MPS: PSPF CANNOT BE PARASTATAL

LOBAMBA – Cabinet has, with immediate effect, been instructed to nullify and revoke Legal Notice No. 150 of 2014 which had turned the Public Service Pension Fund (PSPF) into a category A government enterprise. 

This was a resolution made by the House of Assembly yesterday during a heated debate, where the MPs unanimously agreed that government had acted illegally when it converted the fund into a government enterprise yet it did not pay any subvention and further that none of the stakeholders were involved when this move was made.

This was during the debate of the report of the select committee which was tasked with investigating any irregularity or illegality into the conversion of PSPF from  a privately- owned entity to a public enterprise in terms of the Public Enterprises (Control and Monitoring) Act No.8 of 1989. 

The committee was chaired by Hhukwini Member of Parliament Saladin Magagula.     
The MPs said those involved in the move should not only be investigated by the Anti Corruption Commission, but should also be arrested, removed from their positions and be kept at the Sidwashini Correctional Services facility.
This resolution is a victory for the public sector unions who had also expressed outrage that they were not involved in the entire process, which was made in the absence of the Board.

In motivation MP Magagula said they had engaged all stakeholders during their investigation and none of them had been consulted by government when this move was made.
“We spoke to the chief executive officer, Board members both old and current, pensioners, public sector unions and all of them said they were not contacted and only knew this move by government to be a rumor,” said Magagula.
He said they had consulted Prince Lonkhokhela who is the former Board Chairman of PSPF and also sought legal advice.

“Most of the stakeholders defined this as a fund and not an enterprise, especially because it is not owned by government, but government only contributes a certain percentage which was agreed to with public sector unions,” he said.
Seconding the motion was Manzini North MP Jan Sithole, who said the money at PSPF belonged to public servants and it was not a government company and, therefore, government could not make decisions without involving the stakeholders or without any of the Board members being present.

Resolution

Matsanjeni North MP Phila Buthelezi said he did not even have the energy to participate in the debate because, whatsoever resolution was made, it would not be implemented by government.
“The report is very clear that a lot of wrong was done when the fund was changed into a government company, ngumkhuba nje lomubi and this is what drives the economy to the dogs,” said Buthelezi.
He said the Minister of Finance, Martin Dlamini, should, with immediate effect, revoke the Legal Notice.

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