Courts

MBABANE – The Eswatini Consumer Forum (ECOF) has filed an urgent application to interdict and suspend construction works on Phase 1 of the CBE Complex in Ezulwini.

In the application, ECOF cites several key public and private entities, including the Construction Industry Council of Eswatini (CIC), the Central Bank of Eswatini (CBE) and the Eswatini Public Procurement Regulatory Agency (ESPPRA), alongside the contracting consortium Ingcebo Joint Venture and Stefanutti Stocks-linked entities.

In court papers deposed to by ECOF Chairperson Mandla Ntshakala, the consumer forum is asking the court for an urgent order to stop ongoing construction works at Ezulwini and to restrain the Central Bank from making further payments to the contractors involved in the project.

ECOF is also seeking a review and setting aside of decisions that led to the appointment of Ingcebo Joint Venture as the main contractor.

The applicant contends that the awarding of the contract for the construction of the CBE Complex, valued at approximately E2.78 billion, was marred by serious procedural and legal breaches.

Among the central claims is that statutory procurement frameworks, including the Public Procurement Act of 2011 and the Construction Industry Council Act of 2013, were not properly followed during the tender adjudication process.

ECOF further alleges that external consultants were improperly engaged to adjudicate the tender, which it argues undermined legally established evaluation structures.

These are allegations contained in an affidavit, whose veracity is still to be tested in court and the respondents are yet to file their answering papers.

According to ECOF, the Central Bank brought in a foreign consultancy firm, Abako International Partners, said to be linked to Ethiopia and Sweden, to assist in evaluating bids.

ECOF argues that this move amounted to an unlawful delegation of statutory powers reserved for established procurement evaluation committees.

The applicant further claims that this process compromised transparency and contravened national procurement legislation. At the centre of the dispute is the Ingcebo Joint Venture, comprising Stefanutti Stocks Construction Eswatini (Pty) Ltd and Stefanutti Stocks Eswatini (Pty) Ltd.

ECOF avers that the structure and shareholding arrangements of the joint venture raise concerns about compliance with local ownership requirements and may amount to what it describes as ‘fronting arrangements’, a claim that has not been tested in court.

The applicant further submits that the registration and classification of some participating firms may not meet the legal threshold for recognition as locally compliant construction entities under Eswatini law.

The application also challenges public statements issued by the Central Bank and CIC, which sought to clarify the legality of the procurement process and defend the participation of foreign-linked companies in the project.

ECOF argues that the statements misrepresent the legal position and fail to address key concerns relating to eligibility criteria under procurement law, particularly provisions governing local participation and ownership thresholds.

ECOF maintains that its application is driven by public interest considerations, arguing that the alleged irregularities could result in the externalisation of public funds and limit economic opportunities for local contractors.

The consumer forum further contends that the procurement process, if left unchallenged, could set a precedent that undermines statutory safeguards intended to promote local enterprise development and accountability in public spending.

At the time of filing, the respondents, including the Central Bank, CIC, ESPPRA and the contracted joint venture parties, had not yet publicly responded to the allegations contained in the founding affidavit.

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An artist impression of the Central Bank of Eswatini Complex, which is currently under construction in Ezulwini. (Courtesy pic)