Times Of Swaziland: MPS TO EACH GET E441 000 TAX FREE

MPS TO EACH GET E441 000 TAX FREE
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Mfanukhona Nkambule on 09/07/2023 18:38:00


MBABANE – Legislators will continue to get their salaries after the
dissolution of Parliament.
When government stops payment of their salaries around November 2023, a
re-elected or unelected MP is guaranteed a payment of a tax-free pension grant
of E441 000. A minister stands to receive E607 000 tax free. It must be said
that the remaining two-thirds for the backbenchers, the equivalent of about E882
000, shall be taxable. The E441 000 represents one-third of their contribution
to Members of Parliament and Designated Office Bearers Pension Fund (MOPADO).
One MP said the principal benefit of being a legislator has always been the
pension payment.
payment
“This is the money we use to buy tractors and build bedsitters. You can build
two or three decent bedsitters at a cost of E400 000,” said the MP who chose
to speak about the pension payment on condition of anonymity. “You can then
use the salary you have been earning after the dissolution of Parliament to pay
the builder.” He urged his colleagues to use this money wisely. “This money
is not for alcohol or spending on entertaining friends,” he warned. On a
monthly basis, a pension contribution of 15 per cent of a parliamentarian’s
basic salary is deducted and government contributes 30 per cent. It effectively
means that 45 per cent of the MP’s basic salary of E49 000 is contributed to
the fund. The legislator invests E22 050 per month, translating to E1 323 000
over a period of five years. Conservatively, the 103 parliamentarians contribute
over E136.269 million to the fund.
benefits
The parliamentarians pension is a defined contribution fund limiting the
participant benefits to their contributions, while the Public Service Pensions
fund is a defined benefit plan. The funds cannot be drawn against for any
purpose whatsoever. This is in compliance with the terms and conditions of the
Retirement Funds Act. At the conclusion of the term of office, it is provided in
Finance Circular No.2 of 2013 that one third of the benefit can be payable as a
lump sum. Before the amendment of the law governing MOPADO, the remaining
balance was payable upon the member reaching the retirement age of 55. However,
it has been established that the member starts to receive the pension
immediately after finishing his or her termof service in Parliament.
invest
Lobamba Lomdzala MP and Chairperson of MOPADO Marwick Khumalo could only say
that, if a member would not want to start drawing down his or her pension, he or
she would be at liberty to invest his money and earn interests. He said the
reinvestment of the money was usually considered by the reelected legislators.
It has also been learnt that the parliamentarians are insured as part of the
fund against accidents and death in terms of a contract concluded by government
with an insurance company. The insured benefits include, group life insurance of
two-times annual salary in the event of death of a member while in office.
assistance
The benefits also include disability cover for a member while in office and
funeral assistance of E20 000 for a member, spouse and children while legislator
is still in office - and E20 000 for the member thereafter. Minister of Finance
Neal Rijkenberg confirmed that the parliamentarians would continue to receive
their salaries until a new Parliament has been put in place.
emergency
“This is correct. The Constitution allows them to be recalled in case of an
emergency if I am not mistaken,” the minister said. MPs are also entitled to
medical aid, which covers all medical costs incurred. In South Africa, all
members who qualify for the Political Office-Bearers Pension Fund receive a
gratuity of four months pensionable salary for every five years of service. The
Political Office-Bearers Pension Fund is a defined contribution arrangement. It
means that each month the fund receives contributions from the State and from
MPs. Their contributions and part of that of the employer are allocated for
their retirement savings in the fund. They grow with the net investment returns
(which may be positive or negative) earned by the fund on its investments. The
net investment returns are calculated by the fund’s investment consultant on a
monthly basis. Last month, the Times of Eswatini reported that government spent
E6.5 million on advances for legislators. A total of 65 members of the House of
Assembly and senators applied for an E100 000 advance each and were all granted.
confirmed
The publication said the Communications Officer in the Ministry of Finance,
Setsabile Dlamini, confirmed the matter. Dlamini reportedly mentioned ministers
did not apply for the advances. The legislators received E100 000 advances
against their gratuity or ex-gratia. MPs are entitled to an ex-gratia payment.
Article 4.6.7 of the Finance Circular No. 2 of 2013 provides that the ex-gratia
payment is a grant that is payable to former parliamentarians to assist with the
costs of adjusting to non-parliamentary life. The ex-gratia payment is available
to all parliamentarians who fail to be re-elected or re-appointed into the new
Parliament. In the event that the parliamentarian does not fully serve the
five-year term, the ex-gratia payment is pro-rated, taking into account the
actual period served. In the current circular, a part year served is not
considered as a full year. This was the case with other circulars which were
amended. It must be said that the parliamentarian forfeits ex-gratia payment if
he or she is dismissed or removed from office because of misconduct or
incompetence. It is paid as once-off payment equal to one year basic salary
before tax for all parliamentarians. A gratuity is a lump sum amount that is
paid to an employee by an employer, as a token of appreciation on the
termination of the employee’s service.
