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‘WE ARE READY FOR CUTS’

12/11/2018 03:32:00 BY STANLEY KHUMALO

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MBABANE – “Come what may, we are ready for pay cuts.” Some of the newly-appointed Cabinet ministers are ready and willing to take a salary reduction from what the previous ministers were paid.

The members of the Executive who were reached for comment said to them, being in office was not for financial gain but was for public service.
The pay cut that they were interviewed on is based on the recommendations of Finance Circular No.2 of 2013 which states that the remuneration of politicians should be based on the economic status of the country.

The country is said to be in the worst financial crisis compared to that of 2011. Given that, the remuneration of politicians and other stakeholders has in several social gatherings come to the fore, including at the People’s Parliament (Sibaya).

Also, in April 2018, His Majesty King Mswati III appointed the Phil Mnisi-led Royal Commission to review salaries for politicians.
Mnisi, who is also Eswatini Sugar Association Chief Executive Officer, with his commissioners, have to consider the recommendations made in Finance Circular No.2 of 2013. An excerpt of the Circular reads: “The basic salary of the prime minister will be benchmarked against similar sized (by GDP) Southern Africa Development Community (SADC) countries every two years; and discounted for economic conditions and the affordability of the government.”

Eswatini is considered as one of the countries with the highest wage bills in Sub-Saharan Africa. The wage bill stands at about E850 million per annum.
When considering the assertion in the standard benefits and allowances for parliamentarians, where Finance Circular No. 2 of 2013 states that the basic salary of the prime minister would be benchmarked against similar sized (by GDP) SADC countries every two years; then the 10th Parliament was excessively paid.

The remuneration of the 10th Parliament was higher than some of the SADC leading politicians as ministers earned more than the premier of Lesotho. Economists suggested that politicians should take a pay cut of up to 20 per cent.

Circular

Using Finance Circular No.2 of 2013 as the basis for the remuneration of the politicians, who include Members of Parliament (MPs), presiding officers and ministers, among others, they earn E7 493 724.70 per month. In five years, they would have earned E449 623 482.

However, with the 20 per cent salary cuts that have been suggested by economists, it translates to them taking home E359 698 785.60 in five years.
In the five years, government would have saved E89 924 696.40.

This is only remunerations for the PM, the deputy prime minister and the 18 Cabinet ministers. Some of the incoming ministers stated that despite the completion of the salary review process by the Royal Commission, they were ready to take cuts from what the previous Cabinet was remunerated.

Minister of Finance Neal Rijkenberg said: “The fact that I have taken a pay cut (whether the circular suggests salaries should go up or down with 20 per cent) should be a reflection of my willingness to do what it takes to get our country out of the financial challenges that we face.” He said it was an honour and privilege for him to serve the country, regardless of the salary level.

The minister of Finance further noted that the Royal Commission was still busy with their recommendations. Rijkenberg said he could only be definite of what the pay structures would be once the results of the commission were gazetted. He said regarding the fiscal challenges that the country was facing, Cabinet would be working on a clear way forward, taking into consideration the submissions at Sibaya. He said these submissions would be presented to His Majesty King Mswati III and then the nation in due course.

reduction

Also, Senator Themba Masuku, the DPM, reiterated Rijkenberg’s remarks and said: “The money is not an issue with me but what is essential is public service. I once took a pay reduction of about E130 000 when I left the United Nations to come back into the political arena of the country.”

Masuku further said pay cuts were not an issue with him as he also took a 35 per cent pay reduction when he became a minister in the mid 80s. He emphasised that serving the country was essential more than any financial gain that people may think of when joining politics.

Another Cabinet member anticipating a pay cut was Minister of Health, Lizzie Nkosi. The businesswoman said; ‘pay cuts are imminent as they have come up in different forums several times”.
Nkosi said she was ready to take it. “We have to open up to it,” she said.

She noted that it was premature to come up with a figure that could be deducted from her pay as the report by the Royal Commission was still being prepared. Nkosi was supported by Minister of Labour and Social Security Makhosi Vilakati. He said: “I would not mind a pay cut as I was appointed to work; so, whatever comes is a bonus.”

Minister of Sports, Culture and Youth Affairs Harries Bulunga said he would take a pay cut as well. This is a stance he had taken when the same question was posed to him while he was MP-elect.