MORE DIRE NEWS ON SWAZI ECONOMY

Swaziland, the kingdom that has been mismanaged by its ruler King Mswati III, sub-Saharan Africa’s last absolute monarch, and the governments he appoints, for years, faces one of the worst economic crises among nations in Southern Africa, a report just published by the International Monetary Fund (IMF) reveals.

And, Swaziland will probably never again return to the level of income it once enjoyed from the South African Customs Union (SACU).

The IMF-published report concludes that Swaziland must cut public expenditure severely; especially its wage bills, and not let it rise to previous levels in the foreseeable future.

At the same time, the kingdom must increase its revenues (especially from taxes) to get out of the economic mess.

And on top of this, Swaziland will have to pay back money to the SACU that it received in the past. This is because from 2004 to 2007 the money collected by SACU was much higher than expected and ‘windfall’ payments were made to countries in the union, including Swaziland.

Swaziland considered this ‘windfall’ to be ‘a permanent increase and was thus used mostly to finance recurrent expenditures, including civil service wage increases,’ the report states.

But the report also states, ‘this boom turned out to be unsustainable’ and since 2008 revenues (especially customs duty collections) have been lower than expected, so that Swaziland will have to make repayments to the SACU (because of an agreement it made with the SACU in 2002). This means that until 2013 Swaziland will receive even less from the SACU than it expected, until the debt is repaid.

The report states that there will probably be a gradual improvement in Southern African economies from 2012, but in Swaziland it will take longer because of the relatively larger amount of money it owes SACU, compared to other countries.

The report points out that in other SACU countries, including Namibia and Botswana, some of the ‘windfall’ revenues were used to stimulate the economy (for example by building infrastructure and social programmes) whereas, ‘Most of the expenditure increases in Swaziland went into wage increases to civil servants.’

The report states that unless ‘substantial’ financial measures are taken immediately, in Swaziland, the debt-to-Gross Domestic Product (GDP) ratio, at 13.3 percent in 2009, is predicted to increase more than six-fold to 75.1 percent by 2015. As a comparison, the debt-GDP ratio of Namibia is calculated at 29 percent.

If financial measures are taken the prediction is that Swaziland’s debt-GDP ratio in 2015 will still be massive at 38.9 percent, nearly three times the 2009 level, but, according to the report, ‘manageable’.

To get out of the economic mess, the report concludes that Swaziland should introduce Value Added Tax (VAT) on goods and services, increase taxes and stamp duties and improve tax administration.

It also recommends Swaziland implements ‘well-planned permanent expenditure cuts,’ and ‘in particular, a comprehensive civil service reform to reduce the sizable wage bill seems a priority’. It also wants cuts in ‘non priority current spending’.

To read the report, In the Wake of the Global Economic Crisis: Adjusting to Lower Revenue of the Southern African Customs Union in Botswana, Lesotho, Namibia, and Swaziland, click here.

See also

THE GOVERNMENT'S ECONOMIC CRISIS

http://swazimedia.blogspot.com/2010/12/governments-economic-crisis.html

SWAZI PM AND ECONOMY MELTDOWN

http://swazimedia.blogspot.com/2010/12/swazi-pm-and-economy-meltdown.html

SWAZILAND ON BRINK OF COLLAPSE

http://swazimedia.blogspot.com/2009/12/swaziland-on-brink-of-collapse.html

HOW THE KING CONTROLS SWAZILAND

On Monday (3 January 2011), I reported on how King Mswati III, sub-Saharan Africa’s last absolute monarch, and his Royal Family were abusing their positions in Swazi embassies across the world.

The way the Royal Family dominates what passes for ‘public life’ in Swaziland is insidious: it invades all parts of the kingdom.

In October 2008, I wrote the following report, which I think is worth digging out the files so that we can be reminded how the king keeps control of ‘his’ kingdom.

SWAZI KING KEEPS IT IN THE FAMILY

There’s nothing quite like a family business for making sure everyone pulls together.

In Swaziland the business of political repression is run by the Dlamini family with the monarch at the head of the family.

