MBABANE – Government has dismissed claims that it does not contribute to the Eswatini National Provident Fund (ENPF), describing the assertion as factually incorrect and misleading.
The Ministry of Labour and Social Security issued a statement yesterday responding to recent remarks by Business Eswatini (BE), which had claimed that government did not contribute a single Lilangeni to the fund.
In its statement, the ministry said government annually remitted more than E20 million to the ENPF on behalf of eligible employees engaged on fixed-term contracts and other temporary assignments who were not members of the Public Service Pension Fund (PSPF).
“These include employees engaged under fixed-term contracts, personnel recruited for national statistical surveys, population censuses, and various short-term government programmes,” the ministry stated.
The ministry said it was, therefore, inaccurate to suggest that government made no contributions to the fund.
The clarification follows a resolution adopted by the Business Eswatini Board during its final statutory meeting of the 2025/26 financial year.
The organisation had described the ENPF as exclusively a private sector fund funded entirely by private sector employers and workers.
“The ENPF is exclusively a private sector fund. It is funded entirely by private sector companies and their employees. Government does not contribute a single Lilangeni to ENPF,” BE said in its statement.
Business Eswatini raised concerns about what it termed a prolonged governance and operational stalemate at the fund, warning that continued instability could threaten the interests of employers and workers whose contributions sustain the institution.
The ministry, however, argued that the discussion around ENPF could not be separated from government's role in establishing and overseeing the fund.
It pointed out that ENPF was a Category A public enterprise established under the laws of Eswatini and governed through the Public Enterprises (Control and Monitoring) Act of 1989.
According to the ministry, the fund's chief executive officer, chief financial officer and governing board are appointed by Cabinet, underscoring its status as a public institution rather than a private entity.
“The ENPF is therefore not a private institution, but a public entity established, regulated and overseen by government,” the ministry said.
The ministry further noted that government played a central role in the creation and capitalisation of the fund, tracing its origins to Lidlelantfongeni, a national initiative established to promote social security, savings and income protection for workers.
It said government continued to provide policy, legislative and institutional support to ensure the long-term sustainability of the fund and to safeguard contributors' interests.
The ministry added that any failure by the ENPF to meet its obligations would inevitably require government intervention to protect contributors and maintain confidence in the country's social security system.
While acknowledging the importance of public debate on matters affecting workers and employers, the ministry urged social partners to verify information before making public statements.
It warned that unsupported claims could create unnecessary alarm among contributors and beneficiaries, undermine confidence in national institutions and strain relations among stakeholders.
“Public pronouncements that are not supported by facts have the potential to create unnecessary alarm among contributors and beneficiaries,” the ministry said.
The ministry reiterated government's commitment to constructive social dialogue and collaboration with employers, workers and other stakeholders in advancing the country's socio-economic development.
The exchange comes amid growing concern over governance issues at the ENPF, with Business Eswatini indicating that it intends to escalate the matter to higher forums if the current impasse remains unresolved.
Minister for Labour and Social Security Phila Buthelezi. (Courtesy pic)