Govt paid over E600k as ex-gratia payment to former MPS

THE Government of the Kingdom of Eswatini had to pay an additional E208 225.83 to ensure the members of the 9th Parliament severance pay was not taxed.

As a result, the Government eventually spent a sum of E630 987.37 paying exgratia payments to the former Members of Parliament when she was mandated to pay E422 761.54 which was 25 per cent of the E1 691 045.15, which is the gross salary earned during the term of office.

According to a report delivered by Marwick Khumalo, the Chairman of the Ministry of Finance Portfolio Committee, which was adopted and passed in Parliament on Friday, the payment of the ex-gratia was based on Finance Circular No.1 of 2010 which is a policy document that provided for the Terms and Conditions of Service for Politicians for the 9th Parliament.

The provisions of Clause 7 9 (a) of the Finance Circular No.1 of 2010 state that: “On leaving office at the end of the parliamentary term, Parliamentarians need time to arrange their affairs and reenter the formal employment market or focus on their personal businesses. Parliamentarians shall receive a severance grant on leaving office. This will not be taxable.”

It also states that a Member of Parliament/ Senator will be paid an ex-gratia payment in an amount, which after tax is equal to 25 per cent of gross salary earned during the term of office.

“Government, however, paid an additional provision of E208 225.83 (33% tax) was provided which made the total payment come up to E630 987.37 to allow for the payment of tax obligations to Eswatini Revenue Services.”

“The Ministry of Finance is the policy maker of tax legislations in the country and adherence and compliance to them is of paramount importance to us,” reads part of the report that was adopted and passed in Parliament on Friday.

The report stated that additionally, each MP’S outstanding debts were deducted.

“The matter is currently being resolved with the ERS, Ministry and the Treasury department. Proof of the monies paid to each Member of Parliament are available and the deductions that were made. These documents are signed by each MP, and these were forwarded to the office of the Clerk of Parliament,” reads the report in part.