There’s ‘construction mafia’ in Eswatini minister told
MBABANE – The construction industry in the country is allegedly controlled by a ‘construction mafia’.
These allegations surfaced during the Construction Industry Council (CIC) Stakeholders Forum, that was held yesterday at the Hilton Garden Inn, in Mbabane. The forum was attended by members of both Houses of Parliament (House of Assembly and Senate) and players in the construction industry, among others.
However, no evidence was provided for these allegations.
The forum was officially opened by the Minister of Public Works and Transport, Chief Ndlaludlaza Ndwandwe, who urged the stakeholders to unapologetically deliberate on all matters that affected the industry, and make suggestions that would improve the industry.
Stakeholders
Indeed, the stakeholders deliberated and the government was asked on issues that seemed to be within its control and how others, including the private sector, can improve the sector to benefit emaSwati. The meeting was dominated by issues of control and limited opportunities that were extended to local construction companies and exploitation of emaSwati in the construction sector.
During a panel discussion, of which the panellists included Principal Secretary (PS) in the Ministry of Public Works and Transport Thulani Mkhaliphi, CIC Chief Executive Officer (CEO) Machawe Mnisi and CIC Board Chairperson Sandile Makhubu and stakeholders including parliamentarians, drew the attention of the panellists to the control of the construction industry.
One of the stakeholders, who identified himself as Maselenkhundleni, said there was a construction mafia in the country. He asked what government was doing to fight the construction mafia that was taking business from emaSwati.
“We have a construction mafia in the country. What are you doing about the construction mafia in the country?” he asked.
Saddening
The contractor said it was saddening that these mafias owned big companies and had subsidiary companies that have allegedly taken over the construction industry and the growing construction companies or those who want to enter the industry are blocked. The speaker made these allegations of the said mafia but could not provide evidence.
“How are the upcoming companies supposed to survive with the mafia doing as it pleases? These are things that need to be fixed because, at the end of the day, it is the masses that suffer. Let the playground be level, since government says there is no money, the most important thing is that emaSwati should survive,” he said.
He went on to share that local construction companies were even struggling to get tenders in the private sector. He said Eswatini lacked laws that protected certain industries or tenders to local businesses. The contractor said foreign firms were making a killing out of tenders that were awarded by the private sector.
“The common word or thinking says money is in construction, but the truth is there is no money. It is an erratic industry,” he said. He also raised concerns about big construction projects that were given to foreign-owned firms.
“To date, the country has two major projects, which are the construction of the new Parliament and Mpakeni Dam. The loan that was acquired to build the new Parliament building was specifically clear that the contractor would come from India, including the building materials. This is unfair because, at the end of the day, emaSwati will have to repay the loan with interest, through the taxes they pay. Then you ask yourself where is the value added of such projects, because at the end of the day, even when we pay the tax, we should know there is value addition. After all, a certain portion would have been ploughed back into the nation to benefit emaSwati,” he said.
Foreign
He added that there was the upcoming construction of the Phuzumoya Strategic Oil and Fuel Reserve project worth billions, that were likely to be given to a foreign company as well.
The contractor added; “We have Mpakeni Dam as we speak, where local firms were sidelined. Kubuhlungu besitsi sitawutfola umsebenti.”
Senate President Lindiwe Dlamini also raised concerns about the international loans that attracted the participation of foreign companies in local projects.
She highlighted a popular defence that is mostly used by government when it is enquired on why a foreign firm was awarded a tender that is financed through international loans, such as the Africa Development Bank (AfDB) loans. Even yesterday, the PS stated that there were conditions that came with these loans, which welcome interna
tional or regional participation.
The Senate president said there should be policies in place that compelled these international companies, in cases they were awarded the tenders, to form joint ventures with local companies.
“If there is no local contractor that qualifies to be awarded that particular tender, there should be a provision of a joint venture with that international contractor, so that there could be transfer of skills, so that local firms can acquire the needed skills,” she said.
Restrictions
Dlamini said there should be a clear distinction between a loan and a grant. She mentioned that grants can have all the restrictions, because they were not repaid, but loans were repaid, therefore, there should not be too much dictation.
“Aloan that I will repay together with my children and their children should benefit emaSwati,” she said.
She proposed to the CIC to form strong ties with the ministries of Finance and Economic Planning and Development, and look at the loan agreements that were obtained through international bodies like AfDB, and a the World Bank, among others.
She noted that some of these loans, like for the new Parliament building (E1.6 billion), demanded that everything would come outside the country, from building materials to expertise.
“How will emaSwati supposed to benefit? Asiphiwa lemali, we will pay it,” she said.
The Senate president made it known that she was not against international companies, but she also had the best interest of emaSwati.
She further urged local companies to capacitate themselves and grow their skills to be able to partake in these big projects as well.