Questions on where govt will raise E500m
MBABANE – Where shall E500 million for the country’s Reconstruction Programme come from?
This is due to the fact that government is not yet out of the red.
Its wage bill is one of the highest in the southern African region. It needs approximately E1 billion per month to pay salaries for more than 40 000 workers on its payroll.
Receipts from the Southern African Customs Union ( SACU) are expected to decline as highlighted by Minister of Finance Neal Rijkenberg in his budget speech presented to the House of Assembly on February 26, 2021.
Rijk en berg said SA CU receip ts declined from E 8.35 billion in 2020/ 21 to E6.38 billion in 2021/ 22. Non- SACU revenue was E12.66 billion.
Driven by higher- t han- average SACU receipts, revenue collection in 2020/ 21 was at record highs. As a consequence of the pandemic, the minister said SACU receipts were projected to decline significantly and steadily over the medium term.
The minister of Finance put it this way: “With the projected pressure on our revenues, the next three years are going to be even tougher.”
The E3 billion loss incurred as a result of property destruction during the civil unrest has worsened the situation.
REBUILD
His Majesty the King ordered government to set aside E500 million to rebuild the factories and shops that were burnt by protesters.
He urged companies, agencies, individuals to contribute towards the balance of E2.5 billion.
Sets a bile Dlamini, the Communications Officer in the Ministry of Finance, said the Public Budgeting Committee ( PBC) was busy working on logistics of drafting a supplementary budget, which the minister would present to Cabinet for approval.
She said it was difficult at this stage to indicate where the money would be sourced. She hoped discussions on the supplementary budget would hinge on the potential source of the fund.
“We can’t even state when the money will be available for access because we are still working on the supplementary budget,” she said.
Under normal circumstances, t he supplementary budget, after Cabinet approval, is tabled before Parliament.
Government usually sources funding through loans, treasury Bills and bonds, which are usually advertised by the Central Bank of Eswatini.
DAMAGES
Property damages caused by some people who participated in pro- democracy protests throughout the country were estimated at E 3 billion so far.
This was disclosed by Senator Manqoba Khumalo, the Minister of Commerce, Industry and Trade.
K hum a los aid business property damages t hat occurred nationwide resulted in 5 000 job losses.
He said informal traders and SMEs were affected by the burning of the commercial buildings, which was accompanied by the looting of goods.
The minister said the damage was extensive such that business establishments across the country were affected. He said factories, parastatals, sugar mills and those small businesses could not be spared from the arson attacks.
Movable assets such as trucks were burnt as well. He disclosed the figures during the touring of the damaged structures by the then acting Prime Minister Themba Masuku, the substantive Deputy Prime Minister. Khumalo also met some of the property
‘‘ She said it was difficult at this stage to indicate where the money would be sourced. She hoped discussions on the supplementary budget would hinge on the potential source of the f und.”
owners who included Lincoln Motsa, the director of OK Stores whose eight shops were damaged. It must be said that trouble began when protesters at Msunduza in Mbabane and Siphofaneni clashed with the police over the delivery of petitions to Mbabane East Inkhundla’s MP Harries ‘ Madze’ Bulunga. Clashes continued on the following day in Siphofaneni, where police stopped the youth from petitioning MP Mduduzi ‘ Gawuzela’ Simelane who was determined to receive the document out lining their demands. The security agents implemented an order from the then acting prime minister banning the delivery of petitions at various tinkhundla centres. The acting prime minister said he banned the gatherings because of the threat posed by the third wave of COVID- 19.
EXTENSIVELY
The first notable casualty was a truck belonging to Shoprite, which was extensively burnt in Siphofaneni. That was the beginning of more trouble to befall Eswatini.
The burning of property spread in many parts of the country as shopping complexes and stores such as OK and Buy Cash Hardware were torched.
Business Eswatini also condemned the destruction of property, mentioning one liSwati who successfully grew his businesses i n publi c vi e w. Other Eswatini owned businesses that were severely burnt include Bandag Tyres, where 100 jobs were reportedly at stake and Buy Cash in Pigg’s Peak. In Nhlangano, a building that houses, among others, OBC Butchery, Mr Price, Sleep Masters, Galito’s was burnt as well.
As the destruction of property occurred all over the country, roads were inaccessible as the looters vandalised cars.
The situation has seemingly calmed down after government deployed the army to the streets to ensure order and peace.
Government said it might take about 10 years for many of the affected businesses to recover. In a statement, Lincoln Motsa, the co- director of OK Stores, explained to the Times SUNDAY that his businesses suffered a combined loss of E60 million.
LOOTED
Motsa mentioned eight of his stores which were looted. He said a complement of 500 workers; management team and customers were affected. The looted and vandalised stores included four OK Stores at Kwaluseni, Mathangeni, Mhlaleni and Logoba. There were two liquor stores that were looted at Kwaluseni and Mathangeni, with two Savemart stores at Luyengo and Mbikwakhe also vandalised.
Out of these, he said, four stores were set on fire and these were Kwaluseni, Mathangeni, Mhlaleni and Luyengo. The businessman lamented that they were burnt beyond recognition.
“Out of these, four ( 4) were set on fire ( Kwaluseni, Mathangeni, Mhlaleni, and Luyengo) with two burning beyond recognition, following these unfortunate incidents,” he said.
“The estimated value of the damage is about E60 million, which is stock and fixtures and fittings, excluding the buildings. It is really disheartening that so many of our dedicated employees ( estimated 500 staff), management team, their extended families, and customers have been affected by this.”
He explained that the OK Franchise Division and its owners did not engage in political matters as they have always focused effort and energy on selling food to the communities that they served, creating jobs and providing a safe working environment for all their workers.
PROUD
As a proud OK store owner, he said he wanted nothing more than to serve the people of Eswatini.
“Our teams’ mission is simple, and that is to supply quality food at low prices to the people of this country,” he said.
Motsa said OK Stores had always operated independently from government and would continue to do so.
He said the business is owned solely by him and his wife, with a shareholding that was split between these two people and nobody else, despite the false statements that were made on social media.
He said they did not have a political agenda as they were not in the business of politics.
He said their agenda was to serve the people of Eswatini, while creating employment for them.
This, agenda, he said, had not changed.