RT. HON. PRIME MINISTER, DR B.S.S.DLAMINI

 

ANSWERS TO QUESTIONS FOR THE EDITORS FORUM

 

THURSDAY 31 JULY 2014

 

 

1. 1.Question

 

Most countries in the region are working hard to make sure that they are power sufficient. Countries like Mozambique, Lesotho, South Africa and many more are on electricity supply expansion drive but Swaziland seems to be doing nothing tangible in this regard. SEC applied for a prospecting licence from the Minerals and Land Management Board which could give way to carry the feasibility study for the thermal power station. Four years have elapsed and nothing is being done in this regard, what is government doing to make sure that this project eventually sees the light of Day? And why is the issue of Electricity not given the utmost priority it deserves?

 

Answer

 

The Swaziland Electricity Company (SEC) did apply for a prospecting licence to the Minerals Management Board and not the Land Management Board. However, there were other pertinent actions that needed to be addressed before granting the prospecting licence. The Swaziland Government is taking the issue of electricity security as high priority and is working with SEC to ensure that the project is implemented by 2018 as clearly stipulated in Vision 2022 and the Ministry’s Strategic Plan.

 

1.1      Question

 

Is government aware that for the proposed thermal power station to operate properly,  another dam needs to be constructed  mainly because the earmarked LUSIP dam would not have the capacity to be used for both irrigation and for the thermal power station?

 

Answer

 

Government is aware that a thermal power station needs water to operate. However, a study will be conducted to determine the amount of water to operate the plant. A decision will then be made whether another dam is required or LUSIP Dam is sufficient. IN any event in this year’s Budget there are the funds to carry out the pre-feasibility study on the Ethemba Dam which, once in place, would give us enough water for the thermal power station.

1. 2.Question

 

Government is deeply involved in business, compared to other countries in the SADC region. This is happening despite a call from the private sector to reduce its involvement through the Public Private partnerships PPPs. What is being done in this regard to make sure that most of the public companies are privatised to generate more revenue?

 

Answer

 

Government continues to promote and assist the private sector as the engine of growth in our economy. There are, however, situations where the private sector is not available to invest in much-needed facilities. That is where Government itself has invested, examples of which are the factory shells, and the new hotel and convention centre. At the same time we do like to partner with the private sector where possible. Government issued the Public Private Partnership (PPP) Policy in March 2013 and already have has a PPP operational in the health sector. Some Public Enterprises have already engaged to PPPs in a bid to privatize some of their non-core activities

1. 3.Question

 

During the dinner hosted by Manzini Business Community in the Kings honour, His Majesty talked about improving the country’s ranking in the ease of doing business ranking of the World Bank. This can only be achieved through the implementation of the Investor Road Map; however there are no reports on implementation progress. Does this team still exist? Was there any money allocated to implement the investor roadmap?

 

Answer

 

His Majesty’s Government recognizes the importance of implementing the Investor Roadmap and hence a structure was put in place after the re-launch by His Majesty in 2012 to spearhead the implementation process. However, implementation has been slow compared to expected outputs.. The Government has decided to institutionalize the Investor Roadmap by creating a dedicated Unit which will focus on the IRM. The head of the Unit, Albert Chibi has been recruited and commenced his work in the Unit.

It is therefore expected that the authority granted to the Unit will be able to overcome the bureaucratic inertia and move the reform process forward. All ministries, parastatal and private sector organisations will be directed to collaborate fully with the IRM Unit and their performance will be reported by the Unit regularly and directly to Cabinet. The target of this Unit will be substantial improvement in ranking within the World Bank Ease of Doing Business Index from the present ranking of 123 to 60 by 2018.

 

1. 4.Question

 

Government is good at enacting policies and strategies but the pace at which they are implemented lives a lot to be desired. One of the strategies is the Economic Development Strategy (EDS). What has become of this strategy and what are its outputs? In this regard, is government concerned about the pace at which strategies are implemented?

 

Answer

I am sure you are referring to the Economic Recovery Strategy because there is no Economic Development Strategy. The Economic Recovery Strategy (ERS) is being implemented through various initiatives including the Swaziland Development Index and Government Programme of Action 2013-2018. The targets in the Economic Prosperity segment reflect aspirations of the ERS, as well as targets in the other segments of the SDI. The review of the National Development Strategy takes into account recommendations of the ERS as anchor strategies in the various sub-sectors. Future growth projections are centred-around the up-scaled activity in the mining, agriculture, tourism, infrastructure development and human capital development as well as youth empowerment, development and training on entrepreneurship skills which are all target areas identified by the ERS as sectors of potential. The development of the Agriculture Investment Plan under the Comprehensive Agriculture Development Programme also takes leaf from the Economic Recovery Strategy.

