the suspension of the Circular No.3 of 2019, which would be the guiding tool for politicians’ benefits.
“The Royal Commission had been requested to align certain provisions which were inconsistent but then it was indefinitely suspended,” said Dlamini. Chairman of the Royal Commission, Dr Phil Mnisi confirmed that the enactment of the Circular was suspended, but without giving further details. The Commission’s terms of reference were to review the terms and conditions of service for politicians of the 11th Parliament, statutory boards and commissions.
Government Spokesperson Sabelo Dlamini reiterated that while the Financial Circular No.2 of 2013 was under review, politicians would continue to be remunerated on same. Dlamini recapped that there were certain provisions in the Circular that were being reviewed and possibly amended, and until then, the Circular was in full force. “Politicians continue to be paid based on the Circular as there is no other instrument that can be used, keeping in mind that the recently adopted one, Financial Circular No.3 of 2019, which would be a guiding tool for politicians’ packages was also suspended until further notice” said the government spokesperson.
He said it is envisaged that by the time the politicians finish their term of office in 2023 the review of Circular No.2 of 2013 would be complete and it would be clear how politicians would be remunerated.
Presiding
Doubtlessly, based on the above facts, the ministers and the presiding officers could successfully drive home their alleged desired cars if the clause in the circular that reads, “The Presiding Officers and Ministers will be allocated sports utility vehicles (SUV’s) upon taking office. The Swaziland Government will carry the once off cost of acquiring the motor vehicles directly from the vehicle manufactures and/ or their dealerships.
The value of the benchmark SUV will not exceed E800 000; and the total purchase price per motor vehicle must include Value Added Tax (VAT), accessories and a comprehensive motor plan. In the event that the respective parliamentarian chooses a lesser value motor vehicle than that of the benchmark vehicle; he or she will not be entitled to the monetary difference. Nor will the parliamentarian be allowed to pay part of the excess value should the motor vehicle exceed the benchmark vehicle cost.” Currently, the Prime Minister Ambrose Mandvulo Dlamini, and his deputy, Themba Masuku, Cabinet Ministers and Presiding Officers (Senate President Lindiwe Dlamini and House of Assembly Speaker, Petros Mavimbela) are not chauffeured in cars which were specifically bought by government at the beginning of their term of office. Instead, they were allocated cars belonging to government.
These was due to the fact that wasteful government was facing cash-flow challenges at the time. The politicians were promised that they will get their cars once government’s cash-flow challenges were over. It is almost two-and-half years now, they are without their official cars. Analytically, according to the clause “Nor will the parliamentarian be allowed to pay part of the excess value should the motor vehicle exceed the benchmark vehicle cost” government can be forced to buy ministers and the presiding officers cars worth more than the E800 000 benchmark. Again, the Circular states that government will cover the cost of insuring the motor vehicles whilst in office. The motor vehicle may be fuelled at any of the Central Transport Administration (CTA) centres situated in Eswatini. At the end of the term, the respective parliamentarian will be allowed to purchase the motor vehicle at the depreciated value. However, at such time, the fuel benefit will fall away.
Regarding the purchasing of the cars at the depreciated value, it would be interesting to see if that clause would be followed to the letter because the previous Cabinet did not. Instead, some ministers did not buy the vehicles at the end of their term of office despite that they were bought them half way through after their appointment. Those were former Minister of Public Service Owen Nxumalo, former Minister of Justice and Constitutional Affairs Edgar Hillary and Christopher Gamedze, former Minister of Tourism and Environmental Affairs. However, Attorney General, Sifiso Mashampu Khumalo holds a different view. He told Independent News that, if the purchasing of the vehicles goes ahead without a review of Circular No.2 of 2013, it would conflict with the set value benchmark of E800 000 for each of the ministers’ cars.
Speculation
“For now, it can only be speculation that the ministers will drive around and eventually take home the luxury cars at the end of their terms of office seeing that there is no instrument in place permitting the purchasing of the cars,” said the AG, adding that as of now the matter is only wishful thinking on the part of the ministers and will not necessarily come to pass.
The AG mentioned that it was only through the grapevine that he heard of the request of the ministers to be bought Toyota Land Cruisers and so he was not in a position to comment on something unofficial. He said the issue of the Land Cruisers SUVs was neither here nor there seeing that their price is above what is provided in the Finance Circular No.2 of 2013 and it was not possible to see how Parliament could approve their purchase. “A review of the Circular would definitely be necessary before the purchase can be approved,” said the AG, adding that besides the standing price of E800 000, there was an inclusion of the total purchase price per motor vehicle value added tax (VAT), accessories and a comprehensive motor plan.
Former and late Prime Minister, Dr Sibusiso Barnabas Dlamini and his Cabinet were chauffeured in top of the range sport utility vehicles, which according to the BMW South Africa Group price list, the standard model of the BMW X5 X-Drive 25D cost E974 100 and the price went up to E1 042 900 for a performance model.
Members of Parliament and other politicians voiced different views with some saying the economic crisis of the country, which has been exacerbated by the advent of the Covid-19 pandemic did not allow the purchase of the vehicles. Even before the outbreak of the Covid-19 pandemic, the country was already sailing through depression which resulted in budgetary cuts in many areas, all in effort to resuscitate the economy. Sharing his view, Matsanjeni North Member of Parliament, Phila Buthelezi ,said it was only fair that the ministers be driven around in the SUV Prados because they were at par with their high ranking positions, but shared the sentiments with the AG that the Circular would have to be amended first, especially on the motor vehicle allowance for the politicians.
“This would help in ensuring that the Circular is not violated,” said the MP, who is also the Public Accounts Committee (PAC) Chairman. Emabandla Meanwhile, government is expected to spend at least about E112 million in reimbursing the rest of the parliamentarians and full-time Emabandla for the new cars they will purchase through a guaranteed vehicle loan scheme which government has with financial institutions. These politicians will be allowed to purchase vehicles that are valued at a maximum of E650 000. Government will then give an annual motor vehicle allowance of E105 000 to each of these parliamentarians for five years, which will add up to E525 000 for each of the 214 politicians, bringing the total cost to government to E112 350 000.
Framework
Meanwhile, the framework states that the loan may not exceed the actual cost of the vehicle to be purchased. This provision also applies to parliamentarians appointed to cabinet, or as presiding officers or regional administrators. However, they will not be entitled to a motor vehicle allowance to meet the running costs of their private vehicle. The remuneration framework further states that if parliamentarians or full-time Emabandla are offered discounts of more than 10 per cent by motor dealers or more than 15 per cent by vehicle manufacturers, the parliamentarians or full-time Emabandla shall declare the said discount in terms of the principles of the Leadership Code set out in the constitution of the Kingdom of Eswatini.
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