EDITORS FORUM QUESTIONS & ANSWERS BY HIS EXCELLENCY THE PRIME MINISTER DR BARNABAS S. DLAMINI, JULY 2016

Question 1

In mid-June – the international intelligence communities issued an alert warning of an imminent terrorist attack in neighbouring South Africa. In light of growing jihadist religious extremism, what is the minister of police’s assessment of the threat in our domestic environment given the significant presence of a religion that has entrenched jihadist terrorism in all societies they have established?

Terrorism knows no boundaries nor region. As a country we are always vigilant in ensuring the safety and security of our people from any potential threat of terrorism and maintaining national peace which is so cherished by the Swazi people. Our security forces are effectively capacitated to deal with any threats in collaboration with the region and international community. At regional level SADC has already adopted a strategy to counter terrorism.

1.2 Can His Excellency assure the nation it has the capacity to manage national security in the context of self-contained population groups that show no interest in national economic and social values or in integrating with Swazi society?

As alluded to above, our security forces have the capacity to manage security in all sectors of the Swazi Society.

1.3 Do the police have mechanisms for monitoring that religious groups do not host terrorist incubators, propagate religious extremism or conduct economic activities in support of jihad?

There is a mechanism in place to monitor all possible instigators of terrorism regardless of affiliation, and all potential threats to national safety and security. Reports are produced on a daily basis.

1.4 Last week Mbabane Principal Magistrate Phathaphatha Mdluli ordered the police to investigate a shop called Chumana for black marketing. The Magistrate seemed surprised that the police were not able to create the link between illegal foreign exchange dealing with the serious crime of economic sabotage, money laundering and potential financing of jihad. Can His Excellency update us on the progress with investigation?

The matter is being investigated. The investigation has been extended to cover more places and outlets that may be engaged in illegal foreign exchange trading otherwise known as the black market. This is in line with the Exchange Control Order of 1974 which prohibits any other person other than an authorised dealer to sell or lend any foreign currency.

Question 2

The nation will be hosting the SADC summit for the first time since the organization was created in 1992. Can His Excellency address us on the state of national preparedness to host this major event effectively, efficiently and brings dignity to national stature?

2.1 The event is just about a month away. Are there any concerns that key infrastructure and processes critical to the quality and dignity of the event are in place in readiness.

Preparations to host the SADC Heads of State Summit are ongoing and running smoothly. All relevant processes including the installation of the required equipment and infrastructure for the Summit are on track.

By the end of this month testing, practicing and rehearsals by all the relevant stakeholders and performers will commence. Guidelines to assist SADC Member States delegations to prepare themselves to come to Swaziland in August, 2016 are already circulating in all SADC Member states.

Question 3

The Nation has been expecting the re-launch of the national carrier – Swazi Airways that was promised in February. The delays, by as much as 6 months seem odd and erode public and market confidence. Can His Excellency enlighten us as to the cause of the delays?

The process of applying for an Air Operator’s Certificate (AOC) is ongoing. Admittedly, it has taken longer than anticipated when the announcement was made in February. The exercise involves about twenty manuals and other technical documents which have to be scrutinized thoroughly by SWACAA’s technical personnel and approved. Swazi Airways personnel have been making the necessary interventions to satisfy SWACAA’s requirements.

In simple terms an AOC is the approval granted by a Civil Aviation Authority like SWACAA to an aircraft operator to allow it to use aircraft for commercial purposes. The AOC is recognized by all International Civil Aviation Organisation (ICAO) Member States which will not permit any airline to enter their territories without one.

Question 4

The issue of His Excellency pending divorce cannot be a matter of public gossip, we would like to know how the Prime Minister is coping with the pending divorce proceedings as Head of Government and a family man?

It surely goes without saying that this is not an easy time for either party. Whether as Head of Government or as a family man, I would in both cases say that the matter being in court, I would hope and indeed expect that there will be a fair and just outcome.

Question 5

At the height of the country's financial challenges in 2011/12 His Majesty’s Government put together a consolidated programme known then as Financial Adjustment Roadmap (FAR). How serious is the current financial situation and what has government done to ensure that the country recovers quickly amid dwindling SACU revenues?