Last week we saw a Dlamini appointed head of government (Prime Minister) by King Mswati III. In Swaziland only a Dlamini can be Prime Mimister. There’s no law that says this and it certainly isn’t in the constitution, but that’s the way it is. That’s the way the ruling family holds on to power.

Last week the king also announced his choices for Senate (he chooses 20 out of the 30 places, MPs choose the other ten. None are elected by the people). Four of his choices are princes or princesses and another five are chiefs.

In Swaziland chiefs do the king’s bidding at a local level. People know not to mess with the chief because their livelihood depends on his goodwill. In some parts of Swaziland the chiefs are given the power to decide who gets food that has been donated by international agencies. The chiefs quite literally have power of life and death in such cases and with 65 percent of the population of Swaziland receiving food aid last year that’s some power.

The speaker of the House of Assembly is also a prince.

There have been new appointments to the Swazi National Council Standing Committee (commonly known as Liqoqo). This is the ‘advisory’ body to the king and is in effect the committee that decides the traditional law of Swaziland. And in Swaziland traditional law beats the constitution if ever there is a clash. It is also generally accepted (at least by Liqoqo) that it can veto any decision made by the Swazi parliament.

There are three so-called ‘royal committees’.

The Weekend Observer (18 October 2008) published the names of all three committees and they break down like this.

Liqoqo has 22 members, seven are princes / princesses, six are family Dlamini and three are chiefs.

The 15 members of the Ludzidzini Committee, which advises the Queen Mother, are four princes / princesses, two are Dlamini and four are chiefs.

The third royal committee, the Border Determination Committee, has 12 members, three princes / princesses, three from Dlamini and one chief.

The Times of Swaziland today (22 October 2008) reckons that in total at least 20 princes and princesses and 16 chiefs have been appointed to highly influential decision-making positions that they will occupy for the next five years.

We are still waiting for the king to appoint the cabinet.

With public life in Swaziland effectively carved up by the king to ensure that everyone is singing his praises (if you took away these posts from the family members what would they do all day?) is it any wonder that the kingdom is in the dire state it’s in today?

DAFT STORY OF SWAZI ARMY DEMONS

Somebody is having a laugh: the trouble is I’m not sure who it is.

It is reported that the brave Swazi Army was attacked by demons and 500 soldier recruits had to be sent home to recover.

The demons were ‘evil spirits’ and created ‘hysteria’ among the army personnel.

The Swazi Observer, the newspaper in effect owned by King Mswati III, took this information at face value and made it the paper’s main front page story today (4 January 2011).

The paper reports that the demons struck at Mbuluzi Barracks just before Christmas and the ‘hysterical’ soldiers were released to spend the holiday season with their families.

It all started when one woman recruit ‘suffered an attack’ from the demons and ‘screamed out loud like she was seeing weird creatures’, the Observer reports.

Then a lot more women behaved the same way and screamed and spoke in tongues.

The Observer reports that a day later the demons attacked male recruits and as with the female recruits they also screamed and some attempted to run away.

It was then that the army priests were called because the administration feared that the situation might get out of hand.

After they were all prayed for, army headquarters sent the recruits home for a week.

Well you can knock me down with a feather. What a great trick by the recruits to get an extra week’s holiday and just how gullible are the army commanders who let them get away with it?

It gets worse. Because it seems no one at the Army even thought for a moment that they were being taken for a ride.

The Observer quotes an anonymous ‘highly placed source’ who said the Army really got worried once the male soldiers were also attacked.

The source said, ‘We all know that hysteria normally attacks women, but it was not the case at Mbuluzi.’

Army Public Relations Officer Major Khanya Dlamini confirmed the story, but said there was nothing to worry about. The army believed in prayer more than anything and so were not shaken by the attacks, he told the Observer.

‘Even though we knew that the recruits were somehow in danger, we were ready to fight the attacks through prayer and be successful; we believe in prayer.’

Dlamini added that they had no alternative but to suspend classes as well as physical training for the recruits.

