Marwick reveals Eswatini’s
µµThe allegations are true that government signed a loan agreement with Exim Bank of Taiwan that has a clause that stipulates that government will forfeit properties in the event she defaults on repayment.”
MBABANE – It has always been said that loans from Mainland China, as opposed to those from the 5epublic of China Taiwan , are a debt trap. Taiwan has always used the notion to discourage countries from switching alliances to Mainland China and this is one of the reasons many ema6wati have always believed to be the main glue holding the two countries¶ diplomatic relations together.
+owever, new information suggesting that the grants and loans that Taiwan has been e[tending to Eswatini have stringent conditions attached to them has come to the fore.
2ne of these loans is for the construction of the International Convention Centre and )ive 6tar +otel, which is Nnown as the ICC )I6+, that is proMected to cost around E billion upon completion.
'uring the sitting of the +ouse of $ssembly portfolio committee on economic planning and development, it emerged that there could be government properties which have been put up as collateral should Eswatini fail to repay the loan to Taiwan.
Member of Parliament MP MarwicN .humalo, an e[perienced legislator, who is serving an unprecedented fifth consecutive term as a legislator, raised the issue of the stringent loan conditions that could see the country losing the ICC )I6+ to Taiwan.
“+ow true is it that the government signed an agreement with the Taiwanese Government to the effect that should the government fail to service the loan, the government will cede the ICC and )I6+ building to Taiwan"´ .humalo asNed the Minister of Economic Planning and 'evelopment, 'r Tambo Gina.
HONOUR LOANS
The minister did not deny the allegation instead, he said there were properties that the country stood to lose if it failed to honour the loans.
“The allegations are true that government signed a loan agreement with E[im %anN of Taiwan that has a clause that stipulates that government will forfeit properties but not specifically the ICC and )I6+ in the event it defaults on repayment,´ Gina said.
MP .humalo followed up by asNing the minister as to why government was accepting Taiwanese grants and loans that come with stringent conditions.
“...why does it seem liNe we are forced to taNe these loans and we are e[ploited"´ .humalo wondered.
+e made an e[ample that the Taiwanese Government now wanted Eswatini to enter into an agreement regarding the strategic oil reserve proMect, yet the Ningdom was capable of funding this infrastructure development through the
cents per litre of fuel levy that is paid by motorists. Though .humalo never mentioned it, Taiwan also financed the country¶s construction of the .ing Mswati III International $irport.
Gina, in response, said all loans taNen by government went through an approval process of checNs and balances by the Ministry of )inance and relevant entities.
“If the loans conditions are not favourable, then government does not commit to such,´ he said.
The Taiwan Embassy to Eswatini, when asNed by the Times 681'$< about the loan conditions and issue of whether Eswatini had entered into a debt trap with Taiwan, referred enTuiries to the local Ministry of )inance.
REFUTED ALLEGATION
“The embassy is not the lender and cannot answer the Tuestions on behalf of the relevant ministry. Please consult the Ministry of )inance,´ said $ndrew Chiafeng, the embassy¶s spoNesperson.
Minister of )inance 1eal 5iMNenberg refuted the allegation and gave a response that was in total contradiction to what his colleague Gina said.
+e said when they were negotiating with the E[im %anN of Taiwan, they had a standard clause in the agreement on sovereign immunity.
“2ur attorney general informed us that the Constitution does not allow it. :e discussed this with the E[im %anN, they understood it and removed the clause. There is no waiving of sovereign immunity or assets pledged to Taiwan,´ 5iMNenberg said.
+e said the loan from Taiwan, that became an $ct after passing through Parliament, was a commitment from Eswatini to repay the loan.
“The official from the Ministry of Economic Planning is probably recalling the original draft loan agreement that was never signed,´ the minister said.
+e said Minister Gina stated in Parliament that there was no such agreement, but the written responses said there was, which was a bit confusing.
+owever, MP .humalo said there was no mistaNe in what Gina informed the portfolio committee.
“+e is on record as having said this and it is on the +ansard. :e believe this because it is not the first time he is saying it,´ the MP said.
+e said following what the )inance minister then later came out to say, µto this day I remain confused¶.
$n impeccable source disclosed that the allegations were indeed true and it was one of the reasons that it tooN a while for the two governments to sign the ICC )I6+ loan agreement.
“This was around the time when many countries were switching their alliances from Taiwan to Mainland China. There was, therefore, panic on the part of Taiwan which feared that it would give the loan to Eswatini and then the Ningdom would later also switch alliances. $s a result, Taiwan wanted some form of guarantee that Eswatini will not dump them for Mainland China, hence the stringent conditions on the loan,´ related the source.
In 6eptember , Taiwan $mbassa