Members of Parliament in Eswatini have passed a loan bill to support the financially distressed Eswatini Posts and Telecommunications Corporation (EPTC). The bill, which guarantees a US$26 million loan, aims to assist EPTC in addressing its financial challenges, including a significant pension deficit. EPTC's financial struggles have persisted for years, with its deficit reaching a critical point. The corporation's pension scheme is also facing a serious deficit, with around 500 beneficiaries and only about 144 contributors.
The loan bill was debated in the House of Assembly, with MPs raising concerns about EPTC's financial position, pension obligations, and the future of its employees. Chairperson of the Finance Committee, Marwick Khumalo, moved the bill, citing the need for urgent financial assistance. Khumalo noted that EPTC's shareholding in MTN had generated funds to help pay pensioners, but the corporation's financial obligations had persisted. He emphasized that the deficit had dragged on for too long and that the pension scheme was facing a significant shortfall.
During the debate, MPs asked the new EPTC Managing Director, Thulani Fakudze, about the possibility of retrenchments as part of the corporation's turnaround strategy. Fakudze assured them that retrenchments were not part of the plans and that EPTC would continue with its current employees. The assurance was welcomed by MPs, who emphasized the importance of job security. Ngwempisi MP Bishop Bhekibandla supported the loan, describing EPTC's situation as sad, but sought clarity on the causes of the corporation's decline and the plans to address its challenges.
Other MPs, including Manzini North MP Mashayinkonjane, raised concerns about employees working on contracts at EPTC. Mashayinkonjane asked whether these employees would be moved to permanent positions once EPTC received the loan. He also questioned whether the government's guarantee of the loan would translate into cheaper services for emaSwati, particularly in terms of data and calls. Zombodze Emuva MP Ntando Mkhonta noted that the EPTC loan debate should be considered within the broader context of government borrowing.
Minister for Sports, Culture and Youth Affairs Bongani Nzima warned against individuals responsible for EPTC's collapse in the past returning to influence the corporation. Nzima emphasized that government did not want to see a repeat of past mistakes. Minister for Public Service Mabulala Maseko raised concerns about workers who had been threatened with possible job losses, despite having worked for EPTC for decades. Maseko sought assurances that these employees would not be retrenched.
Deputy Speaker Madala Mhlanga emphasized that Parliament had considered the human element when dealing with the loan bill. He noted that EPTC employees had families and livelihoods that depended on their jobs. Mhlanga also highlighted the importance of leadership and Parliament's oversight role in ensuring that the responsible minister was not left to deal with the matter alone.
The passing of the loan bill has been welcomed by EPTC employees, who had been facing uncertainty about their job security. The corporation's financial challenges are expected to be addressed through the loan, which will also help to stabilize its operations. Minister for Information, Communication and Technology Savannah Maziya thanked the House, the mover, and seconder of the bill for their support.
Key points
- - Eswatini MPs pass loan bill to support financially distressed EPTC - EPTC management assures no retrenchments as part of turnaround strategy - Loan aims to address EPTC's financial challenges, including significant pension deficit