 

ERS Outputs to-date

(i)                The ERS Task Team has identified sectors that have great potential for economic turnaround. These sectors are: agriculture, mining, tourism, infrastructure development, financial services sector and ICT, have been found to have higher multiplier effect in all four aspects (employment creation, value –addition, capital accumulation and income) are: agriculture, mining, tourism, financial services, manufacturing and infrastructure development that support capital accumulation (creation of wealth or amassing of objects of value). Tourism, manufacturing, and health are expected to benefit from positive externalities (spin-offs) from the implementation of infrastructure projects that tend to have a sustained effect even beyond project completion stage.

(ii)              Subsequently there has been strong advocacy for realizing the potential of the mining sector.

(iii)            Resuscitation of National Industrial Development Corporation of Swaziland (NIDCS)

(iv)            Fast tracking of the approval of the Shopping Hours and Trading License Bills;

(v)              Catalyzed the process to properly manage the disposal and management of industrial land;

(vi)      Identification of unutilised government farms that have potential for agricultural production;

(vii)    Extension of border operating hours to 24 hours –process ongoing

(viii)  Expedited the process of developing the Public-Private Partnership (PPP) policy

(ix)      Positioning of Swaziland Industrial Development Corporation (SIDC) to carry out its mandate as a development finance institution.

Government is indeed concerned about the pace of implementing strategies and that is why all Ministries have annual performance targets that are time bound and measurable. The SDI and Government Programme of Action have time bound targets and deliverables which should be met by all implementers in order for the country to realize its aspirations. The creation of a dedicated Unit to spearhead the implementation of the Investor Roadmap is also an indication that Government takes the timely implementation of strategies seriously.

 

1. 5.Question

 

It has been observed that the number of companies closing shop in the country are many compared to those establishing businesses. In the last two years, the country managed to attract only three fresh investments, with some existing companies engaging in expansions that provided a total of about 553 employment opportunities. However, a thorough analysis indicates that job losses in the same period surpassed job creation. About 1011 jobs were lost during the same period from 2012 up to date. This was due to the fact that some companies closed shop in the country and some effected redundancies. Is government cognisant of this fact and what is government doing to address this challenge?

 

Answer

 

Since the global financial crisis and the ensuing economic recession throughout most of the world, many countries experienced extensive business closures. Looking to the future, as we are, in the Programme of Action for the period 2013 – 2018, His Majesty’s Government has put “Economic Prosperity” as a priority focus area. This will be achieved through fostering industrial and commercial growth and job creation. It will also be achieved through increasing the competitiveness of the private sector. Although Foreign Direct Investments are of major importance to the economy, it should be mentioned that Government does not rely only on FDIs to create jobs; initiatives are being put in place to incentivise the existing domestic companies (Small, Medium and Large) to create more jobs.

Some activities to achieve these goals are already ongoing. For instance, a suitable fiscal incentive package is being investigated by the Ministry of Finance to ensure that existing companies are able to re-invest and create more jobs; SIPA is being supported to ensure that project are operationalized and her efforts to reach out to investors receive adequate support from government; the Handcraft Roadmap is currently on the drawing board; SEDCO is largely involved in addressing business skills shortages; an action plan to implement the Tourism Development Strategy is currently being drawn up; and the pursuit of the National Agricultural Diversification Strategy will be upscaled, as well as issues relating to the investment environment are being addressed through efforts to institutionalize the Investor Roadmap. These initiatives are targeted to create at least 6,000 new jobs each year.

 

1. 6.Question

 

When does government plan to distribute the maize in the warehouses to feed needy people? When he was asked, the DPM said this matter runs into deep waters. What does this mean?

 

Answer

 

The Office of the Deputy Prime Minister constantly distributes food commodities to victims of disasters as well as to vulnerable people. In the case of disaster victims, a response of food intervention is carried out immediately an incidence is reported. In the case of vulnerable households, such reports are channelled to the Department of Social Welfare, and as per their mandate, they then carry out a verification exercise and a list of eligible people is compiled and food distributions are made as per the requests advanced. Therefore, distributions to both the vulnerable as well as disaster victims are conducted continuously. However, it is worth noting that the vulnerable households are prioritized based on their level of vulnerability. This means that the resources available are often not enough to meet the demand. It is then on the basis of the above information that the Honourable DPM once indicated that the matter runs into deep waters meaning that the issues of food distributions are complex.