Government has responded to the current fiscal shock by continuing to strengthen the revenue administration. This has been done through approval of certain bills that seek to make the Revenue Authority more efficient. These include the Customs and Excise Amendment bill and VAT Amendment bills that are pending before Parliament. Other bills that will be submitted to Parliament before the end of the year include; Tax Compliance Certificate, SRA amendment – to incorporate the transfer of revenue offices to SRA and the Alcohol and Tobacco Levy bills, just to name a few.

We are also utilizing our low indebtedness as a country to smoothen the shortfall, which we believe is a temporary shock. For instance Government will be signing loan agreements with the African Development Bank (E855 million towards LUSIP project), the World Bank (US $26 million towards Private Sector Competitiveness). We are also working with local pension funds in financing some of our programmes such as the Institutional Housing project and the construction of Mananga Border Post. Beginning April this year Government has been issuing a minimum of E250 million per quarter in domestic bonds and treasury bills.

Question 6

Further, what is Government's position regarding the SACU revenues in relation to what Pretoria is saying that the money should be directed to developmental programmes than support internal national budgets?

6.1 In the 2011 Fiscal Crisis, Government was unable to mobilize international funding support because it failed to meet IMF eligibility criteria. Even South Africa declined to support Swaziland unless it met conditions, including governance reforms. Will government be prepared to institute the reforms demanded by IMF this time.

Our understanding is that proposed changes in the formula would not make any of the SACU Member States worse-off as per the directive from the SACU Summit. Individual country circumstances would be taken into account as much as possible. Of particular note is that Swaziland has been spending far in excess of the 15% development component (within the annual SACU share for the country) towards her capital programme. In 2016/17 for instance the country’s capital programme (of E5.39 billion) is a slightly above our SACU share (of E5.25 billion).

Question 7

One member of cabinet has been indisposed for the past six months and reports suggests that his position is not promising to be suitable to resume office any time soon. Is it not time for a cabinet reshuffle?

His Majesty’s Government and Cabinet in particular are deeply sympathetic to the Minister and the medical challenge that he has been facing. A Ministerial position is very important to the proper working of a Government, so His Majesty has been briefed on the matter. The Minister will be receiving further treatment and in the meantime, medical advice is being sought to discuss the prognosis and, accordingly the best way forward.

Question 8

Swaziland Water Services Corporation (SWSC) charges customers connected to its grid, at least at household level, E101.35 per month for what it terms a Basic Charge (53.15) and a Standard Charge (48.20) which is separate from the consumption charges. What is this money for?

The E48.20 Standard Rate is for the first 0-10m3 or kilolitres. It must be noted that SWSC uses an increasing block tariff (charge per unit increases with consumption) as opposed to a flat rate.The increasing block tariff accommodates the poor and benefits minimum water consumers. It also encourages water conservation in the upper band since higher charges apply with more consumption. Water is a scarce resource and needs to be highly conserved. The E53.15 is meant to cover capacity costs. These include asset replacement and maintenance e.g. pipe replacement and infrastructure rehabilitation/upgrade.

8.1 Given that Swaziland Water Services Corporation is a parastatal which can only exercise public power in terms of the law, which law and section does it apply to enforce such charges?

To set Tariffs, SWSC employs Section 31 and 32 of the Swaziland Water Services Corporation Act 12 of 1992. Summarily, these sections call for the Corporation to employ commercial business principles in order to remain sustainable. The prices to be charged for services are to be fixed so as to enable the Corporation to comply with section 31 (principles of financial operations) and such prices shall be in accordance with tariffs which are agreed between the Corporation and the consumer through parliamentary processes; and may include rent and other charges in respect of water meters and fittings provided by the Corporation within the consumer’s premises. It is a requirement of the Act that such tariffs shall be published in a gazette to secure the publicity element.

8.2 In the financial year that began in April 2016, Swaziland Water Services Corporation increased the total Basic Charge and Standard Charge from E94.60 to E101.35, an increase of 7.135%. What formula and what factors were taken into consideration when this increase was arrived at and effected? Who did the calculations?

