Africa-Press – Eswatini. The Ministry of Housing and Urban Development has been ordered by the Public Accounts Committee (PAC) to withdraw Eswatini’s membership from Shelter Afrique, primarily because the Kingdom has continuously failed to derive value for money from affiliation with the organisation.
In the 2024 annual report, Auditor General Timothy Matsebula reported that the ministry continued to pay a significant amount for the ‘share capital subscription 2013 Call’ to Shelter Afrique, yet the value and benefits were not reported to quantify the investment cost.
The AG reported that the ministry paid an amount of E4.6 million in the fiscal year, which was under review, and E4.9 million in the previous financial year which ended March 31, 2021.
Hence, the demonstration of the achievements, value for money, and value benefits received by the country from hefty subscriptions to Shelter Afrique were essential for the accountability of public funds.
Matsebula informed PAC that the Controlling Officer, Principal Secretary (PS) Simon Zwane, submitted that Eswatini became a shareholder at Shelter Afrique in the year 2007 and explained that it currently holds a 0.48 per cent shareholding in the company.
The AG stated that Zwane explained that the country was unable to derive benefits as it owed subscriptions to the organisation worth around US$ 1 143 107 (approximately E21 719 033).
Matsebula said the Controlling Officer failed to produce proof before the committee showing benefits for the country bysubscribing to Shelter Afrique.
“Instead, the country has accumulated a hefty debt of over E20 million to this organization with no tangible benefits,” said Matsebula.
The PS acknowledged that the AG’s concern had also been raised by the Planning and Budgeting Committee (PBC).
“We then wrote to them (Shelter Afrique) and met them in person during the Annual General Meeting (AGM).
We wrote a letter raising concerns and finding out what would be the implications of pulling ourselves out as a country. Shelter Afrique disclosed that they were now a development bank.
Auditor General Timothy Matsebula
Therefore, the concern about benefits would change as the country could access funding for infrastructure,” Zwane explained.
He said Shelter Afrique explained that what appeared to be an E20 million debt had been written off.
“It was not a debt in the first place, it was an offer for shares which was not taken up by the country in various instances which then accumulated as if the country had been accumulating debt hence it was written off.
As a ministry, we advise the country to remain in Shelter Afrique while interrogating the benefit,” Zwane said.
PAC Vice-Chairperson and Nhlambeni MP Manzi Zwane asked Zwane to explain what proof the ministry has attesting that indeed the debt has been written off.
“Do we subscribe as a country apart from the shareholder offerings from time to time? May we also be furnished with documentation detailing proof,” he emphasised.
Sandile Nxumalo, Somntongo MP, said, “I believe what has been stated by the AG. This is taxpayers’ money, we cannot continue committing funds when we do not derive any value. What were the benefits of being a member in the first place?”.
Masiphula Mamba, Kubuta MP, submitted that the country should withdraw from Shelter Afrique because it does not derive benefits.
“We will re-join when it assists us in their development bank. For now, let us withdraw,” he recommended.
Nxumalo went on to advise that there was an urgent need to be very careful when committing the country to organisations, especially where funds would be committed.
The PAC Vice-Chairperson also insisted that the ministry should produce proof of what benefit was derived by the country.
In response, the PS said, “When we asked what would happen if we withdrew, they (Shelter Afrique representatives) came to Eswatini for a presentation.
However, we could not locate AG and Finance, so they stayed two days without any meeting being convened successfully.
We also learnt the UN House was built with a loan from Shelter Afrique. Even though it was a loan, we got the loan just because the country is a member.
There are no dividends deposited into the government account.”
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