 

1. 7.Question

 

Given what’s happened to Bheki Makhubu and his protracted Contempt of Court case, can the Prime Minister still assure the media that Swaziland respects press freedom?

Answer

 

Freedom of the press is respected by Government. But that does not mean that the media can report all that it chooses to report. Where, for example, it fails to respect the right of the Judiciary to proceed uncriticised while a case is sub-judice the media will be brought to book. It should also take care to observe best practice in accordance with the principles espoused by its profession. If one examines all the press reports over the past years it will be observed that the media is allowed a great deal of latitude in its reporting. I think the words “honest, legal and fair” capture the ethos of what the press should strive for.

 

1. 8.Question

 

The Prime Minister has repeatedly stated that he respects criticism and difference of opinion. If the Prime Minister has been following the Bheki Makhubu case at the High Court, it is clear that he is the only one that accepts criticism and difference of opinion. Shouldn’t all members of the leadership in all other arms of government also accept criticism, difference of opinion and open scrutiny?

Answer

 

When you say that “I accept criticism” you should really qualify that by adding “where criticism is justified.” An individual has the right to criticize but where it is not justified I will object. On the other hand, while Government does not interfere with the individual’s right to criticize, there are certain situations where it is not legally permissible for the media to express criticism – such as criticism of an individual member of the Judiciary, and while the respective case is sub-judice.

1. 9.Question

 

The conduct of some ministers has been worrying; one minister publicly slammed the Americans, calling them bullies; another has been having a very cosy relationship with the judiciary. In fact, the Justice Minister has gone to the extent of launching a policy without Parliament’s approval. Did Cabinet approve the policy on the distribution of estates in line with the principle of collective responsibility?

Answer

 

The comment about the Americans being “bullies” was made by a Minister expressing a personal view – made off the cuff at a function. It was not a remark made on behalf of Government and, indeed, it is not a view shared by Government. We are on friendly terms with the United States and intend to keep it that way.   The Americans themselves are mature enough to deal with comments such as the one made by the Minister.

As one of the three arms of Government, the Executive arm must cooperate and collaborate with the other two arms - the legislature and the Judiciary - wherever necessary. That will never imply that “cosy relationships” or other undesirable links are encouraged or tolerated.

The policy statement by the Minister for Justice and Constitutional Affairs has been withdrawn following a Cabinet decision on the matter. Government Press Statement number 10 of 2014 elaborates on this matter.

Section 34(1) of the country’s Constitution provides that “A surviving spouse is entitled to a reasonable provision out of the estate of the other spouse whether the other spouse died having made a valid will or not and whether the spouses were married by civil or customary rites. Section 34 (2) provides that “Parliament shall, as soon as practicable after the commencement of this Constitution, enact legislation regulating the property rights of spouses including common-law husband and wife.”

Cabinet at its weekly meeting on Tuesday, 29^th July 2014 reviewed the policy/directive of the Minister of Justice and Constitutional Affairs on the distribution of deceased spouses estate and resolved that the policy/directive be withdrawn forthwith and the affected estates continue to be regulated by the current law pending the enactment by Parliament of suitable legislation as required by Section 34(2) of the Constitution.

1. 10.Question

 

Now that the country has been removed from the African Growth Opportunity Act (AGOA), everyone is wondering why Government failed to fulfill the AGOA requirements. Can His Excellency explain what the position is now.

Answer

The position on AGOA is that we will continue to work on the issues that relate to the removal of Swaziland’s eligibility to AGOA.   On the issue of the requisite amendments to the Industrial Relations Act that related to the registration of workers federations and the liability of unions for criminal damage caused during actions, it has to be said that the goalposts were moved while certain amendments were in Parliament. The amendments were withdrawn and new amendments cannot be agreed upon by the tripartite partners because one set of partners - the workers - is not prepared to join the others for the necessary discussions in order to reach agreement. And it should be said that on the criminal damages issue, one set of partners - the employers - agree with our position.

Regarding the anti-terrorism legislation, we are working on the draft of an amendment which we hope the Americans will accept. And in respect of the public order legislation we have asked the International Labour Organisation (ILO) and the United States Government to assist us to draft the amendments to the Public Order Act of 1963, which was promulgated by the British Government because there was a need for such legislation. This need continues to exist to a certain extent. In fact, you will find that every country has public order legislation albeit known by a variety of names.

And with regard to the last of the five areas under contention - the Police Code of Conduct - I can report that the Police have developed a draft of the Code which will now proceed through the various structures. Unfortunately, one of the processes is to agree the draft with the tripartite partners, one of whom – the workers – are refusing to come to the table.

