Times Of Swaziland: GOVT SPENDS E54.8M ON STALLED PROJECT

GOVT SPENDS E54.8M ON STALLED PROJECT
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BY MFANUKHONA NKAMBULE on 27/09/2020 16:17:00


mfanukhona@times.co.sz
MBABANE – The project site where a Strategic Oil Reserve Facility was to be
built at Phuzumoya is now full of thick vegetation.
It is now a grazing land.
However, it has been established that government, as at March 31, 2019, had
spent a sum of E54.89 million on the project, which was suspended three years
ago.
Despite its suspension, the Ministry of Natural Resources and Energy continued
to spend taxpayers’ money on the project.
This has been evidenced by government’s engagement of a Taiwanese company to
review and update designs for the storage facility.
The company styled CTCI Corporation was paid E14.5 million for this job. It must
be said that Kantey & Templer (Pty) Ltd had spent E5 million on the designs,
which have been reviewed at a cost of E14.5 million.
reviewed and updated
The reviewed and updated designs were submitted to the ministry last year.
Senator Peter Ndumiso Bhembe, the Minister of Natural Resources and Energy,
allowed this publication to view them at the office of the director of energy,
Thabile Nkosi.
It could not be ascertained how and where the ministry spent the E54 million but
money was utilised for tarring a two-kilometre road leading to the project site.
Another project, which is a sorry sight, is the Sicunusa-Nhlangano road where
about E700 million was spent, which Auditor General Timothy Matsebula described
in his report as a grazing land. The project is incomplete as well.
Sikelela Dlamini, the Secretary General of the Swaziland National Association of
Teachers (SNAT), said it was possible that the expensive designs produced by the
Taiwanese company would gather dust at the Ministry of Natural Resources and
Energy.
He said it was probable that government would need to review the designs again
by the time it was ready to commence the project.
Dlamini complained that the country failed to set priorities for its development
initiatives.
“Government doesn’t prioritise its projects. In fact, government comes up
with good projects but doesn’t involve the people, hence the projects do not
have the representation of the masses,” he said.
The secretary general said it was a reality that people were not briefed on the
significance of the Strategic Oil Reserve project.
“Perhaps, if you were to ask them about the strategic oil reserve, they
won’t give you an answer because they don’t know anything about it,” he
said.
Dlamini further said people might be more interested in the improvement of
agriculture than the strategic oil depot that was to carry 80 million litres of
fuel.
Investigations by this publication unearthed that one of the financiers felt it
would not be able to offer two loans to Eswatini to undertake the projects
simultaneously.
The Ministry of Natural Resources and Energy has two main projects in the
pipeline –thermal power and strategic oil reserve depot or facility.
At the moment, sources allege “government does not have a financier for the
oil depot project.”
As a result, it has been established that government has opted to start with the
thermal power project, meaning the four designs produced at the cost of E14.5
million will not be implemented anytime soon.
different phases
Each of the four designs produced by CTCI Corporation addressed different phases
of the project. Kantey & Templer (Pty) Ltd, which was awarded the tender for the
construction of the strategic oil depot about six years ago, spent E5 million on
designs, which the Taiwanese company has since reviewed and updated.
The Times SUNDAY reported last year that Bertram Stewart, the then Principal
Secretary in the Ministry of Economic Planning and Development, blocked the
Ministry of Natural Resources and Energy from diverting E15 million for a water
project to the Strategic Oil Reserve facility.
Stewart, now the Principal Secretary in the Ministry of Education and Training,
blocked the diversion of the money through a memorandum dated August 8, 2018.
This newspaper can now reveal that the Ministry of Natural Resources and Energy
finally paid for the designs, which are presently kept at the Director of
Energy’s office. It could not be ascertained if the money was sourced from the
Water Fund or elsewhere but CTCI Corporation was engaged last year for the
project.
rehabilitation
Audited statements indicate that a sum of E9 175 914.90 was paid to CTCI
Corporation on March 14, 2019 for phase one of the project, which entailed
rehabilitation of DWA Laboratory (review and update of existing preliminary
designs and detailed estimates).
On March 28, 2019, payment of E432 240.62 was made for the same project (review
and update of existing preliminary designs and detailed estimates).
On March 14, 2019, a sum of E3 890 165.62 was also released to the Taiwanese
company.
