…. Ministry says over E20 million remitted annually, sets record straight on Government’s role in national provident fund
BY MBONGENI NDLELA
MBABANE – The Ministry of Labour and Social Security has strongly refuted claims that Government does not contribute “even one lilangeni” to the Eswatini National Provident Fund (ENPF), describing such assertions as factually incorrect and potentially misleading to the public.
In a detailed statement issued on Monday, the Ministry moved to clarify Government’s financial contributions and institutional role in the ENPF following recent comments by Business Eswatini that questioned Government’s involvement in the fund.
The Ministry revealed that Government contributes more than E20 million annually to the ENPF on behalf of eligible employees engaged under fixed-term contracts and other temporary arrangements who do not qualify for membership in the Public Service Pension Fund (PSPF).
These include workers employed under fixed-term contracts, personnel recruited for national statistical surveys and population censuses, as well as individuals engaged in various short-term Government programmes.
“Government remits in excess of E20 million annually to the ENPF in respect of these categories of employees. It is therefore inaccurate and misleading to suggest that Government does not contribute to the Fund,” the Ministry stated.
The clarification comes amid growing public debate surrounding the future, governance and sustainability of the ENPF, one of the country’s most important social security institutions.
ENPF A PUBLIC ENTITY, NOT PRIVATE
The Ministry further stressed that the ENPF is not a private institution but a public entity established, regulated and overseen by Government.
According to the statement, the ENPF is classified as a Category A Public Enterprise under the laws of Eswatini and is governed in terms of the Public Enterprises (Control and Monitoring) Act of 1989.
As with other Category A public enterprises, the Fund’s Chief Executive Officer, Chief Financial Officer and Governing Board are appointed by Cabinet.
The Ministry said this legal and institutional framework demonstrates Government’s direct involvement in the establishment, regulation and oversight of the Fund.
The Ministry also highlighted the historical roots of the ENPF, noting that the Fund traces its origins to “Lidlelantfongeni,” a national initiative designed to promote social security, savings and income protection for workers in Eswatini.
GOVERNMENT RESPONSIBLE FOR STABILITY OF FUND
Beyond financial contributions, Government argued that it carries an ongoing responsibility to ensure the long-term sustainability and stability of the Fund.
As the founding authority and regulator, Government provides policy direction, legislative support and institutional oversight aimed at safeguarding contributors and beneficiaries.
The Ministry noted that any failure by the ENPF to meet its obligations would inevitably require Government intervention to protect members and maintain confidence in the country’s social security system.
CALL FOR RESPONSIBLE PUBLIC DEBATE
The Ministry urged social partners and stakeholders to verify information before making public pronouncements on issues of national importance.
It warned that statements not supported by facts have the potential to create unnecessary concern among contributors and beneficiaries, weaken confidence in national institutions and strain relations among social partners.
COMMITTED TO COLLABORATION
Despite the dispute, the Ministry reiterated Government’s commitment to constructive engagement with employers, workers and all stakeholders in advancing Eswatini’s socio-economic development agenda.
The statement concluded by expressing confidence that the clarification would help set the record straight regarding Government’s contributions to and support for the Eswatini National Provident Fund.
