Home | News | CTA deficit to be written-off

CTA deficit to be written-off

19/08/2013 06:50:00 BY WELCOME DLAMINI

Font size:

MBABANE –The financial deficit of the Central Transport Administration (CTA) will be scrapped.

CTA, which is a government department responsible for the procurement and maintenance of government vehicles, has over the years been considered a financial drain to the State.

Theft and other illegal practices by employees have seen the department failing to be self-sustaining thus government had to continuously pump in millions of Emalangeni into it for operations to carry on.

This made CTA to be considered one of the worst-run government departments in the kingdom.
The levels of corruption were further exposed this year when former General Transport Manager Polycarp Dlamini was sentenced to seven years in jail for his role in defrauding the department around E11 million.

The other suspects he is alleged to have committed the offence with are yet to have their day in court.
In December last year, Minister of Public Works and Transport Ntuthuko Dlamini told Parliament that E3 billion of taxpayers’ money was spent investigating corruption at the CTA since the 1990s.

He said ever since corruption was detected at the CTA, many specialists had been engaged but their recommendations were never implemented. At one point, the financial of the CTA was reported to be around E400m.
The scrapping of the deficit is because the department will now assume the status of being a Category A public enterprise.

This has been made possible by the passing of the Central Transport Organisation Act of 2013.
A government gazette dated August 9, 2013 has since been published and the CTA will now be known as the CTO.
In terms of the CTA deficit, the gazette states: “The current financial deficit shall not be transferred to the Organisation and the Organisation shall not be regarded to have debt and owing to the Government as at the date of transfer.”

Except for the deficit, the CTO shall inherit all assets that were held by CTA and no amount will be paid for the acquisition. The Minister of Finance, who is responsible for public enterprises, shall be responsible for the approval of the acquisition. “On the relevant transfer date, every asset and right of the government which the Minister has directed shall be transferred to the Organisation, together with any liability or obligation attaching to it, shall vest in the organisation, subject to any terms and conditions specified by the Minister,” the Act states.
Meanwhile employees of the Central Transport Administration who will be employed by the CTO shall work under contract.

It further provides: “All bonds, deeds, contracts, instruments, documents and working arrangements which subsisted immediately before the relevant transfer date in relation to any assets, right, liability or obligation transferred to the organisation under this section and to which the State was a party shall, on and after that date, be as fully effective and enforceable against or in favour of the organisation as if, instead of the State, the organisation had been named therein.”
New contracts for CTO staff

MBABANE – Employees of the Central Transport Administration who will be employed by the CTO shall work under contract.
The same shall apply to every other employee to be engaged by the CTO.
There are already fears that employees of the CTA will lose their jobs with the establishment of the CTO.

They fear a similar situation that happened when the Customs and Excise department was replaced by the Swaziland Revenue Authority which resulted in some employees being offered packages and new staff engaged.
The Central Transport Organisation Act provides that employees of the CTA shall be engaged by the CTO as long as they agree to the transfer.

“The terms and conditions of employment shall be determined by the Board in consultation with the Minister responsible and the Minister of Finance. Any employee offered employment shall sign a new employment contract with the Organisation on the date of transfer,” reads the Act.
The law also states that civil servants who is offered a job at the CTO but turns it down and later leaves the civil service and takes her pension package shall not be engaged by the Organisation in any capacity for a period of 10 years – unless the Minister responsible consents to the engagement.

CEO to take over GTM post
MBABANE –The position of General Transport Manager (GTM) shall be replaced by that of Chief Executive Officer at the Central Transport Organisation.

Currently, the GTM is head of the soon-to-be-abolished Central Transport Administration (CTA).
According to the CTO Act, the CEO shall possess a minimum qualification of a degree in fleet management or business administration.
The CEO shall also have a minimum of five years relevant experience in a senior management position.

“The Chief Executive Officer shall have no monetary interest in any other business, vocation or employment which is likely to create a conflict of interest with the position,” the Act reads.
The CEO shall be in charge of the overall operations of the Organisation and shall report to the Board.