Times Of Swaziland: EX-CABINET COMMITS GOVT TO E45.6M COSTS

EX-CABINET COMMITS GOVT TO E45.6M COSTS
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Mfanukhona Nkambule on 22/10/2023 15:43:00


MBABANE – On its last day in office, the previous Cabinet committed government
to a cost of about E45 601 800.
This is despite the fact that there was an opportunity by the Cleopas Sipho
Dlamini-led Cabinet to avoid the costs by not implementing through an amendment
of Finance Circular No.2 of 2013. Their last day in office was on the Wednesday
of September 27, 2023. Cabinet sits on Tuesday, effectively meaning that their
last meeting was on September 26, 2023. Notably, a day after their last meeting,
the Ministry of Finance issued a memorandum that guaranteed the ministers at
that time a sum of E786 227.64. The memo is dated September 27, 2023, the last
day of the previous Cabinet’s stay in office. It is titled: ‘Re: Addendum to
Finance Circular No.2 of 2013, terms and conditions of service of Eswatini
politicians’.
Of the 19 Cabinet ministers who were in office, there were only three who were
not eligible for reappointment to Cabinet, but were eligible for re-election or
reappointment to the House or Senate. These are Jabulani Clement Mabuza
(re-elected), David ‘Cruiser’ Ngcamphalala (re-elected) and Moses Vilakati
(lost elections).
not eligible
They were not eligible for reappointment to Cabinet on the basis that they had
already served two consecutive terms as ministers. The other 16 ex-ministers,
including the then prime minister (PM) and his deputy, were eligible for
reappointment in terms of the Constitution of the Kingdom of Swaziland
(Eswatini). On September 26, 2023, they were not eligible for the ex gratia
payment as it was a facility for former parliamentarians to assist with the
costs of adjusting to non-parliamentary life. However, on September 27, the ex
gratia also belonged to them. It meant the 16 ex-ministers, whether reappointed
or re-elected, would receive the money. If they had allowed the government to
strictly apply Finance Circular No.2 of 2013 without any amendment, there was to
be no burden for the taxpayer to part with E12 579 642 in payment of ex gratia.
This is total amount of money for the 16 ex-ministers who are eligible for
reappointment to Cabinet.
Presently, there are 10 ex-ministers who are back in Parliament, and these are
Thuli Dladla, Manqoba Khumalo, David ‘Cruiser’ Ngcamphalala, Lizzie Nkosi,
Princess Lindiwe, Mabulala Maseko, Jabulani Mabuza, Phila Buthelezi, Dr Tambo
Gina and Prince Simelane. Outside Cabinet, there are politicians who returned to
Parliament. They include Nomalungelo Simelane, Mduduzi Matsebula, Ndumiso
Mdluli, Tony Sibandze, Marwick Khumalo, Madala Mhlanga and Lorraine Nxumalo. His
Majesty the King is yet to appoint 20 senators to constitute a Senate total
membership of 30. The House of Assembly has already elected the 10 members of
Senate who include four members who served in the previous Parliament. It is not
certain whether Ingwenyama will reappoint some of the former ministers. Since
packages for royal councils (emabandla) and regional administrators are linked
to the terms and conditions of service for parliamentarians, it meant the costs
would escalate. Tradition has it that Ingwenyama does not make major changes in
the royal councils, except members swapping positions. In fact, there are
members of emabandla who have been in office since 1996.
calculations
Conservative calculations (at minimum) indicate that the government will pay
members of emabandla, whether reappointed or not, a sum of E29 484 150. Adding
the total package of emabandla to the E12 579 642 for 16 ministers eligible for
reappointment to Cabinet which equals to E42 063 792.00. The cost of E42.063
million excludes the ex gratia of the seven parliamentarians who are back in
Parliament. Excluding Nomalungelo Simelane, who joined Parliament last year, the
cost for six parliamentarians would be E3 538 008.00. Adding the cost for the
six MPs to those of emabandla and ex-Cabinet, they escalate to E45 601 800. The
costs will shoot up if the ex-parliamentarians are reappointed to Senate by the
King. Reads Article 4.6.7 of Finance Circular No.2 of 2013, which is being used
in the determination of payments for the 11th Parliament: “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.”
This clause was amended to read as follows: “The ex gratia will be paid as a
once-off payment, equal to twelve (12) months (one year) basic salary before
tax; paid to all parliamentarians and designated office bearers at the end of
the 11th Parliament. The circular will be effective from September 27, 2023.” 
When dissolving Parliament in July 2023, the King did not disband his Cabinet.
On August 8, 2023, a gazette was issued that announced that the Cabinet would be
in office until September 25. Another gazette was issued on September 18, which
extended the ministers’ stay in office by two days. The extension was
announced by the Attorney General (AG), Sifiso Khumalo. It meant that the last
day in office for the ex-Cabinet was September 27, 2023. The Ministry of Finance
had issued a memo dated July 25, 2023, providing that salaries and allowances
for parliamentarians accruing to them under Finance Circular No.2 of 2013 shall
be ‘paid in full until the day preceding the first meeting of the House,
following the general election.  The first meeting of the 12th Parliament was on
October 6, 2023. It meant the payment of salaries and allowances was stopped on
October 5, 2023.
adjustment
There is a possibility that the ex gratia costs would increase as the general
principle dictates that the last pay determines the calculation. Politicians
also benefitted from the four per cent cost-of-living adjustment awarded to
civil servants. The July memo was signed by then Acting Principal Secretary (PS)
Nkululeko Dlamini. The PS’s office stamped it on July 25, 2023.
