Africa-Press – Eswatini. The prickly issue of the mafia controlling the construction industry was again brought up during the Construction Stakeholder Forum yesterday.
The concern was raised during a Construction Industry Council (CIC) workshop in August, where it was alleged that a mafia had taken over the industry, which has resulted in the granting of lucrative tenders to foreign companies.
The forum, which was hosted by the CIC at the Hilton Garden Inn and was officially opened by Minister of Public Works and Transport Chief Ndlaluhlaza Ndwandwe, was attended by stakeholders, including Senate President, Lindiwe Dlamini.
The contentious issue was raised by a contractor, Sabelo ‘Masalesikhundleni’ Nhleko, who stated that the construction mafia had invaded the local space and caused a serious shortage of work for local contractors, civil works, consultants together with specialists in the process culminated in the loss of jobs as hundreds of Emaswati companies continued to close down due to declining revenue.
The Ngubo Yengwe Construction director, called upon the council to extensively address the issue of companies that allegedly grant tenders to foreign companies, much against dictates of the CIC Act.
During the forum, Nhleko again raised the issue, reiterating that a mafia was operating in the construction industry space.
Identifying himself as ‘Masalesikhundleni’ and a contractor under the Eswatini Contractors Association (ECA), Nhleko said it was painful that the country had a construction mafia and asked what the ministry and CIC were doing about it.
“It is painful that big companies form subsidiary companies and want to take all the available jobs,” he said.
He further asked how the small companies and people who wanted to move into the industry were going to do.
Nhleko went on to state that government and the CIC should do something about this issue and further fix it, because at the end of the day, the masses suffer.
“The growth should be even, even if there is no money in the industry, Emaswati should continue living,” said the contractor.
While the ministry reviews industry Act and regulations, Nhleko urged that they should visit the constituencies to take submissions.
Allegations
“We are here and the Act was passed in 2013, but till today, there are no regulations. People are doing as they please. People from other countries just come and take jobs, and leave Emaswati biting their nails,” he said.
He said parliamentarians should apply themselves so that the laws do not hurt companies.
However, despite his resolve that a mafia controls the construction industry, government’s position on the allegations was that it was not aware of the mafia being referred to.
Ministry of Public Works and Transport Principal Secretary Thulani Mkhaliphi, did not commit himself on the issue when the moderator of the panel discussions, Nhlanhla Maphanga, asked him to address the matter.
Stakeholders also called on government to ensure that they were given opportunities and preference over foreign companies and consultants. Mkhaliphi explained that some of the loans were obtained from outside the country, including those by the African Development Bank (AfDB) and had conditions, which allowed the foreign companies to compete for tenders.
However, the senate president said she appreciated that there were terms attached to the loans and said the country needed a policy that would allow for local companies to form joint-ventures with foreign companies if they did not have the financial muscle to perform some works.
Agreements
She said the loans were different from grants, as they were paid back by the taxpayer.
“Government should look at the difference between a grant and a loan. A grant is money given, yet a loan is to be repaid by me and my children through our tax. I would like to propose to the CIC and principal secretary that maybe the finance and economic planning ministries should look at the loan agreements that come with outside loans,” Dlamini said.
Further, she said they appreciated foreign companies who come to the country to work, but local companies should also be part of them. Meanwhile, another stakeholder expressed displeasure at the construction of the new Parliament building being given to a foreign company. Minister Ndwandwe, in his address, said the construction industry laws, regulations and policy were under review.
The minister said the government was committed to creating an equitable contracting environment, which would promote fair and equal work opportunities so that Emaswati in the industry operate growing and sustainable businesses.
He said this meant they were cognisant of the need to continuous improvement of the ease of doing business through ongoing resolution of industry concerns.
Ndwandwe said in September 2023, they commenced the process of reviewing the Construction Industry Policy, Act and Regulations, a process set for completion by the end of April 2024. He further urged stakeholders to participate actively in the review process, as it presented the means of identifying gaps and further improvement of the effectiveness of the Construction Industry Regulatory Framework.
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