Home | Sports | PROPOSAL TO CUT PARASTATALS BY 18

PROPOSAL TO CUT PARASTATALS BY 18

01/11/2021 08:31:00 BY TIMES REPORTER

Font size:

MBABANE – Should a proposal on the streamlining of public enterprises be implemented by government, these will be cut by 18.

Currently, there are 49 public enterprises and the proposal is to bring them down to 31. Government’s move to cut down the number of public enterprises has been laid bare in an interim report compiled by the Eswatini Economic Policy Analysis and Research Centre (ESEPARC), titled ‘An Analysis of Performance of the State-Owned Enterprises in Eswatini.’ This exercise was sanctioned by government in a bid to explore options for reducing the subventions paid to the public enterprises annually.

Consolidation

According to the ESEPARC report, the proposed closure, consolidation and streamlining of the public enterprises is expected to bring down the total number of public enterprises from 49 to 31. The proposed reforms have been identified as necessary to resuscitate the economy and improve the fiscal space for funding social and economic development. This is one of the ways in which government intends reducing its spending. Currently, government spends over E2.4 billion in subventions yearly to all the 49 public enterprises.

If the ESEPARC recommendations are anything to go by, the major casualties would be the employees of Sebenta National Institute, Small Enterprise Development Company (SEDCO), Eswatini National Industrial Development Company (ENIDC) and Eswatini National Housing Board (ENHB). ESEPARC has recommended that these companies should be totally closed down and their assets sold. The report states that Sebenta National Institute was now deviating from its core mandate of improving adult literacy, but now tapping into technical and vocational education and training (TVET) skills development.

“Government must close the project once the current group graduates,” reads the report. Government has been advised to repurpose the institution for an establishment of a one non-formal education institution to co-ordinate the skills development centres such as MITC, Mpaka and Nhlangano vocational centres. The ESEPARC report further recommends that government should dissolve the Eswatini National Housing Board (ENHB).

“Government can repurpose the entity by transforming it into a leaner unit under the Ministry of Public Works and Transport for leasing civil servants houses and the maintenance of government houses and buildings. There is need to rationalise the mandate, conduct an inventory of assets, sell some of its assets, explore the Sectional Title Act and transform it to focus on a new mandate if government finds it valuable,” the report reads in part.

Regarding SEDCO, government has been advised to carry out an inventory of assets, consolidate the functions of the company so that it becomes a subsidiary of FINCORP. It is envisaged that FINCORP will establish a fully-fledged MSME business clinic that can support the generation and operations of viable MSMEs in Eswatini.

Recommendation

Also earmarked for business closure is ENIDC. The recommendation is that government should finalise any outstanding investment deals and dissolve the institution. ESEPARC’s view is that government can ensure the manufacturing sector investment through IDCE, FINCORP and EswatiniBank. Other public enterprises that could cease being stand-alone are the National Agricultural Marketing Board (NAMBoard), National Maize Corporation (NMC) and Cotton Board. It has been suggested that these companies should be consolidated into one entity under Eswatini Water and Agricultural Development Enterprise (ESWADE). Regarding Eswatini Dairy Board, the report proposes the establishment of a new livestock development enterprise under it.

Another proposal is that a new Tourism Development and Promotion Enterprise be formed to be in charge of the Eswatini National Trust Commission (ENTC), Eswatini Tourism Authority (ETA) and Eswatini National Council of Arts and Culture (ENCAC). The opinion here is that government should use the ENTC facilities to house the new enterprise to spearhead swift commercialisation of the cultural villages and operationalisation of the ICC&FISH and Pigg’s Peak Hotel.
“Use the subvention to ENTC and ETA to restructure the two entities in order to establish the new enterprise,” reads the report.

Advocate

Meanwhile, the Ministry of Sports, Culture and Youth Affairs has been called upon to continue advocating for youth, sports and culture issues. The report calls for the ministry to strengthen the co-ordination of youth issues and support resource mobilisation to encourage investment in youth programmes. It has been further proposed that the Eswatini National Youth Council should become the anchor of public enterprise through which the Ministry of Sports, Culture and Youth Affairs may implement its mandate. “The main function is to sensitise and co-ordinate Eswatini’s youth and ensure that it channels them to the relevant private and public institutions for access to services.”

The report further suggests that the Youth Council can house the Youth Fund, through which youth entrepreneurship and MSMEs development can be supported. “Likewise, the Eswatini Sports and Recreation Council (ESRC) can be part of the National Youth Council, but become a department focusing on the development of sports and recreational activities in Eswatini. The Eswatini National Council of Arts can be consolidated under Eswatini Tourism Development Enterprise so that it becomes a specialised department focusing on the development of arts and culture in Eswatini.”