The payments are reportedly based on Section 134 (1) (b) as read with Section
134 (6) of the Constitution of the Kingdom of Swaziland (Eswatini). “Following
the dissolution of Parliament on July 11, 2023, provisions of Section 134 (1)
(b) read together with Section 134 (6) are of application,” partly reads the
memorandum. Section 134 (6) refers to the King’s powers to dissolve
Parliament.
On the other hand, Section 134 (6) of the Constitution provides as follows:
“Where Parliament is dissolved in terms of Subsection (1) (b) the Members of
Parliament shall be deemed to have vacated office on the day, but one of the
first meetings of the House after the general elections.” The Ministry of
Finance stated that the remuneration arrangements of the parliamentarians stood
as follows:
* Circular No.2 of 2013 should be applied strictly.
* Parliamentarians’ salaries and allowances accruing to them under Circular
No.2 of 2013 to be paid in full until the day preceding the first meeting of the
House following the general elections.
* This memorandum shall also apply to the support staff of the parliamentarians.
* Ministers are expected to calculate the exit packages to parliamentarians as
per Circular No.2 of 2013, Section 4.6.8 and for their support staff as per
Finance Circular No.2 of 2017.
12th Parly’s ex gratia
It must be said the 12th Parliament would be guided by the new working document
styled Finance Circular No.2 of 2023 dated August 2, 2023. In the new circular,
the ex gratia will be paid as a once-off payment, equal to 12 months basic
salary before tax. It will also be paid to all parliamentarians and designated
office bearers at the end of the 12th Parliament. It is not certain if the
payment arrangement will remain the same as this document is specific that the
ex gratia is for members of the 12th Parliament. Alpheous Nxumalo, the
Government Press Secretary, referred enquries to the Ministry of Finance, as
they were better placed to respond to the questions. Setsabile Dlamini, the
Communication Officer in the Ministry of Finance, said the payment of ex gratia
to all the parliamentarians would not come with an extra cost as the money had
been included in the budget. When delivering the budget speech for this
financial year in February 2023, Neal Rijkenberg, the former Minister of
Finance, said while there were provisions for new and non-discretionary items
such as salary adjustments, elections and exit packages for politicians, care
had been given to make enhanced provisions for previously compromised budget
lines and programmes.
These included tertiary education scholarships, free primary education grants,
more grants for the elderly and the people with disabilities, youth empowerment
programmes, public investment and capital expenditure. In April 2023, the
ex-Minister of Finance, told the Times SUNDAY that the issue of the gratuity was
a very touchy subject, adding that he was aware that he would lose the argument
should it go to debate. He suggested that the issue should be addressed by the
Royal Commission entrusted with the responsibility to review the conditions of
service for politicians.
implemented
The commission has made recommendations on the ex gratia, which the government
has implemented. The previous portfolio committee of the Ministry of Finance,
which was led by Marwick Khumalo, did actually recommend that the ex gratia
should be paid to all parliamentarians. In its report, the portfolio committee
made a recommendation to the effect that since Circular No.2 of 2013’s
implementation had not been consistent and has been subjected to irregular
unwritten amendments, the ex gratia payments for all deserving politicians as
calculated and provided for in this year’s Appropriation Bill 2023/24 should
be paid immediately after the dissolution. The recommendation was also to the
effect that the contradictory and unconstitutional clause in the circular should
be discarded forthwith. Furthermore, the committee made it clear that once the
ex gratia budget allocation had been passed by the House, it could not be
altered by the ministry by way of selective disbursements to politicians, based
on whether they were re-appointed or not, as that would not only be in
contemptuous of Parliament, but would be in contravention of the Appropriation
Act after it had been assented to by His Majesty King Mswati III.
According the report, government was expected to make sure that the law was not
tampered with by any subsidiary authority. The recommendation, according to the
report, emanated from a finding by the committee to the effect that the circular
had serious irregularities since it longer represented the content of the report
upon, which it was produced, especially on issues that included the remuneration
rate of presiding officers and the ex gratia payments.
Basic salary
According to the new circular, the recommended remuneration structure includes a
basic component (salary) with a provision for an amount to which the Second
Schedule of the Income Tax Order 1975 (as amended) applies. This is not
all-inclusive as the government is expected to contribute over and above this
amount for other benefits and allowances.
It is said that the salaries for parliamentarians, designated office bearers and
the attorney general will continue to be linked to those of the Civil Service
through the secretary to Cabinet for the duration of the 12th Parliament. The
salary of the secretary to Cabinet and head of the Public Service will continue
to be used as a base. It will allow placing the basic salary of the prime
minister at 50 per cent above that of the secretary to Cabinet.
Salaries for all other parliamentarians, designated office bearers and the
attorney general will be determined as a ratio of the prime minister’s salary.
The sliding scale ratio reflects the political and administrative structure of
the State, set out in a ‘single spine’ salary structure, to ensure alignment
in all three arms of government. The Ministry of Finance stated in the circular
that the salaries for parliamentarians will continue to be linked to those of
civil servants, considering that all Arms of Government have to work together to
drive government’s strategy for development. According to the ministry, the
driver in the implementation of the strategy is the civil service. While the
terms and conditions of service for parliamentarians and designated office
bearers are adequate to ensure the recruitment of suitably qualified people into
Parliament, the ministry said they should, however, remain fair in comparison to
those of the civil servants. Therefore, these salaries should be sustainable and
in line with the prevailing economic situation.