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Government rebuts claims of ENPF remittance failures

Hon. Phila Buthelezi, Minister of Labour and Social Security, Eswatini. Hon. Phila Buthelezi, Minister of Labour and Social Security, Eswatini.
Hon. Phila Buthelezi, Minister of Labour and Social Security, Eswatini.

Mbabane – Eswatini’s Ministry of Labour and Social Security refutes assertions that it does not send retirement contributions for its employees to the Eswatini National Provident Fund (ENPF). 

The ministry issued a statement on June 1 stating that the allegations by the business Eswatini that the government does not contribute even “one lilangeni” to the fund were incorrect and potentially misleading.

“This assertion is factually incorrect and has the potential to mislead the public regarding the government’s role in supporting the fund,” the statement reads. 

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According to the statement, ENPF receives more than E20 million per year from the government as members’ contributions. This, it was said, includes statutory contributions for all eligible employees engaged on fixed-term contracts and other temporary engagements who do not qualify for the membership of the Public Service Pension Fund (PSPF). 

Fixed-term contract personnel hired for national statistical surveys, population censuses, and various short-term government programs are considered to be included.

The ministry said the government cannot abandon its own creation, the ENPF, which is established and regulated under the laws of the Kingdom of Eswatini. It also said the government must comply with the filling of key cabinet appointments.

“Like all Category A public enterprises governed in terms of the Public Enterprises (Control and Monitoring) Act, 1989, its Chief Executive Officer, chief financial officer, and governing board are appointed by the cabinet. 

“The ENPF is therefore not a private institution but a public entity established, regulated, and overseen by the government,” the statement reads.

The statement says the origins of the ‘Lidlelantfongeni’, as ‘a national initiative aimed at promoting social security, savings, and income protection for workers in Eswatini’, have been maintained, and ENPF has the government backing.

It says the government is dutybound to continue safeguarding ENPF’s sustainability and ensure that it remains capable of fulfilling its obligations to contributors and beneficiaries as the initiating authority and regulator. The government provides necessary policy, legislative, and institutional support, it was said. 

“Moreover, the government has a duty to ensure that the ENPF remains financially sound and capable of meeting its obligations to members. Any failure by the fund to honour its obligations would inevitably require government intervention in order to protect contributors and maintain confidence in the country’s social security system.

“The ministry therefore urges all social partners and stakeholders to verify information before making public statements on matters of national importance,” the statement says, urging against making pronouncements that are not supported by facts, as they could have the potential to create unnecessary alarm among contributors and beneficiaries, undermine confidence in national institutions, and strain relations among social partners.

It makes a commitment to a constructive social dialogue and promises to work collaboratively with employers, workers, and all stakeholders in advancing the socio-economic interests of the country. 

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