The Observer said, ‘He assured parents of the over 500 recruits and the nation at large that even though the aspirant soldiers had not been training for almost two weeks they would be able to catch up.’

The recruits returned to barracks after the New Year. ‘It is business as usual for the recruits and they are lucky to rest for such a long period as this was the first time for recruits to get so many days off,’ Dlamini said.

So you tell me: who is a having a laugh? Is it the recruits who pulled a trick to get an extra Christmas holiday? The Army commander who let them do it? The Army PRO who reckons that prayer saved the day? Or is it the Swazi Observer for going along with the story?

What? You don’t believe it is a joke. You think everybody involved in the story really believes the recruits were attacked by demons.

No, that can’t be the case. Swaziland is fast becoming a ‘First World’ nation. Remember? King Mswati told us so.

PUDEMO CONGRESS POSTPONED

Harassment by Swaziland Police has forced the People’s United Democratic Movement (PUDEMO) to postpone its National General Congress, starting Thursday (6 January 2011).

In a short statement, released today (4 January 2011), PUDEMO says its leaders have been unable to plan properly for the event because of ‘the constant disruptions by the royal police’ every time they try to meet.

PUDEMO said although the congress is postponed it will be held and an announcement of a new date will be made shortly.

About 250 delegates from PUDEMO branches across Swaziland were expected to attend the congress from 6 – 9 January.

In a statement issued last month, PUDEMO said the congress was expected to provide the impetus for the turning point in the history of the movement and the struggle for democracy in Swaziland. PUDEMO is presently banned in Swaziland and has been branded a ‘terrorist’ organisation by the Swazi Government.

The congress theme is, ‘Building a national momentum as we advance towards multiparty democracy.’ The congress was expected to address a number of issues, including the role of the Swaziland Monarchy in a democracy; building a strong mass democratic movement for change and the type of movement that is needed under the present political situation in Swaziland.

DEPUTY PM BOASTS OF HIS MILLION

Swaziland’s Deputy Prime Minister Themba Masuku, who is at the centre of a corruption probe over land sales, has boasted that he is a millionaire.

Masuku, who believes he should be appointed the next Deputy General Secretary of the United Nations, said he had worked hard to get his money and he was ‘clean’.

The boastful Masuku told a group of Christians that he was motivated by his own childhood poverty to become rich.

I’m sure that will be music to the ears of the seven in ten people in Swaziland who live in abject poverty, earning less than one US dollar a day.

And also to the poor Swazi people he reportedly stole land from in a controversial deal that also involved Barnabas Dlamini, Swaziland’s illegally-appointed Prime Minister, four members of the Swazi Royal Family and at least nine cabinet ministers (past and present).

He may be proud of his wealth, but he has a long way to go to catch up with King Mswati III, sub-Saharan Africa’s last absolute monarch, who has a personal net worth, estimated by Forbes in 2009 to be about E1.4 billion (US$200 million).

Masuku was quick to tell the Times of Swaziland, the kingdom’s only independent daily newspaper, that being a millionaire did not mean he had E1 million (about US$150,000) in cash, as his assets made up most of it.

The Times reported, ‘Masuku said the millions were in the form of a farm which he bought while still employed in the private sector. The farm is in Malkerns.

‘“It should be noted that I finished paying it off when I was employed by government,” Masuku told the Times. He also revealed that he had property at Eveni.

The Swazi Observer, the newspaper in effect owned by King Mswati, reported, ‘he did not elaborate on how he attained the millionaire status save to put emphasis on the fact that he worked above board’.

The Times reported, ‘He said it was possible to be a millionaire as long as people changed their mindsets towards living.’

If wealth were evenly distributed in Swaziland, everyone would be a millionaire, according to resident United Nations (UN) coordinator Musinga Timothy Bandora, who claimed this in October 2008.

What he realised was that Swaziland isn’t a poor kingdom when you measure its total wealth: the problem is that the wealth is being siphoned off by a few people – with King Mswati and the Royal Family top of the tree.

What’s left, and it isn’t much, goes to the people.