Business

MBABANE – Consumers have raised concerns over alleged irregularities in the awarding of a tender for the construction of the Central Bank of Eswatini (CBE) Complex.

In terms of the Public Procurement Act of 2011, individuals and entities are required to lodge any objections within 10 days.

Represented by the Eswatini Consumers Forum (ECOF), a government-recognised entity, the consumers claim that the tender was granted to a foreign joint venture (JV) in violation of the Construction Industry Council (CIC) Act and the Constitution of the Kingdom of Eswatini.

The matter concerns Phase 1 of the CBE Complex project in Ezulwini, which was awarded to Ingcebo Joint Venture, comprising Stefanutti Stocks (Pty) Ltd and Stefanutti Stocks Eswatini. The first phase of the project is estimated to cost approximately E2.8 billion.

Copies of the forum’s letter were sent to the Swazi Empowerment Council, the Principal Secretary in the Ministry of Public Works and Transport, the Eswatini Contractors Association and the Eswatini Association of Architects, Engineers and Surveyors.

In the letter addressed to Maqhawe Mnisi, Chief Executive Officer of the CIC, Mandla Tshakala, Chairperson of the forum, alleged that the awarding of the tender to Ingcebo JV breached several legal provisions.

“This letter seeks to highlight a series of serious irregularities and statutory violations that have tainted the awarding of this contract by the CBE,” Tshakala stated on behalf of the forum.

The forum also engaged a team of legal practitioners to examine the tender’s compliance with relevant legislation, including the Central Bank Order and the Public Procurement Act.

ECOF further argued that awarding the contract to Ingcebo JV contravened the Citizens Economic Empowerment Act of 2021, undermining its intent to promote local participation in major national projects.

The forum cited Section 40(1) of the CIC Act, which stipulates: “A person shall not award a contract for construction works to a foreign company or foreign firm without the approval of the council.”

Subsection 2 reads: “Where an award of a contract is referred to the council for approval and the council determines that the construction work to be awarded can be taken by a Swati company or Swati firm, the council shall not endorse its approval and the person shall not award the contract to the foreign company or foreign firm.”

Consumers said the CBE was clearly being aided and abated by the council to contravene Section 40(1) of the CIC Act.

“The eventual winner, Ingcebo Joint Venture, was adjudged to be the preferred or advantageous bidder to be appointed by the CBE. This appointment was made with the approval of the council. This was based on tender adjudication conducted contrary to the Procurement Act,” reads the letter.

Section 42 (1) of the CIC Act states that a ‘person shall not award a contract for any construction works to a foreign company or foreign firm unless the foreign company or foreign firm undertakes the construction works in partnership with or jointly with a Swati company or Swati firm.’

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An artistic impression of the Central Bank of Eswatini Complex in Ezulwini. Following a procurement process, Dr Phil Mnisi, the Governor of the Central Bank of Eswatini, says the bidding process was transparent and competitive. (Courtesy pics)

Mandla Tshakala, Chairperson of the Eswatini Consumers Forum, alleged that the awarding of the tender to Ingcebo JV breached several legal provisions.