forfeit
After the dissolution of Parliament, the parliamentarians forfeit the
constituency allowance of 12.5 per cent of basic salary, which is E6 125. They
are also entitled to a sitting allowance of E350. His Majesty has summoned the
nation to a national meeting to be held in the cattle byre at Ludzidzini Royal
Residence on Tuesday. It is anticipated that he would dissolve the 11th
Parliament. The final phase of the country’s election is on September 29,
2023. The nomination stage of the elections will be held on July 22, 2023. In
case the King dissolves the 11th Parliament on Tuesday, the likelihood is that
he will follow tradition. Tradition has it that he doesn’t dissolve
traditional structures, which include Royal Board of Trustees, Liqoqo,
Ludzidzini Royal Council and Border Restoration Committee during the national
meeting at the royal residence. One of the reasons that the King keeps these
four bodies in service is that they play an advisory role in the setting up of a
new government structure for the country.
He also does not dissolve Cabinet. In the past, Cabinet assumed the status of a
Council of Ministers. They passed laws which weren’t called Acts but Orders.
In the country’s parliamentary system, the King appoints 30 Members of
Parliament, including the prime minister. During such appointments, the
traditional councils, known as emabandla, are ordered to make suggestions about
candidates to be considered for national duties. In terms of Section 67 (1) of
the Constitution of the Kingdom of Eswatini, the King appoints the prime
minister from among members of the House, acting on recommendation of the
King’s Advisory Council. The prime minister then recommends the ministers to
His Majesty for appointment.
dissolved
The seat of a senator or of a member of the House becomes vacant where
Parliament is dissolved; the holder of that seat resigns in writing addressed to
the clerk to Parliament. It becomes vacant where the holder is absent from 20
sittings of the chamber during any meeting without the permission in writing of
the presiding officer and is unable to offer a reasonable explanation to the
Parliamentary Committee on Privileges. It can also be vacant where the
parliamentarian is expelled by a resolution of at least two-thirds of all
members of a chamber for contempt of Parliament. In terms of Section 95, the
House of Assembly shall consist of not more than 76 members composed as follows:
* Not more than 60 members elected from tinkhundla areas serving as
constituencies;
* Not more than 10 members nominated by the King acting in his discretion after
consultation with such bodies as the he may deem appropriate;
* Four female members, specially elected from the four regions;
* The Attorney General is an ex officio member.
The 11th Parliament was marred with controversy as three MPs were slapped with
criminal charges. These are exiled former Siphofaneni MP Mduduzi ‘Gawuzela’
Simelane, Hosea MP Mduduzi Bacede Mabuza and Ngwempisi MP Mthandeni Dube. Dube
and Mabuza have been convicted for contravening provisions of the Suppression of
the Terrorism Act of 2008.
Judge Mumcy Dlamini is yet to issue the sentencing. In 2021, the calls for
political reforms began in Parliament when the three MPs introduced a new
political ideology, which received support outside Parliament. They charged that
the prime minister should be appointed by the people so that he could be
accountable to them. The appointment of the premier is currently the prerogative
of the Head of State, acting on the recommendation from his advisory council.
mandated
As the call for the election of the premier by the people intensified, the youth
delivered petitions to various tinkhundla centres across the country. They
mandated their respective MPs to support the three MPs who were calling for
political reforms. They also criticised MPs who did not support the reforms
introduced by the three MPs. One of them is Kwaluseni MP Sibusiso
‘Mabhanisi’ Dlamini, who had to flee for safety as the young people
threatened him with violence. The situation turned chaotic when the petition
delivery was banned by the then Acting Prime Minister Themba Masuku, who felt
the gathering at the tinkhundla centres violated COVID-19 regulations. The youth
defied the ban and proceeded to march to Mbabane East on June 25, 2021, where
they hoped to deliver the petition to MP Harries ‘Madze’ Bulunga who doubles
as the Minister of Sports, Culture and Youth Affairs. Police prevented them from
marching to the inkhundla to meet the MP. Tear gas canisters were fired to
disperse them. They retaliated with stones and burning of tyres. They placed the
tyres in the middle of the roads. It became worse on June 26, 2021 at
Siphofaneni, where the police blocked ex-MP Simelane from proceeding to the
inkhundla to receive the petition. This infuriated his followers who responded
by burning the tyres and pelted police with stones. The police had fired tear
gas canisters to disperse them.
Confrontation
It must be said that one theory suggested that the confrontation between the
police and protesters at Msunduza in Mbabane and Siphofaneni in the east of
Eswatini birthed the civil unrest.
The civil unrest culminated in deaths of over 40 people and property destruction
valued at E3 billion as per government’s estimates. In response to the
unprecedented political violence, the prosecution preferred criminal charges
against the three MPs. In another development, the 11th Parliament was dealt a
severe blow when Prime Minister Ambrose Mandvulo Dlamini died of an undisclosed
disease precipitated by COVID-19. After his death, three ministers followed him,
and these are Makhosi Vilakati who was the Minister of Labour and Social
Security, Christian Ntshangase, the ex-Minister of Public Service and Peter
Bhembe, the former Minister of Natural Resources and Energy. In Senate, Chief
Nzameya Nhlabatsi and Jimmy Hlophe also died in office.