The Corporation employs international best practice for setting tariffs, which requires water utilities to set socially and economically affordable tariffs that cater for financial sustainability and future expansion, as does all water utilities world over. The Corporation conducts independent studies to ascertain affordability and also factor in inflation, costs of operation which include production, electricity costs, and expansion costs in accordance with the Water Services Act.

8.3 We understand the Board of Directors of Swaziland Water Services Corporation submits proposed tariff increases for a given year to the Minister for Natural Resources and Energy who, in turn, submits the proposals to Parliament for approval. However, the Water Act 2003 states that water tariffs should be regulated by the National Water Authority. Why does the minister bypass this statutory body?

The Water Act, 2003 has no provision which states that water tariffs should be regulated by the National Water Authority (NWA). Instead section 8(c) of the Act provides as one of the functions of the NWA the function to advise the Minister on the promulgation of regulations respecting the setting of fees and charges for covering operation, cost and maintenance, of amongst other things, charges for water use. Therefore, the NWA is relevant only in so far as advice on promulgation of regulations is concerned and not as a regulator.

On the other hand the setting of tariffs is regulated by the Swaziland Water Services Corporation Act, 1992. The specific provision in the Act is section 32 which stipulate that when determining tariffs SWSC is to take into consideration principles of financial operations in terms of section 31 of the same Act. Therefore the Minister is not obliged in terms of the law to pass through the National Water Authority prior to tabling the proposed water tariffs to Parliament.

Question 9

Can His Excellency update us on the progress of the SPTC unbundling process. Is the programme still on target for July 31?

The unbundling process of SPTC is currently in progress and in compliance with pertinent provisions of the Swaziland Communications Act and the Swaziland Electronic Act of 2013. The Corporation has complied fully with the transitional arrangements of the Swaziland Communications Commission which established the independent industry regulator. This involved the handover of license fees and all regulatory records.

As part of preparation for the unbundling exercise, SPTC has developed a long term strategic plan to ensure business continuity, business growth, profitability and sustainability of the entity. This plan was approved by Government in 2015. Key in this plan is compliance to the new legislation and meeting certain deadlines. This legislation enforces market liberalization and full competition. To enable a level market field SPTC will separate into three separate entities namely;

SwaziPost, SwaziTelecom and Infrastructure companies.

9.1 What is the rollout plan – specifically relating to the development process of the new telephony company. Does it plan to re-introduce the mobile service? If so, what is the level of technological advancements it plans to roll out.

The unbundling rollout plan envisages a number of key considerations namely:

1. Management of the transitional arrangements properly
2. Compliance with the Swaziland Communications Commissions Act of 2013
3. Accounting separation of the separate entities of SPTC
4. Functional separation of the three entities
5. Establishment of the three bills namely; Postal bill, retail telecom bill and infrastructure bill. The Ministry of Information, Technology and Communication has engaged a Commonwealth consultant to assist with the enactment of the bills before the end of the current calendar year. This work is in progress.

Once finalized, the above process will enable a good foundation for public, private partnerships in the ICT and telecoms industry. This will assist Government to attract FDI in the country resulting in job creation and bridging the digital divide.

9.2 As a Government entity providing a sensitive service of communication in a global knowledge economy, is government satisfied with SPTC efficiency. Is there a mechanism that Government uses to assess the efficiency and effectiveness of SPTC service delivery.

SPTC is a wholly owned government utility and essential service provider providing postal and telecommunications services in the country. The organization also provides universal service in the most rural and remote areas of the country. In accordance to the Act establishing SPTC, the Corporation has a board and is monitored by the PEU for performance.

9.3 Is His Excellency aware of the levels of perceptions of public satisfaction with SPTC capacity and ability to efficiently and effectively deliver key communication services such as email. For example, it appears even government officials rely on external free email services for communication.

The key success factors in the highly dynamic telecoms industry include adequate capex funding for capital projects and the use of modern technology to provide services anywhere and anytime. The key is convenience and affordable access for broadband. To enable the country to move faster to the first world, the ICT Ministry has recently launched a broadband strategy and policy. This policy is a key enabler to attract public private partnerships in order to bring the necessary equity partners in the country.

