BY MBONGENI NDLELA
MBABANE– Minister of Labour and Social Security Phila Buthelezi has dissolved the Board of Directors of the Eswatini National Provident Fund (ENPF) with immediate effect, just a day after Parliament adopted a report recommending that the board be reconfigured following months of governance turmoil at the country’s largest social security institution.
The decision was announced through a public statement issued by the Ministry of Labour and Social Security, in which the minister informed the nation that the ENPF Board had been dissolved with immediate effect.
The statement further indicated that the appointment of a new board would be communicated in due course.
The swift action by the minister comes less than 24 hours after Members of Parliament adopted the report of the Portfolio Committee on Labour and Social Security, which concluded that the governance impasse at the Fund had reached a point where decisive intervention had become unavoidable.
The committee had specifically recommended that the Minister dissolve and reconstitute the Board within seven days of the adoption of the report, arguing that the prolonged conflict had weakened corporate governance, delayed strategic decisions and damaged public confidence in one of Eswatini’s most important public institutions.
Parliament’s recommendation
The parliamentary committee, chaired by Lobamba Lomdzala MP Marwick Khumalo, carried out an extensive inquiry into the governance crisis that has dominated the ENPF for several months.
After hearing evidence from various stakeholders, the committee concluded that the dispute surrounding the appointment of Board Chairperson Derrick Shiba had become the central source of instability within the Fund.
The committee found that disagreements over the board’s leadership created divisions that ultimately paralysed decision-making and undermined effective governance.
Among its strongest recommendations was that the current board be dissolved and reconfigured in full compliance with the ENPF Order No. 23 of 1974, as amended.
The committee also recommended the nullification of the appointment of the Board Chairperson, saying the appointment lay at the centre of the governance crisis.
With the minister now dissolving the board, government has effectively acted on one of Parliament’s key recommendations.
Background to the crisis
The governance dispute at the ENPF has been one of the most closely watched institutional controversies in recent months because of the Fund’s critical role in safeguarding the retirement savings of thousands of workers across the country.
The ENPF manages billions of Emalangeni in pension and provident fund assets on behalf of contributing employees and employers, making stability within its leadership essential to maintaining public trust.
The controversy intensified after concerns emerged regarding the composition of the board and the process surrounding the appointment of its chairperson.
Differences between board members reportedly escalated into a prolonged governance deadlock, affecting board operations and attracting public scrutiny.
The matter eventually reached Parliament, where lawmakers resolved to investigate the circumstances that had led to the governance impasse.
During the inquiry, MPs heard evidence from ministry officials, board representatives and other stakeholders before concluding that immediate corrective measures were necessary to restore stability.
The committee emphasised that while differences of opinion are common within boards, they should never be allowed to compromise the governance of institutions entrusted with workers’ lifetime savings.
Restoring confidence
The dissolution of the board is expected to pave the way for the appointment of a new leadership structure that will oversee the Fund’s operations and implement governance reforms recommended by Parliament.
The incoming board is expected to restore confidence among contributors, employers and other stakeholders while ensuring that the Fund continues to fulfil its mandate of protecting members’ retirement benefits.
Governance experts have consistently stressed that strong oversight, transparency and accountability are fundamental to institutions such as the ENPF, whose financial decisions directly affect the livelihoods of thousands of emaSwati.
The appointment of a new board will therefore be closely watched by contributors and the wider public, who will expect a leadership team capable of rebuilding trust, strengthening governance systems and focusing on the long-term sustainability of the Fund.
The Ministry of Labour and Social Security has indicated that further announcements regarding the constitution of the new board will be made in due course.
The development marks a significant turning point for the ENPF and represents one of the fastest government responses to a parliamentary resolution in recent years, signalling an effort to restore stability and reinforce public confidence in one of Eswatini’s most strategic public institutions.
(Courtesy Pic)
