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UP TO 87.5% HIKE FOR PARASTATAL BOARDS’ ALLOWANCES

12/09/2024 09:54:00 Stanley Khumalo

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MANZINI – Allowances of Category A parastatals Board of directors have increased with a maximum of 87.5 per cent.
The increment is subsequent to the introduction of the Public Enterprise Unit (PEU) Circular No.3 of 2024, which came to effect on September 1, 2024.The Director of PEUs, Busangani Mkhaliphi, in a communiqué said the new circular revoked PEU circulars No.2/2017 and No.5/ 2013, which until August 31, 2024, were used to remunerate Board of directors of parastatals.PEU Circular No.3 of 2024 articulates the Board fees and guidelines on travel for parastatals executives. The circular, which was issued on Monday, September 9, 2024, was directed to all chief executives of Category A public enterprises and their Board of directors.

Meeting

According to Mkhaliphi, it was published to inform the recipients that the Cabinet Standing Committee on public enterprises, in a meeting held August 20, 2024 (SM5499) approved revision of the fees paid to members of the governing bodies of the Category A parastatals.The retainer allocated to a chairperson of a Category A parastatal, according to the PEU Circular No.3 of 2024, has since the beginning of September 2024, increased with 66.67 per cent. This is because until the introduction of this circular, chairpersons of Board of directors in the Category A State-owned enterprises (SOEs) had a retainer of E2 400, which has since been reviewed upwards to E4 000. Their sitting allowance will increase with 47 per cent for an ordinary sitting. According to the circular, the number of ordinary Board meetings should not exceed six per year and this is the same with the number of Board sub-committee

meetings.

The circular also states that Board sub-committee chairpersons shall be allocated a sitting allowance similar to that of a Board chairperson. According to the Public Enterprises (Control and Monitoring) Act, 1989 Act No.8 of 1989, a Category A parastatal is a public enterprise or body which is either wholly owned by government or in which government has a majority interest or which is dependent upon government subvention for its financial support. Meanwhile, the retainer fee for ordinary members of the Boards in Group B has been reviewed upwards with 87.5 per cent, as it increased from E1 600 to E3 000. Their sitting allowance has hiked with 51.4 per cent. This is because it was increased with E1 290. From the beginning of this month, it has been increased from E2 510 to E3 800.

The Category A SOEs are characterised into two groups with those with a retainer set at 66.7 per cent being group A and there are 24 of them. These are: EswatiniBank (SDSB), Eswatini Railways (ESR), Eswatini Revenue Service (ERS), Public Service Pensions Fund (PSPF), Eswatini Electricity Company (EEC), Eswatini Posts and Telecommunications Corporation (EPTC), Eswatini Water Services Corporation (EWSC) and Eswatini National Provident Fund (ENPF). They also include: Financial Services Regulatory Authority (FRSA), University of Eswatini (UNESWA), Royal Eswatini National Corporation (RENAC), Eswatini Development Finance Corporation (FINCORP), Sincephetelo Motor Vehicle Accidents Fund (SMVAF), Eswatini Housing Board (EHB), Eswatini Communications Commission (ESCCOM), Eswatini National Petroleum Company (ENPC) and National Emergency Response Council on HIV and AIDS (NERCHA).

The others are: Eswatini Energy Regulatory Authority (ESERA), Eswatini Civil Aviation Authority (ESWACCA), Eswatini Water and Agricultural Development Enterprise (EWADE), National Agricultural Marketing Board (NAMBoard), Eswatini Dairy Board (EDB), Royal Science and Technology Park (RSTP) and National Maize Corporation (NMC).The retainer allocated to a chairperson of a Category A, group B parastatal increased with 43.4 per cent. This follows that their retainer has been increased from E2 095 to E3 000. Their sitting allowance has improved with 27.3 per cent as it increased from E2 595 to E3 000.

On the other hand, Board members of category A, group B SOEs retainer has increased with 43.37 per cent as it hiked from E1 395 to E2 000. Their sitting allowance increased from E2 245 per sitting to 2 900, which is equivalent to 29.18 per cent.It is worth noting that the circular further stipulates that the number of special Board meetings should not exceed six per year. These, it states, shall be paid half the amount of an ordinary Board sitting fee. “Any sitting above the stipulated number should be approved by the line minister in writing,” reads the circular.It further states that public enterprises are requested to report on the number of all Board and sub-committee meetings held in their PEU quarterly report and expenses incurred thereof.It is worth noting that there are 26 group B, category A parastatals.