AFTER LOSING ELECTIONS: E1.9M FOR MOSES, E1.3M FOR LADY MABUZA

MBABANE – The three per cent salary increment could have been effected at the right time for the ministers who lost the general elections.

After crashing out of the general elections on August 26, 2023, Moses Vilakati, in particular, may have something to smile about as his exit package is relatively attractive. He has served the legislature and executive for 10 years. He stands to get E1.92 million. The minister’s new basic salary is E65 518.97. His tax-free pension payout calculated from 2013 to 2023 may be around E1.13 million plus his ex-gratia payment, calculated at current salary, could be E786 216. He will get the E1.13 million as a lump sum – tax free, but the E786 216 is subject to tax.
Vilakati is the current Minister of Tourism and Environmental Affairs. His pension payout has been calculated at the minimum salary of E63 000 per month (old scale) while his ex-gratia, as per the country’s standard labour practice, was calculated in consideration of his current basic salary plus 12 months as stipulated in Finance Circular No.2 of 2013.

adjust

According to the circular, he has to adjust to non-parliamentary life. This is provided in Article 4.6.7 of Finance Circular No.2 of 2013. Lady Mabuza (nee Howard), will also have what other people may describe as a consolation. She was a favourite to win the elections at Mafutseni, one of the tinkhundla centres famous for producing ministers who included Musa Nkambule, Majozi Sithole and Christopher Gamedze. She is expected to receive E786 216 in ex-gratia to adjust to the new life outside Parliament. For serving the legislature and executive for five years, her pension payout may be around E607 000. This will be paid as a lump sum, the equivalent of one-third of her pension. It is tax-free but the remaining two-thirds will be subject to taxation. In total, the minister of Education and Training stands to get E1.3 million. However, it must be emphasised that the ex-gratia is taxable.

The two above mentioned ministers are not proceeding to the secondary elections to be held on September 29, 2023. This is because they were not successful in the general elections held on August 26, 2023.  “The ex-gratia payment is a grant that is payable to former parliamentarians to assist with the costs of adjusting to non-parliamentary life,” reads Article 4.6.7 of Finance Circular No.2 of 2013.

re-elected

“The ex-gratia payment is available to all parliamentarians who fail to be re-elected or re-appointed into the new Parliament.” This tax is statutory. On the other hand, the outgoing 21 MPs who lost the primary elections will also smile to the bank. If the standard labour practice is anything to go by, their new salary of around E50 000 could be used to determine the calculation of their ex-gratia. It has been established that the country’s standard labour practice considers the last basic salary as a determining factor in the calculation of an employee’s exit benefits such as gratuity or ex-gratia in the context of Eswatini politicians. If government were to pay the exit packages, in particular the ex-gratia for the outgoing MPs who lost the election, the taxpayer would, at current estimates, part with E12.6 million. Each backbencher is to receive E600 000 as an ex-gratia. Ex-gratia is given as a favour or from a sense of moral obligation rather than a legal requirement.

In another development, it is not clear if David ‘Cruiser’ Ngcamphalala, the Minister of Tinkhundla Administration and Development and Jabulani Clement Mabuza, the Minister of Agriculture would also get the money. The uncertainty stems from probabilities that they may return to Parliament if they win the secondary elections. Then, a persuasive theory by one political expert, who chose to address the issue on condition of anonymity argued that Ngcamphalala and Mabuza (Jabulani) would not have to adjust to a new parliamentary life in case they win the elections.

implementation

However, they would receive lower salaries as backbenchers. Members of the House and Senate are paid a salary of around E50 000 after the implementation of the three per cent increment across the Board. Secondly, the minister’s current pay rate is favourable to them to calculate the ex-gratia. It must be said that they are not eligible for reappointment to Cabinet in terms of Section 68 (6) of the Constitution of the Kingdom of Eswatini, which provides that “a minister shall not be in office for more than two consecutive terms.” Ngcamphalala and Jabulani Mabuza have been members of Cabinet since 2013 and 2023 marks their 10th year at Hospital Hill.

ex-gratia

Setsabile Dlamini, the Communication Officer in the Ministry of Finance, said: “So long as they are in the new Parliament, they do not qualify for ex-gratia.” A memorandum dated July 26, 2023, issued by the Ministry of Finance, states that “ministries are expected to calculate the exit packages to parliamentarians as per Circular No.2 of 2013.” A labour officer (name withheld) said the last basic salary was used to calculate gratuity. “There are people who are fortunate to get promotion a year or two before they retire. When calculations are done, the law requires that we look at how much the employee was receiving at the time of the retirement,” said the labour officer. The Members of Parliament Gratuities Act, 1980, was repealed in 1993. It was replaced by the Members of Parliament and Designated Office Bearers Pension Fund Order, 1993. Under normal circumstances, the affected ministers hardly respond to their personal finances, but efforts were made to get hold of the ministers last night. Responses had not been obtained at the time of going to press. One of the outgoing MPs said he would invest his money and start a consultancy. “I will not disclose the nature of the constituency because I don’t want my business idea to be stolen,” the outgoing MP who lost the election said.

Exit packages

In his 2023 budget speech, Neal Rijkenberg, the Minister of Finance, said government would provide for new and non-discretionary items such as salary adjustments, elections and exit packages for politicians. Five ministers are still in the race to Parliament. Winning the election on September 29, 2023, could help them stand a good chance to be considered by the King for the reappointment to Cabinet. The contesting ministers are:
* Dr. Thambo Gina - Minister of Economic Planning and Development;
* Jabulani Clement Mabuza - Minister of Agriculture;
* Mabulala Maseko - Minister of Public Service;
* Phila Buthelezi - Minister of Labour and Social Security.
* David ‘Cruiser’ Ngcamphalala - Minister of Tinkhundla Administration and Development.

In terms of the gazette extending their term of office after the dissolution of Parliament, they shall be in office until September 25, 2023. Section 66 of the Constitution provides that “there shall be a Cabinet which shall consist of the prime minister (PM), deputy prime minister (DPM) and such number of ministers as the King, after consultations with the prime minister, may deem necessary for the purpose of administering and executing the functions of the government.” The PM shall be the chairman of the Cabinet and leader of government business in Parliament. His Majesty the King appoints the PM from among members of the House acting on recommendation of the King’s Advisory Council. The Council is referred to as Liqoqo.
On the other hand, the King appoints ministers from both chambers of Parliament on the recommendation of the PM. It is provided in the Constitution that at least half the number of ministers shall be appointed from among the elected members of the House.

contract

Responding to a question on continuation of payment of allowances for politicians a fortnight ago, Thembinkosi Dlamini, the Executive Director of the Coordinating Assembly of Non-Governmental Organisations (CANGO), advised that a contract between an employer and employee should be respected. This is regardless of political position or otherwise. In South Africa, members of the executive or deputy ministers who have served more than five years and whose term of office are entitled to a once-off gratuity equal to four months pensionable salary for every five years of service or a pro-rata part of the five year period. It could not be ascertained if ministers in Botswana are paid gratuities but Section 40 of the Constitution of Botswana provides that “a person who has held the office of president shall receive such pension or upon the expiration of his or her term of office, such gratuity as may be prescribed by resolution of the National Assembly, which shall be a charge on the Consolidated Fund.”

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