Question 10

Cancer continues to be a cause for concern in the country and over 60  to 70 percent of  patients sent to South Africa to receive treatment through the Phalala Fund are cancer patients, breast cancer, cervical, etc. Government's efforts of setting up a chemotherapy unit at the Mbabane Government hospital in October last year are appreciated. Your Excellency with resources available is there a possibility of expanding the treatment of the various types of cancer by setting up a radiotherapy unit in the country to compliment chemotherapy which at the moment is accessed by at least five patients. Radiation therapy uses high energy rays to kill cancer cells whereas chemotherapy uses very strong drugs.

His Majesty’s Government has continued to prioritize health as one of the important sectors in the Kingdom. A healthy nation is a productive nation.

In this regard, several initiatives have been taking place to respond to the cancer burden that is increasing in the country. This is confirmed by the information we receive from the people who are being referred for cancer treatment in South Africa. Government is concerned about the inconvenience caused by the separation of patients from their loved ones when they go for long periods of cancer treatment in the form of radiotheraphy and chemotherapy.

The Ministry of Health has started working on ensuring that cancer treatment services are available in the country. This is however not a simple task and also requires commitment and resources.

While we talk about treatment, I should say that the Ministry of Health is also working hard to screen women and men for reproductive health cancers such as cancer of the breast, cervix and prostate which affect many people in the country. Public sensitization is ongoing and screening services for women have been decentralized to the rural areas.

Full time Pathologists at Mbabane Government Hospital are working hard to ensure prompt diagnosis of cancers so that treatment can be started either in the country or externally. A Chemotherapy Unit has been completed at the Mbabane Government Hospital for the treatment of firstly breast cancer, then cervix and prostate cancers, and other cancers at a later date.

Government is cognizant of the need to further improve cancer treatment services by establishing radiotherapy services. In this regard, we are looking at establishing public private partnerships as this requires significant investment in infrastructure and in acquiring the skilled human resources that is needed for cancer treatment. This will become a reality once the New National Referral Hospital has been constructed and established. This will drastically reduce the amount of money the country spends to pay health providers in neighbouring countries for the services related to cancer diagnosis and treatment.

Question 11

As Minister responsible for Parliament Affairs, can His Excellency address us on the problems in Parliament. Two times this year, Members of Parliament have sought the intervention of His Majesty in an attempt to correct the conduct of the Speaker of the House of Parliament. In both instances His Excellency has not addressed the concerns but ordered Members of Parliament to go back to work as if nothing is wrong. Is there a process for dealing with the conduct that the Speaker is accused of.

11.1 The manner of resolving complaints against the Speaker leave a perception that Government will protect the Speaker whatever wrong he commits. Is there any plan to address the complaints against the Speaker?

11.2 By allowing the Speaker to carry on the way he is accused of suggests Government wants to send the message that “It is OK” for public servants to conduct public office in the manner of the Speaker.

As I have said before, I respect the separation of powers set out by our Constitution. My responsibility is for the workings of Parliament outside the two chambers. What goes on inside the Senate and the House of Assembly are outside my jurisdiction. I am, nevertheless, as a member of Parliament entitled to express my opinion in that capacity as, indeed, I did.

When I am bringing a message from His Majesty, King Mswati III, I do so as a carrier of a message in precisely the same manner as any other person commanded by the Head of State, to convey information or an instruction. What is clearly important is that Parliament allows itself to focus efficiently and effectively on its legislative, regulatory and other work. I believe the average Swazi would want to be assured that issues of concern, within the respective chambers of Parliament, are examined in a professional and workmanlike manner, concurrently with the processing of day to day Parliament business.

Question 12

Election Act 2013: The election Act of 2013 section (88) part 1-5 requires that proceedings against elections candidates charged with criminal offences be expedited.

1. i)It does not appear that government is complying with this requirement given that there are number of legislators in both houses of Parliament with court cases that have been pending now for more than 5 years. Can His Excellency comment?

1. ii)The offices of both the ACC and SRA complain of delays in the finalization of their cases. What is the progress in plans to grant them prosecution powers?

Both of these matters are currently under discussion with the Chief Justice.

