….Acting CEO promises major changes
BY SIFISO NHLABATSI
LOBAMBA- The financial and governance crisis engulfing the Hlathikhulu Town Board came under intense scrutiny in Parliament after it emerged that the local authority spends about E2 million on salaries, an amount that accounts for 97 percent of its revenue, leaving only three percent to fund operations.
The revelations were made during a sitting of the Public Accounts Committee (PAC), where the Ministry of Housing and Urban Development appeared alongside the Hlathikhulu Town Board, Vuvulane Town Board and Ngwenya Town Council to respond to issues raised by the Auditor General.
Auditor General officials painted a grim picture of Hlathikhulu’s financial position, revealing that the town recorded a net operating deficit of E3.7 million, with the deficit increasing annually. Operating expenses currently stand at E7 million, reflecting an increase of E400,000, a trend the Auditor General described as unsustainable.
The Auditor General advised the town board to tighten expenditure by eliminating non-value-adding costs and strengthening financial management. The wage bill, however, emerged as one of the biggest concerns.
According to the Auditor General, the town’s E2 million salary bill consumes 97 percent of its revenue, making it nearly impossible for the municipality to carry out basic operations and service delivery.
Committee members also sought answers from the Ministry over how the situation had deteriorated to such an extent, repeatedly asking where the Ministry’s oversight had been while governance at the town board collapsed.
Responding to the concerns, Principal Secretary in the Ministry of Housing and Urban Development, Dr Simon Zwane, openly acknowledged that the Ministry had failed in its oversight responsibilities.
“We did not play a proper oversight role at Hlathikhulu Town Board over the years. What happened, happened right in front of us, which is a very shameful thing, I must admit that. But we are now committed to restoring the dignity of the town,” he told the committee.
Dr Zwane explained that after assuming office in 2023, the Ministry conducted an assessment of local authorities and identified Hlathikhulu as one of the municipalities facing serious governance challenges.
He said reports pointing to illegal land allocations prompted the Ministry to dispatch an investigation committee before commissioning an internal audit after financial records raised further concerns.
According to the Principal Secretary, the internal audit exposed widespread governance failures, prompting the establishment of a Commission of Inquiry before the audit process had even concluded.
The commission later uncovered what Dr Zwane described as shocking levels of corruption, revealing that governance structures at the town board had effectively collapsed.
Even before the commission completed its work, the Ministry had already referred matters to law enforcement agencies, including the Police Fraud Department.
The commission eventually produced 77 recommendations, which now form the basis of a recovery plan aimed at restoring proper governance and accountability at the municipality.
To spearhead the turnaround strategy, the Ministry appointed Kenneth S. Fakudze as Acting Chief Executive Officer and Town Clerk for a period of 12 months.
Dr Zwane said Fakudze had been given clear terms of reference centred on implementing the commission’s recommendations and restoring public confidence in the municipality.
Reflecting on the state of the town, Dr Zwane, who said he hails from Hlathikhulu, expressed disappointment over its slow development despite being one of the country’s oldest towns.
He noted that historical accounts even suggest Hlathikhulu had once been considered as a possible capital city of Eswatini, but today its condition tells a different story.
“I am now 53 years old, and there are very few structures that have been developed over the years. The only thing that can truly be said to be of value is the hospital,” he said.
Acting CEO Kenneth S. Fakudze told the committee that Hlathikhulu dates back to 1924, when it was already serving administrative functions in the Shiselweni Region.
He said the town, which has a night-time population of about 5,000 people and covers approximately 300 hectares, had gradually been overtaken by other towns in the region.
Fakudze assured Members of Parliament that corrective measures had already begun.
He said the municipality had introduced cost-cutting measures and was now strictly adhering to procurement procedures in an effort to improve financial discipline.
Some Members of Parliament questioned whether the Acting CEO’s 12-month appointment would be sufficient to implement all 77 recommendations.
Dvokodvweni MP Sifiso Shabalala suggested that the timeframe be extended, arguing that the challenges facing the municipality were too extensive to resolve within a year.
PAC Vice Chairperson Manzi Zwane also acknowledged that implementing 77 recommendations in just 12 months would be difficult but expressed confidence that Fakudze was capable of delivering meaningful reforms.
Committee members further questioned whether government would recover funds allegedly lost through corruption.
Dr Zwane said the issue of recoveries would depend on the advice and progress of law enforcement authorities currently handling the investigations.
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(Courtesy Pic)