Government’s plan is to continue engaging the Americans on the five issues that I have mentioned. The United States is a friendly country and our intention is to work closely with them on the issues with a view to regaining eligibility to AGOA. No policy statements on any substitution strategy has been brought to and agreed by Cabinet.

It is not a fair assessment and an appropriate conclusion to say that Government has failed to fulfil the AGOA requirements. You will recall that when the announcement to remove Swaziland’s eligibility to benefit from AGOA was officially communicated to us, we informed the nation that Government was consulting and seeking the necessary advice on how to reverse the negative decision. You will also recall that the negative decision is with effect from 1^st January, 2015. In this regard, we have a great window of opportunity in the next few months before the end of this year to engage with the US Government so that we may come into a common understanding and appreciation of how these benchmarks could be sufficiently addressed for the mutual benefit of our peoples. As I speak today, the Minister of Commerce, Industry and Trade is in the United States of America, engaging on this very same issue, which His Majesty’s Government has elevated to be part of our priority national matters that receives our immediate attention.

 

1. 11.Question

 

What is Govt’s Plan B to replace AGOA?

 

Answer

It will be rather premature for Government to start thinking and talking the language of a plan B at this stage of our different engagements and consultations on this AGOA issue. To this end, we are cognizant of the fact that the AGOA Scheme is expiring at the end of September 2015; and therefore, as you may be aware that there is a US-Africa’s leaders’ Summit next month; at which, according to our expectations, an announcement will be made by H.E President Obama for the seamless extension of this Scheme. It is then our hope that when the announcement is made and consequently the extension is effected on 1^st October 2015, Swaziland will be counted among those Sub-Saharan countries that will continue to benefit from the Scheme.

 

1. 12.Question

 

International funders for the Sicunusa to Nhlangano Road have withdrawn. Government reacted by taking disciplinary action againt officials involved in the project. Can His Excellency explain. What happened. Did corruption play a role in the tender allocation and what is the way forward to revive the project before the rains come and wash the road away?

 

Answer

International Funders have not withdrawn from the Sicunusa to Nhlangano Road project but suspended disbursing because there were certain technicalities that needed to be clarified regarding the awarded contractor. The funder’s representative came to a Swaziland 25-26^th June 2014 and these technicalities were discussed and resolved. However these representatives are still to present their Board in September 2014. Thereafter Swaziland Government will be in a position on how funding proceeds.

The transferring of officials was part of routine restructuring and strengthening of the affected Ministries. It was in line with Government’s commitment to achieve the National Vision 2022. There is no indication of corruption in the tender allocation of this project. Lastly, the project is on-going but at a reduced pace. It will proceed at an increased pace after the Funder’s Board meeting in September 2014.

 

1. 13.Question

 

The Sikhuphe international Airport was opened in May. Yet it is still not operational. Can His Excellency clarify when the airport begin to work.

 

Answer

The King Mswati III International Airport got its licence to operate from ICAO at the end of February 2014 and was officially launched on the 7^th of March 2014. This official opening by His Majesty was done after the Swaziland Civil Aviation Authority, as National Regulator of the local aviation industry, had carried out the necessary checks to ascertain readiness for accepting aircraft operations.  The airport is currently operational to international standards.  The airport is currently operational and several private flights make use of the facility on a daily basis.

What is currently in short supply are larger passenger and cargo planes.  It is anticipated that on the 1^st September 2014, Airlink will begin operations from the new airport to O.R. Tambo.  The Swaziland Civil Aviation Authority is also negotiating with other airlines to attract them to our airport.  The names of the airlines cannot be divulged at this early stage of the negotiations due to confidentiality clauses to protect expansive business plans that are being developed by these airlines. The country has a challenge of making this mode of transport more affordable to a wider section of our population.  This will then increase the market share for air travel and thus increase the aircraft numbers to carry those added passengers.

 

14.      Question

 

The airport construction is reported to have been completed, but it is now discovered that offices for airlines were not provided. How did this happen. Can His Excellency clarify.

 

Answer

There is office space provided for three airlines on the first floor of the terminal building at King Mswati III International Airport. What was not done was to partition them during the construction as airline office layouts are very specific to the operational requirements of each airline. The partitioning is done after the lease with airline intending to operate from the Airport is signed and the airline gets to approve the office layout. The decision was therefore taken to develop an un-partitioned section for airline offices giving the airlines the option to develop the office space to their own specifications and branding as and when they lease this space from the airport authority as is the norm in the industry. As more airlines take up space at the airport new office can be built to cater for them but the current setup is still adequate for the immediate needs