CONTRACTORS ACCUSE GOVT OF HIRING LESS CAPABLE LOCALS

MATSAPHA – Contractors are not happy that government allegedly considers local contractors incapable of carrying out certain projects - like the multibillion Emalangeni CBE Headquarters.
The contractors raised this concern during a stakeholders engagement meeting, which was hosted by the Ministry of Public Works and Transport, in collaboration with the Construction Industry Council (CIC), at Esibayeni Lodge yesterday. They said they are concerned about government’s alleged conclusion that construction companies owned by emaSwati are incapable of doing certain jobs.

Contractors

Eswatini contractors Association (ECA) Chairman Reuben Msibi said one of the projects, where it was said that emaSwati contractors cannot design and build, is the Central Bank of Eswatini (CBE) multibillion Emalangeni Headquarters, which will be constructed in Ezulwini.   Msibi was represented by executive member Percy Mazibuko. The contractors’ concern is; how does government determine that emaSwati can or cannot be able to carry out certain projects?  Meanwhile, Msibi said given the competitive nature of the bidding process in public sector projects, they call for an increase in the number of capable contractors. He said this can be achieved through focused skills development and business management trainings. He said it is crucial for contractors to comprehend the intricacies of government contracts, budget adequacy and the general conditions of contract fulfilment.

“These training sessions will not only provide valuable Continuing Education Points (CEPs), but also offer an in-depth understanding of working with government entities as clients,” Msibi said. One of the contractors, John Horton, from Horton Investments, said construction companies which are owned by emaSwati do grow, but not at the rate at which foreign-owned companies are growing. However, he asked not to expand on the matter, because some of the issues are political. Thereafter, CIC Chief Executive Officer (CEO) Machawe Mnisi said as a council, they have received concerns regarding being purportedly left out of the CBE multibillion Emalangeni Headquarters. He said they have already met with the CBE Governor, Dr Phil Mnisi, and his team over the matter.

“We have agreed that from next week, they will start inviting contractors as they want CBE to hear the concerns from the horse’s mouth,” the CEO said. Again, he said they are happy as a council to see ECA talking about up-skilling, because this will equip them to be ready to compete and take up any project.  Meanwhile, the Principal Secretary (PS) in the Ministry of Public Works and Transport, Thulani Mkhaliphi, said he was shocked to hear that at times government makes conclusions that emaSwati cannot carry out some projects.

Pity

“As a ministry, we do not support it. In fact, it is not supposed to happen and it is not the truth,” the PS said. He added that the construction industry is one of the sectors which drive the economy of the country and it is a pity that government will say emaSwati cannot carry out certain projects. Again, he said about 70 per cent of government’s capital projects budget is expatriated immediately after they start spending it. He said some can justify it by saying they promote trade and it boosts the Southern African Customs Union (SACU) receipts. The PS commended CIC for standing up and defending the contractors regarding this concern, as emaSwati are being left out in big projects.  He then urged CIC to always invite the ministry when they have such engagements, because they want to set the record straight that they want emaSwati to get a fair share in projects carried out in the country.  Moreover, the PS assured the contractors that as a ministry, they want to ensure that the construction industry thrives.

He added that he is happy with the attendance because it means that emaSwati are getting serious about the industry and urged them to speak openly about issues that affect them, instead of discussing them in their corners. Another issue that was raised was the prioritisation of local producers and suppliers of construction material, who are organised under the Building Material Suppliers Association (BMSA), who were also represented during the meeting.  Again, the contractors said the construction industry, particularly for local contractors, is fraught with challenges that can impede their growth and operational efficiency. They said these challenges range from the intricacies of managing local infrastructure contracts to the hurdles in financial management, such as delayed payments from government entities and the consequent tax compliance issues.  The CIC CEO said they have met with Eswatini Revenue Service (ERS) over the concern and agreed that they should have a forum with the contractors to discuss it.   Government is negotiating with donors, in particular the African Development Bank (AfDB) to set aside a certain share of their project budget for emaSwati The legitimacy of decisions taken by CIC has been questioned, as its Board members who were appointed from ECA executive committee were allegedly in office illegally.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: