Home | News | EX-CABINET COMMITS GOVT TO E45.6M COSTS

EX-CABINET COMMITS GOVT TO E45.6M COSTS

22/10/2023 15:43:00 Mfanukhona Nkambule

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MBABANE – On its last day in office, the previous Cabinet committed government to a cost of about E45 601 800.

This is despite the fact that there was an opportunity by the Cleopas Sipho Dlamini-led Cabinet to avoid the costs by not implementing through an amendment of Finance Circular No.2 of 2013. Their last day in office was on the Wednesday of September 27, 2023. Cabinet sits on Tuesday, effectively meaning that their last meeting was on September 26, 2023. Notably, a day after their last meeting, the Ministry of Finance issued a memorandum that guaranteed the ministers at that time a sum of E786 227.64. The memo is dated September 27, 2023, the last day of the previous Cabinet’s stay in office. It is titled: ‘Re: Addendum to Finance Circular No.2 of 2013, terms and conditions of service of Eswatini politicians’.
Of the 19 Cabinet ministers who were in office, there were only three who were not eligible for reappointment to Cabinet, but were eligible for re-election or reappointment to the House or Senate. These are Jabulani Clement Mabuza (re-elected), David ‘Cruiser’ Ngcamphalala (re-elected) and Moses Vilakati (lost elections).

not eligible

They were not eligible for reappointment to Cabinet on the basis that they had already served two consecutive terms as ministers. The other 16 ex-ministers, including the then prime minister (PM) and his deputy, were eligible for reappointment in terms of the Constitution of the Kingdom of Swaziland (Eswatini). On September 26, 2023, they were not eligible for the ex gratia payment as it was a facility for former parliamentarians to assist with the costs of adjusting to non-parliamentary life. However, on September 27, the ex gratia also belonged to them. It meant the 16 ex-ministers, whether reappointed or re-elected, would receive the money. If they had allowed the government to strictly apply Finance Circular No.2 of 2013 without any amendment, there was to be no burden for the taxpayer to part with E12 579 642 in payment of ex gratia. This is total amount of money for the 16 ex-ministers who are eligible for reappointment to Cabinet.

Presently, there are 10 ex-ministers who are back in Parliament, and these are Thuli Dladla, Manqoba Khumalo, David ‘Cruiser’ Ngcamphalala, Lizzie Nkosi, Princess Lindiwe, Mabulala Maseko, Jabulani Mabuza, Phila Buthelezi, Dr Tambo Gina and Prince Simelane. Outside Cabinet, there are politicians who returned to Parliament. They include Nomalungelo Simelane, Mduduzi Matsebula, Ndumiso Mdluli, Tony Sibandze, Marwick Khumalo, Madala Mhlanga and Lorraine Nxumalo. His Majesty the King is yet to appoint 20 senators to constitute a Senate total membership of 30. The House of Assembly has already elected the 10 members of Senate who include four members who served in the previous Parliament. It is not certain whether Ingwenyama will reappoint some of the former ministers. Since packages for royal councils (emabandla) and regional administrators are linked to the terms and conditions of service for parliamentarians, it meant the costs would escalate. Tradition has it that Ingwenyama does not make major changes in the royal councils, except members swapping positions. In fact, there are members of emabandla who have been in office since 1996.

calculations

Conservative calculations (at minimum) indicate that the government will pay members of emabandla, whether reappointed or not, a sum of E29 484 150. Adding the total package of emabandla to the E12 579 642 for 16 ministers eligible for reappointment to Cabinet which equals to E42 063 792.00. The cost of E42.063 million excludes the ex gratia of the seven parliamentarians who are back in Parliament. Excluding Nomalungelo Simelane, who joined Parliament last year, the cost for six parliamentarians would be E3 538 008.00. Adding the cost for the six MPs to those of emabandla and ex-Cabinet, they escalate to E45 601 800. The costs will shoot up if the ex-parliamentarians are reappointed to Senate by the King. Reads Article 4.6.7 of Finance Circular No.2 of 2013, which is being used in the determination of payments for the 11th Parliament: “The ex gratia payment is a grant that is payable to former parliamentarians to assist with the costs of adjusting to non-parliamentary life. The ex gratia payment is available to all parliamentarians who fail to be re-elected or re-appointed into the new Parliament.”

This clause was amended to read as follows: “The ex gratia will be paid as a once-off payment, equal to twelve (12) months (one year) basic salary before tax; paid to all parliamentarians and designated office bearers at the end of the 11th Parliament. The circular will be effective from September 27, 2023.” When dissolving Parliament in July 2023, the King did not disband his Cabinet. On August 8, 2023, a gazette was issued that announced that the Cabinet would be in office until September 25. Another gazette was issued on September 18, which extended the ministers’ stay in office by two days. The extension was announced by the Attorney General (AG), Sifiso Khumalo. It meant that the last day in office for the ex-Cabinet was September 27, 2023. The Ministry of Finance had issued a memo dated July 25, 2023, providing that salaries and allowances for parliamentarians accruing to them under Finance Circular No.2 of 2013 shall be ‘paid in full until the day preceding the first meeting of the House, following the general election. The first meeting of the 12th Parliament was on October 6, 2023. It meant the payment of salaries and allowances was stopped on October 5, 2023.

adjustment

There is a possibility that the ex gratia costs would increase as the general principle dictates that the last pay determines the calculation. Politicians also benefitted from the four per cent cost-of-living adjustment awarded to civil servants. The July memo was signed by then Acting Principal Secretary (PS) Nkululeko Dlamini. The PS’s office stamped it on July 25, 2023.
The payments are reportedly based on Section 134 (1) (b) as read with Section 134 (6) of the Constitution of the Kingdom of Swaziland (Eswatini). “Following the dissolution of Parliament on July 11, 2023, provisions of Section 134 (1) (b) read together with Section 134 (6) are of application,” partly reads the memorandum. Section 134 (6) refers to the King’s powers to dissolve Parliament.

On the other hand, Section 134 (6) of the Constitution provides as follows: “Where Parliament is dissolved in terms of Subsection (1) (b) the Members of Parliament shall be deemed to have vacated office on the day, but one of the first meetings of the House after the general elections.” The Ministry of Finance stated that the remuneration arrangements of the parliamentarians stood as follows:
* Circular No.2 of 2013 should be applied strictly.
* Parliamentarians’ salaries and allowances accruing to them under Circular No.2 of 2013 to be paid in full until the day preceding the first meeting of the House following the general elections.
* This memorandum shall also apply to the support staff of the parliamentarians.
* Ministers are expected to calculate the exit packages to parliamentarians as per Circular No.2 of 2013, Section 4.6.8 and for their support staff as per Finance Circular No.2 of 2017.

12th Parly’s ex gratia

It must be said the 12th Parliament would be guided by the new working document styled Finance Circular No.2 of 2023 dated August 2, 2023. In the new circular, the ex gratia will be paid as a once-off payment, equal to 12 months basic salary before tax. It will also be paid to all parliamentarians and designated office bearers at the end of the 12th Parliament. It is not certain if the payment arrangement will remain the same as this document is specific that the ex gratia is for members of the 12th Parliament. Alpheous Nxumalo, the Government Press Secretary, referred enquries to the Ministry of Finance, as they were better placed to respond to the questions. Setsabile Dlamini, the Communication Officer in the Ministry of Finance, said the payment of ex gratia to all the parliamentarians would not come with an extra cost as the money had been included in the budget. When delivering the budget speech for this financial year in February 2023, Neal Rijkenberg, the former Minister of Finance, said while there were provisions for new and non-discretionary items such as salary adjustments, elections and exit packages for politicians, care had been given to make enhanced provisions for previously compromised budget lines and programmes.

These included tertiary education scholarships, free primary education grants, more grants for the elderly and the people with disabilities, youth empowerment programmes, public investment and capital expenditure. In April 2023, the ex-Minister of Finance, told the Times SUNDAY that the issue of the gratuity was a very touchy subject, adding that he was aware that he would lose the argument should it go to debate. He suggested that the issue should be addressed by the Royal Commission entrusted with the responsibility to review the conditions of service for politicians.

implemented

The commission has made recommendations on the ex gratia, which the government has implemented. The previous portfolio committee of the Ministry of Finance, which was led by Marwick Khumalo, did actually recommend that the ex gratia should be paid to all parliamentarians. In its report, the portfolio committee made a recommendation to the effect that since Circular No.2 of 2013’s implementation had not been consistent and has been subjected to irregular unwritten amendments, the ex gratia payments for all deserving politicians as calculated and provided for in this year’s Appropriation Bill 2023/24 should be paid immediately after the dissolution. The recommendation was also to the effect that the contradictory and unconstitutional clause in the circular should be discarded forthwith. Furthermore, the committee made it clear that once the ex gratia budget allocation had been passed by the House, it could not be altered by the ministry by way of selective disbursements to politicians, based on whether they were re-appointed or not, as that would not only be in contemptuous of Parliament, but would be in contravention of the Appropriation Act after it had been assented to by His Majesty King Mswati III.

According the report, government was expected to make sure that the law was not tampered with by any subsidiary authority. The recommendation, according to the report, emanated from a finding by the committee to the effect that the circular had serious irregularities since it longer represented the content of the report upon, which it was produced, especially on issues that included the remuneration rate of presiding officers and the ex gratia payments.

Basic salary

According to the new circular, the recommended remuneration structure includes a basic component (salary) with a provision for an amount to which the Second Schedule of the Income Tax Order 1975 (as amended) applies. This is not all-inclusive as the government is expected to contribute over and above this amount for other benefits and allowances.
It is said that the salaries for parliamentarians, designated office bearers and the attorney general will continue to be linked to those of the Civil Service through the secretary to Cabinet for the duration of the 12th Parliament. The salary of the secretary to Cabinet and head of the Public Service will continue to be used as a base. It will allow placing the basic salary of the prime minister at 50 per cent above that of the secretary to Cabinet.

Salaries for all other parliamentarians, designated office bearers and the attorney general will be determined as a ratio of the prime minister’s salary. The sliding scale ratio reflects the political and administrative structure of the State, set out in a ‘single spine’ salary structure, to ensure alignment in all three arms of government. The Ministry of Finance stated in the circular that the salaries for parliamentarians will continue to be linked to those of civil servants, considering that all Arms of Government have to work together to drive government’s strategy for development. According to the ministry, the driver in the implementation of the strategy is the civil service. While the terms and conditions of service for parliamentarians and designated office bearers are adequate to ensure the recruitment of suitably qualified people into Parliament, the ministry said they should, however, remain fair in comparison to those of the civil servants. Therefore, these salaries should be sustainable and in line with the prevailing economic situation.