MBABANE – Taxpayers are assisting the Public Service Pensions Fund (PSPF) in recouping its investment in the acquisition of the building above the Mbabane bus rank.
It has been established that government made a commitment before the PSPF acquired the building that it would occupy space in the offices. This has been viewed by the Trade Union Congress of Swaziland (TUCOSWA) as unfair to the taxpayer.
The building was acquired from the Eswatini Association of Savings and Credit Co-operatives (ESASCCO) based on the undertaking that government made to acquire space at the new PSPF commercial building.
It can be said that government revenue is derived from taxes, mainly from the private sector. This effectively means that the taxpayer, consisting of private-sector companies and employees, is contributing to the recovery of the PSPF’s capital investment through rent to be paid by the government that collects taxes from them.
Through the Eswatini Revenue Service (ERS), government collected E15.7 billion in total domestic revenue for the 2025/26 financial year.
It was reported that the PSPF bought the commercial building at a reported price of over E30 million.
Beyond the initial purchase price, the media extensively reported that the Fund was expected to invest over E300 million to completely redevelop and transform the structure into a premium office complex.
The purchase was officially executed by the fund’s wholly owned subsidiary, Umlamuli (Proprietary) Limited. The ESASCCO building is a six-level floor structure with a general landing area of 13 809 square metres of office space.
Mthunzi Shabangu, the Principal Secretary in the Ministry of Public Service, said government had made a commitment to rent the PSPF’s new building above the Mbabane bus rank.
Shabangu said the lease agreement signed by the PSPF and government aligned with this commitment.
Government ministries that have moved to occupy space at PSPF’s new building include the Ministry of Finance and Ministry of Economic Planning and Development, among other government establishments.
The PSPF building is 80 per cent occupied by government.
Reacting to the rent-to-buy principle, Shabangu said this ‘thought’ had crossed their minds belatedly, even though it had not yet been consolidated nor submitted to Cabinet for consideration and approval.
He added that a cost-benefit analysis of the rent-to-buy option had also not yet been conducted.
Meanwhile, Zakithi Thusi, the acting Director Corporate Services at PSPF, responded to questions sent by the Times of Eswatini SUNDAY regarding the financial mechanics, occupancy and management of the building.
Responding to questions regarding the exact government rental bill, the original undertaking made prior to the purchase, the burden on the taxpayer and value for money, Thusi was not specific in her written questionnaire.
She said while the fund had a functional investment strategy and operated in accordance with applicable laws, certain commercial and contractual information was subject to legal and contractual obligations.
For its property developments, she stated that PSPF required developers to secure pre-leasing commitments to determine the potential occupancy rate.
Reacting to the question on the building occupancy rate, she said the property was currently 80 per cent occupied by government ministries and the remainder by private-sector tenants.
Responding to the question on property management and procurement, including who was responsible for daily management and whether a tender had been issued, Thusi clarified that the project had been proposed to the PSPF as a turnkey project.
She said that in approving it, the developer was required to come up with the appropriate designs, pre-lease agreements and a property manager. She noted that the current property management services were for a fixed period and would be put to tender upon the expiry of this term.
Thusi further encouraged the media and other stakeholders to continue verifying any figures or information attributed to the fund directly with it before publication, particularly where such information related to contractual or commercial arrangements.
It has to be said though that PSPF falls under the Ministry of Public Service. The entity’s chief executive officer is appointed by the minister.
The Public Service Pensions Fund has been constituted to deliver retirement and other benefits to employees working in the public service of Eswatini. The fund administers benefits under the Public Service Pensions Order no.13 of 1993.
In doing so, it provides every public servant security of dignified retirement.
It can be said that the PSPF’s work extends beyond providing members with pension payments when they retire, to caring for members’ financial wellness at retirement and throughout retirement by providing them with information, assistance and customised and innovative financial solutions tailored to public servants.
It is said that the fund accomplishes this through sustainable investment-based practices and governance to create sustainability while providing equitable member returns.
On the basis of an actuarial investigation by Malan and Partners conducted in September 1991, the Fund at inception, was grossly underfunded. The funding level has been addressed over time as a result of outperformance by the portfolios.
Investments in Eswatini are reportedly divided into two portfolios, which are those with investment managers with a discretionary mandate and those managed by the Fund as their own portfolio.
Investments outside the country are managed through investment managers who have a discretionary mandate.
The minimum desired real rate of return is to achieve at least five per cent.
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