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MANZINI SURPLUS UP 32%

29/09/2021 08:10:00 BY ASHMOND NZIMA

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MANZINI – The country’s biggest city, Manzini, is celebrating a notable increase in surplus.

Surplus shot up from about E17.6 million to over E25.98 million. This is as per the municipality’s 2020/21 annual report. Calculations by this publication show that the increase in surplus is at least 32 per cent when compared to the previous year. In the report, it was highlighted that rates assessments and billing for the financial year under review was accomplished for a total of 4 460 properties. A sum of E82 million in rates revenue was expected during the reporting financial year. “Collection targets were set wherein 92 and 20 of current rates and arrear rates, respectively, were to be collected.

“Total rates collection during the financial year under review amounted to over E96 million. This amount comprised of E39 million in general rates and E57 million in government rates,” shared the town. The municipality shared that general valuation process was undertaken during the financial year under review as per the Rating Act, 1995. A draft valuation roll was produced and objections received from affected property owners. A valuation court was constituted as per the Act and a total of 532 objections were adjudicated upon.

Valuation

The process reportedly produced a new valuation roll whose total value was over E5 billion and was to be used for rates assessment during the next five years. Meanwhile, regarding capital projects; CEO Lungile Dlamini said they were able to make considerable headway in as far as preparations for delivery of the Bosco Bridge was concerned. “ By the end of the reporting financial year, all pointers were to the effect that the project would surely be delivered during the following financial year,” she said. With regard to public private partnerships, the town reportedly continued to co-ordinate development of the Fairview Mixed-Use Commercial Centre project through PPP model. The heads of PPP agreement (HoAs) were reportedly finalised and signed by partners and an Environmental Impact Assessment (EIA) report obtained. By the end of the reporting period, the municipality, together with its development partner, was in negotiations with a possible financier. The city further shared positive news regarding the Eswatini National Provident Fund (ENPF) loan infrastructure. On July 20, 2005, council secured a loan from the ENPF for the primary purpose of engaging in capital projects.

Entitled

In terms of the loan agreement, the council was entitled to make drawdowns to the extent of E15 million. Investopedia defines a drawdown as a peak-to-trough decline during a specific period for an investment, trading account, or fund. A drawdown is usually quoted as the percentage between the peak and the subsequent trough. As at March 31, this year, the council had exhausted drawdowns. The initial agreement of the loan was that it shall be repayable in two half yearly instalments (payable). Interest on the loan was to be calculated at a simple interest rate determined by Nedbank (Eswatini) Limited prime overdraft rate plus three per cent, subject to the condition that the minimum interest payable by the council should be 13 per cent per annum. In March 2011, council then entered into another agreement with ENPF for the cession of claim to rates towards the payment of this loan commencing with the 2010/11 rates. Interest was agreed at prime rate plus 1.5 per cent. The initial agreement of two half yearly instalments payment then fell off.

Agreement

In November 2015, council entered into another loan agreement with ENPF where an additional E10 million was secured. Interest on this new loan was calculated at a simple interest rate determined by Standard Bank (Eswatini) Limited prime rate plus two per cent. Council again entered into another agreement with ENPF for the cession of claim to rates towards the payment of this loan commencing with the 2017/18 rates. The loan duration is 10 years, payable in annual instalments of E1 999 201 annually.
In January 2018, an additional E10 million was issued to the Council. Interest on this new loan was calculated at a simple interest rate determined by Standard Bank (Eswatini) Limited prime rate plus two per cent. Council again entered into another agreement with ENPF for the cession of claim to rates towards the payment of this loan commencing with the 2018/19 rates. The loan was fully settled during the year under review.