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GAW’ZELA IN POTENTIAL CROSSOVER CONFLICT OF INTEREST

16/06/2019 07:57:00 BY MFANUKHONA NKAMBULE

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MANZINI –Will Siphofaneni MP Mduduzi ‘Magawugawu’ Simelane make a huge business sacrifice to avoid a potential conflict of interest?

Umlilo Music Productions, which is under the directorship of the MP, has a business deal with Eswatini Investment Promotion Authority (EIPA) to operate a public facility at Mavuso Trade and Exhibition Centre.

EIPA rented out the facility to the MP’s company to host a crossover gospel show, which is the biggest gospel event in the country as it attracts 20 000 to 25 000 people.

EIPA is a public enterprise while the MP is a public officer in terms of the Constitution of the Kingdom of Eswatini and the Prevention of Corruption Act of 2006.

Impeccable sources, mainly those who are close to the lawmaker, said the show had a potential to make over E2 million when considering the corporate and profit-driven business interest it has generated over the past few years.

QUIT THE BUSINESS
In the event the MP quit the business or forfeits the deal to others, it effectively means he could lose an estimated turnover of E10 million in a period of five years. However, this is based on the estimation that one show has a potential to raise over E2 million. His term of office expires in 2023. MP Simelane earns E46 318 per month, excluding allowances. Based on his current basic salary, he would have made E2 779 080 before tax in pay covering the five-year period.
“That could be a huge sacrifice if he were to lose the crossover permit,” said a source close to the MP.

In an interview, the Siphofaneni MP, who unseated long-time serving politician in Aaron Gundwane Gamedze in last year’s general elections, said he had received advice to consider resigning as a director of Umlilo. He said he was in the process of putting up a structure that would ensure the vision of the company did not fade as a result of his absence from the directorship. MP Simelane mentioned that he had not yet relinquished his shareholding.

The lead singer of the gospel group known as Mduduzi Nezinceku Zamagawugawu pointed out that he would not be lost forever as he would give advice to Umlilo. “I haven’t yet decided who will take over, but I have been advised to consider resigning as a director of Umlilo,” he said.

Asked how many shares he held, the lawmaker said he would not disclose this information at this stage. He was also not in a position to disclose if he was a sole shareholder or if his company had other directors.

“Say I leave the company to LaZwide (his wife), I would still not quit Umlilo,” he said in jest. The section in the law that could disqualifies the MP’s company from doing business with government is Section 27 of the Prevention of Corruption Act.

INTEREST IN COMPANY

The said section reads; “A member or an employee of a public body commits an offence of corruption where that member or employee or an immediate member of the family of that member or employee has a direct or indirect interest in any company or undertaking with which that public body proposes to deal, or that member or employee has a personal interest in any decision which that public body is to make, and that member or employee, knowingly fails to disclose the nature of that interest, or votes or participates in the proceedings of that public body relating to that dealing or decision.” Reads Section 27 (2); “It is a defence to a charge under this section where the person having an interest has first made in writing to the public body the fullest disclosure of the exact nature of interest and has been permitted after that disclosure to take part in the proceedings relating to that dealing or decision.”

On the other hand, section 2 (a) (b) of the Prevention of Corruption Act defines public body as “any government ministry or department or parastatal or any other functionary or institution or traditional council (libandla) when exercising a power or performing a duty or function in terms of the Constitution or any other law or custom’. Hanalora Strydom, the acting Chief Executive Officer (CEO) of EIPA, said Mavuso Trade and Exhibition Centre was just a facility which they rented out to interested users.
“They just come to us to ask ‘can I use your facility’ and we then consider proposals for the use of the facility, which they submit to us for consideration,” said Strydom.
The acting CEO mentioned that there was no tender advertised for the use of the facility for the crossover because EIPA was not the payer but a payee.
“It’s not a procurement thing,” she said. Over the past years, she said it had been Umlilo Music that submitted the proposal for the use of the facility to host the crossover show. Asked if the law was not contravened as a result of a public officer’s company doing business with a public body, she responded; “Those concerns are valid but people should also submit their proposals and we shall consider all of them.
“We consider the one coming up with the best value.” Mathokoza Mtetwa, currently in charge of the Association of Christian Artists of Eswatini (ACASWA), said they worked with the MP’s company because he was their member.
However, Mtetwa, the lead singer of Gospel Singers, said MP Simelane’s company worked directly with EIPA in the leasing out of Mavuso Trade and Exhibition Centre. He said artists engaged to perform during the show were also paid by Umlilo, meaning they were directly or indirectly involved in the project.
Asked about the conflict of interest saga, he said there were implications that could arise in future, particularly now that Simelane is an MP.
He likened the issue to that of Minister of Agriculture, Jabulani Mabuza, the Minister of Agriculture, whose company Blue Diamond has a business relationship with the Municipal Council of Mbabane over the usage of the abattoir at Mbabane Industrial Site.

functions of office
Meanwhile, Section 240 of the Constitution provides that a person who holds a public office shall not assume a position where personal interest conflicts or is likely to conflict with the performance of functions of office. It further says that the public officer, inclusive of the ministers, shall not engage in conduct that is likely to compromise the honesty, impartiality and integrity of that office or likely to lead to corruption in public affairs or which is detrimental to the public good, welfare or good governance. The constitution puts it clearly that a person does not qualify to be appointed, elected or nominated as the case may be, a senator or member of the House if he is a party to or is a partner in a firm or director/manager of a company which is a party to any subsisting government contract and has not made the required disclosure.
However, he may be eligible if he declares the interest to relevant structures.
It must be said that the show attracted 25 000 people last December.