The Ministry of Housing and Urban Development in Eswatini has defended its decision to secure an approximately E1 million loan from the Mbabane Municipal Council to fund the Eswatini Urban Forum. Principal Secretary Dr. Simon Zwane stated that the ministry had budgeted for the event but required immediate funds to cover logistical costs. The forum, set to take place at the Palazzo International Convention Centre in Ezulwini, aims to bring together government leaders, urban planners, and stakeholders to discuss housing and urban development.

According to Dr. Zwane, an inter-governmental relationship between the ministry and local government permits such informal transactions, and there is no law prohibiting them. The loan was requested in writing as a short-term measure to meet immediate logistical needs. The ministry has committed to repaying the municipality, assuring residents that they will not suffer financial losses. The event, hosted in collaboration with the Eswatini Housing Board and local authorities, focuses on creating smart, resilient, and inclusive cities.

This year's edition of the forum, themed 'Shaping Smart, Resilient and Inclusive Cities,' will discuss urban development and the creation of sustainable cities. Dr. Zwane dismissed allegations that the municipality's CEO, Gciniwe Fakudze, and Housing Minister Appolo Maphalala plotted to unlawfully divert ratepayers' money towards the event. He described these allegations as false and misleading, emphasizing that the transaction was a legitimate administrative arrangement.

The ministry had formally requested the loan from the Mbabane Municipal Council, and the transaction was supported by official administrative correspondence. Dr. Zwane rejected claims that the minister and the municipality's CEO had a telephone conversation agreeing to the transaction before formalizing it in writing. Instead, he stated that the ministry followed the proper administrative process by submitting an official written request.

The Eswatini Urban Forum brings together stakeholders involved in urban development and local governance to address immediate logistical needs associated with hosting the event. Dr. Zwane assured Mbabane residents that the municipality's money would be returned as agreed, emphasizing that the transaction should not be portrayed as a criminal act without evidence. The ministry remains committed to transparency, accountability, and the prudent use of public funds.

The ministry condemned what it described as sensationalist and defamatory reporting on the transaction, stating that it misrepresented an administrative arrangement as a scheme to steal public money. Despite controversy surrounding the municipal loan, the ministry stated that the event would proceed as planned. Dr. Zwane reiterated that the ministry stands by its account of the transaction and assures residents that the funds will be repaid.

The Eswatini Urban Forum is expected to focus on issues relating to urban development, with stakeholders discussing the future of housing and urban development in the country. The ministry's decision to secure a loan from the Mbabane Municipal Council has sparked debate among residents, with some expressing concerns about the use of ratepayers' money. However, the ministry maintains that the transaction was necessary to ensure the event's success.

Key points

  • The Eswatini Housing Ministry has defended its decision to secure an E1 million loan from the Mbabane Municipal Council to fund the Eswatini Urban Forum.
  • The ministry has committed to repaying the municipality, assuring residents that they will not suffer financial losses.
  • The Eswatini Urban Forum aims to bring together stakeholders to discuss housing and urban development, focusing on creating smart, resilient, and inclusive cities.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.