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Fix remittance of pension contributions now – AG warns public enterprises

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The Eswatini Medical Christian University has pension funding gaps for its workers. (Pic: Courtesy)
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MBABANE – Workers at the University of Eswatini, Medical Christian University and Eswatini Television Authority may face destitution in retirement as their employers have allegedly failed to remit pension contributions despite deducting them from salaries.

Auditor General (AG) Timothy Matsebula has sounded the alarm, revealing that the affected public institutions have deducted over E147 million from employees’ pay, but failed to transfer the money to the pension funds they subscribe to.

The AG described this as a serious breach of fiduciary responsibility, warning that thousands of employees risk losing their retirement benefits if urgent corrective action is not taken.

According to Matsebula’s findings, the malpractice is not confined to a single entity, but appears systemic across key public enterprises.

The institutions are defaulting on both employer and employee contributions.

While deductions appear on employees’ payslips, the funds are reportedly not being remitted to the relevant retirement schemes.

This creates a devastating situation for workers who, after decades of service, may discover that their pensions are either incomplete or non-existent.

It also places the institutions at risk of legal action, financial penalties and reputational damage.

“The continued failure to remit these deductions deprives employees of their retirement benefits, attracts penalties and interest, and exposes the institutions to reputational and legal risks,” Matsebula stated in his report.

He stressed that management of the defaulting enterprises should be held accountable and that oversight ministries must take immediate corrective steps to enforce compliance.

“Appropriate disciplinary or legal action should be considered for continued non-compliance. Strengthening these controls will protect employees’ retirement benefits, minimise financial penalties and safeguard the reputations of the enterprises involved,” he said.

The AG’s report revealed the scale of the problem, with UNESWA owing almost E99 million, Eswatini Christian Medical University over E7.4 million, Southern Africa Nazarene University about E7.3 million and Eswatini Television Authority nearly E33.5 million.

This brings the total arrears to just over E147 million, a figure that could balloon further with interest and penalties for late remittances.

For staff, the figures are not just numbers on a ledger. They represent the foundation of retirement security.

A lecturer at UNESWA, speaking on condition of anonymity, said many employees have been growing increasingly anxious as rumours of non-payment spread.

“We are told deductions are made, but when some colleagues try to follow up with pension funds, there are discrepancies. This is very worrying. Imagine serving 30 years only to find your pension is gone,” he said.

Experts warn that non-remittance of pension funds is tantamount to financial mismanagement, and in some jurisdictions is treated as criminal.

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NMC’s E6 million financial blow raises governance concerns

MBABANE – The National Maize Corporation (NMC) has suffered a financial blow amounting to over E6 million. This is due to poor contract management and a lack of proper legal oversight, raising fresh concerns about governance within public enterprises.

According to the latest audit findings, NMC incurred a loss of E6 175 000 after breaching contract terms in 2017.

The lapse triggered legal claims that dragged on for years before being settled, with the prolonged litigation categorised as fruitless and wasteful expenditure.

Auditors noted that the loss could have been avoided had the parastatal adhered to agreed contractual obligations and exercised sound contract management practices.

The revelation comes at a time when public enterprises are under scrutiny for inefficient operations, heavy reliance on government subventions and questionable financial decisions.

 NMC, a key player in the country’s food security and agricultural sector, is expected to uphold the highest standards of accountability. Instead, the audit highlights weaknesses that not only drain financial resources, but also cast doubt on the corporation’s ability to safeguard public funds.

Compounding its financial woes, NMC is now facing a legal claim of E863 718 from its former Chief Financial Officer (CFO).

The dispute arose from the non-renewal of her employment contract. Delays in responding to the renewal notice, combined with administrative lapses, triggered litigation that remains unresolved. If the case results in a settlement, the payment would represent yet another instance of wasteful expenditure.

*Full article available in our publication.

eiled to the fans by the Council of Elders as the new boss of the maroon and white outfit. He appealed for supporters’ assistance to run the team, as the former Kubuta Member of Parliament (MP) said that while he would be assisting with salaries and other expenses, fans have a financial role to play, too.

Mabuza noted that the club, with more players yet to be added, currently need roughly between E140 000 and E160 000 per month. This means if the minimum of E140 000 is used from September 2025 until May 2026, it will total E1.12 million. It is worth noting that the new director has been at the helm of the club for the past three months.

He applauded the fans for looking after the players’ welfare at the clubhouse, citing examples such as the purchase of a television, a decoder and subscriptions. Furthermore, the club has announced a new supporters’ subscription programme, where fans can contribute amounts as little as E50, E150, or E300, depending on their chosen category, to make the Nyanga ‘Crooks’ Hlophe side self-sustainable.

Full article available in our publication.

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