The Eswatini National Petroleum Company, which was not established by any Act of
Parliament just like all public enterprises, received a subvention of E1 million
for the same project.
In his report for the financial year ended March 31, 2019, the auditor general
had observed that capital expenditure amounting to E127.55 million was not
captured into the Government Accounting System, and was neither accounted for by
the accountant general.
expenditures were omitted
Timothy Matsebula, the Auditor General, observed that these capital project
expenditures were omitted from financial statements for the financial year
2018/2019. As such, he said the statement of detailed capital expenditure did
not reflect a true picture of all funds received and disbursed in the financial
year under review.
Thabile Nkosi, the Director of Energy, said CTCI produced four detailed reports,
which addressed four different phases of the project, hence the payment of the
varied amounts of money.
new designs
Peter Bhembe, the Minister of Natural Resources and Energy, said his ministry
received the new designs last year. He said his ministry was still looking for a
company to construct the facility in line with the designs prepared by the
Taiwanese company.
The minister conceded that Taiwan felt it could not offer loans to Eswatini for
two projects, with his ministry, therefore, opting to start with the thermal
power project.
He said the designs for the thermal power project, which seeks to address energy
self-sufficiency by 2025, would be done by Taiwanese experts at their cost.
Bhembe pointed out that the Strategic Oil Reserve would be constructed in
phases.
“The actual cost for the project will definitely be reduced from the current
estimated cost of E3.2 billion,” he said.
Initially, the project’s cost was E900 million.
This newspaper reported two months ago that a sum of E10 million was almost
allocated to the Eswatini National Petroleum Company.  Members of Parliament
stopped the allocation of the money to the company.
The company wanted to channel the money to the construction of the Strategic Oil
Reserve.
The House of Assembly’s Portfolio Committee for the Ministry of Natural
Resources and Energy is said to have stopped the allocation on the basis that
the company was illegal because there was no Act of Parliament or gazetted Order
establishing it.
now known
The company is now known as Eswatini National Petroleum Company (ENPC). The
company, whose directors included the former Minister of Natural Resources and
Energy, Princess Tsandzile and Thembinkosi Mamba, the former Principal
Secretary, was formed in 2012.
Two years later, government engaged Kantey & Templer Eswatini in 2014 to
construct the facility at Phuzumoya in the Lubombo Region. However, the BOOT
(Build Own Operate and Transfer) agreement, which could have helped Kantey &
Templer to access loans for the construction of the facility, was signed on
April 5, 2017.
Other directors of the ENPC are Thabile Nkosi, the Director of Energy in the
Ministry of Natural Resources and Energy, Thabiso Masina, the current Director
of the Deeds Office. The Deeds Office is under the Ministry of Natural Resources
and Energy.
The directorship also includes Joseph Themba Shilubane, Themba Mngadi and
Armstrong Dumisa Dlamini.
A document in our possession indicated that Princess Tsandzile and Mamba
(Thembinkosi) resigned from the company on August 9, 2018. Asked about the
existence and objective of the company, Princess Tsandzile expressed shock that
her name was registered as a director.
“I don’t know anything about this company. I have to check the documents to
ascertain how my name was included,” she was quoted by this newspaper.
The former minister pointed out that it was the first time she heard of a
company styled Swaziland National Petroleum Company.
It is not clear where the company is based as Auditor General (AG) Timothy
Matsebula also claimed he did not know it.
However, Matsebula found that the same company was given a subvention of E1
million. It claims to be a category A public enterprise.
“I have to investigate the matter. Is it a government company? I don’t know
it,” Matsebula had said.
infancy stage
Busangani Mkhaliphi, the Director of Public Enterprises Unit (PEU) under the
Ministry of Finance, said she was aware of the company, and assumed it was at
its infancy stage.
She said she had seen its financial statement. Asked why she entertained its
financial statement, she said “it uses public funds.” She then referred
enquiries to Nkosi, the Director of Energy.
Former Principal Secretary in the Ministry of Natural Resources and Energy
Winnie Stewart claimed the Petroleum Bill had since been gazetted and the
ministry was undertaking consultations with the Parliament Portfolio Committees.
She said the ministry noted the Times SUNDAY’s questions, kindly requesting
that the finalising of the Bill be respected. She then clarified that the
Swaziland National Petroleum Company is the same as Eswatini National Petroleum
Company. She mentioned that the company exists and was incorporated through the
laws of the country in 2012.