Question 13

Swaziland Electricity Company reported stopping an illegal transaction allegedly to steal E1.5 million. Some members of top management are implicated. Can His Excellency update us on progress in investigating this matter?

Internal investigations are still ongoing in respect to this matter according to the policies and procedures of the company as it is a requirement that whenever such occurrences happen there must be an investigation. Upon conclusion of the investigation, a report will be presented and if there are any recommendations they will executed without any delay.

13.1 Can His Excellency update us on plans by SEC to build a new thermal power station at Lubhuku. Given the environmental concerns with pollution, what assurances has government secured about potential environmental damage from emissions.

Government working together with SEC and all other relevant stakeholders is at a high level of preparations with a possible developer for the thermal power station. This is a necessary project for the country as it will bring about self-reliance on electrical energy, which is a prime driver of the economy.

As far as pollution and other environmental concerns, there are modern methods of mitigating emissions. Swaziland will ensure that the power station complies with the environmental requirements when it comes to emissions and also the disposure of any by-products from the power station e.g. ash. Thermal Power Stations are being built in many parts of the world, including close to us in Southern Africa (SADC). As long as the rules on emissions are followed there will be no problem. Swaziland is endowed with a natural resource, coal and as a country we ought to benefit from this but, of course, following the laid down procedures.

Question 14

What is the reaction of the Government of Swaziland towards Brexit?

Government through the Ministry of Commerce, Trade and Industry will assess the implication of Brexit particularly on how it impacts our trade agreements and how negative implications could be mitigated. For now we know that this has come with some volatility in currencies which affects our debt service. Fortunately our debt is almost equally split between local and hard currencies which reduces the exchange rate risk.

Question 15

What is being done to make sure that the recommendation of the PAC are followed and implemented. The trend now is that most business people who have been reprimanded by the office of the PAC are the very same ones who continue to get business in government.

PAC has all the tools to enforce their recommendations. I also trust that the ongoing improvements in procurement through the Swaziland Public Procurement Agency (SPPRA) would go a long way in assisting Government Ministries and Departments on the evaluation of tenders before they are awarded. Existing procurement tools, which include regulations and forms need to be updated and aligned with the 2011 Procurement Act in order to allow for a comprehensive evaluation of tender bids before they are awarded.

Question 16

At the Kigali African Union summit this month, Heads of State will launch the e-Passport allowing any A.U. passport holder to enter any AU country without a visa with effect from 2018. In the context of the issues underlying Brexit, is Swaziland ready to implement the e-Passport.

His Majesty’s Government fully embraces this initiative. It goes without saying that such an initiative calls upon Government to upgrade infrastructure to a level befitting this project and that requires a strategic plan and mobilisation of resources.

It is worth noting that during the launch in Kigali, the first beneficiaries will include: AU Heads of State and Government, Ministers of Foreign Affairs and the Permanent Representatives of AU Member States based at the AU Headquarters in Addis Ababa, Ethiopia before being rolled out to the respective AU Member States populace. e-passports generally have the benefit of bio-features which will ensure that there are no imposters who travel using other people’s passports thus reducing chances of fraudulent passport circulation.

The launch of e-Passport in Kigali is in line with the Government’s technological development strategy where key stakeholders on the movement of people are actively involved in the reform of the visa issuance process. These stakeholders include the Ministry of Home Affairs, Private & Cabinet Office, Royal Swaziland Police Service, Ministry of ICT and Ministry of Tourism and Environmental Affairs.

Currently a project to roll-out e-visa issuance system is at an advanced stage. It is aimed at ensuring that visa applications are made even at areas where the country has no Diplomatic missions. It is from the development of the e-visa issuance project that the implementation of the e-Passport shall be considered and would be in line with the visa waiver program which is currently on its infantry stage.

Question 17

Government has charged the head of the former Salgaocar Swaziland Shanmuga Rathenum with a range of crimes of fraud and has indicated that prosecution of the cases will be conducted in his home country. Has Singapore agreed to host the prosecution and when is the prosecution scheduled?

These are early days. The matter is in court, the due processes are being followed and it would not be appropriate for me to comment other than to say that the Government position has not changed.