BY MBONO MDLULI
LOBAMBA – Hhukwini Member of Parliament (MP) Alec Lushaba has argued that parastatals such as the Eswatini Electricity Company (EEC) and the Eswatini Water Services Corporation (EWSC) should not be required to declare dividends to the government.
During the 2024/25 annual performance debate for the Ministry of Finance on 25 February 2025, held at the Senate by MPs who are members of the portfolio committee for the Ministry of Finance, Lushaba expressed his disapproval of the EEC’s decision to declare dividends amounting to E4 million to the government. He was quoted as saying that it was inappropriate for a company tasked with providing essential services such as electricity to Emaswati to prioritise profit-making for the government.
Lushaba stated, “I was surprised to learn that the EEC declared dividends of E4 million to the government. This is unacceptable for a company whose primary mandate is to provide a basic necessity like electricity to the people of Eswatini. The government should not expect financial gains from such entities, as this would imply that it is benefiting from electricity tariff hikes, which is fundamentally wrong.”
Minister of Finance Responds
Minister of Finance Neal Rijkenberg reportedly interjected on a point of order, seeking clarification on Lushaba’s assertion that the government was “transgressing” by receiving dividends from the EEC. Rijkenberg reminded the House that the legislation allowing the government to collect dividends from parastatals was enacted by Parliament itself. He emphasised that the government was operating within the legal framework established by MPs.
Lobamba Lomdzala MP Marwick Khumalo, who was chairing the debate, supported Rijkenberg’s clarification. Khumalo explained that the law permits the government, as the parent institution of parastatals, to receive dividends if these entities generate profits. He suggested that if Lushaba opposed this practice, he should consider moving a motion in the House of Assembly to amend the legislation.
Lushaba’s Revised Position
Following the clarification, Lushaba reportedly acknowledged that his use of the term “transgressing” could be misplaced. However, he maintained that it was a mistake for Parliament to have allowed companies like the EEC and EWSC to declare dividends to the government. He argued that these entities were established to provide essential services such as electricity and water, not to generate profits for the state. Khumalo, in response, reportedly remarked that he had expected Lushaba to announce his intention to move a motion in the House to halt the practice of requiring dividends from parastatals like the EEC and EWSC. He questioned whether such a motion would garner sufficient support to pass.
Context and Implications
The debate highlights ongoing concerns about the role of parastatals in Eswatini and their obligations to the government. Critics argue that prioritising profit-making over service delivery undermines the core mandate of these entities. On the other hand, proponents of the current system contend that the government’s receipt of dividends is legally justified and supports broader fiscal objectives. The discussion raises important questions about the balance between financial sustainability and the provision of essential services, particularly in a context where access to electricity and water remains critical for the well-being of Emaswati.
