MBABANE: Masotja Vilakati, the Chief Executive Officer(CEO) of the Public Service Pension Fund(PSPF) says, Old Mutual is better positioned to respond and explain the circumstances surrounding the alleged intention to award a R1.2billion Hydropower tender to foreign company.
Old Mutual in partnership with the eSwatini Pension Fund will soon embark on a power-generation project at Lusutfu River-Sidvokodvo, the tender is known as the Lower Maguduza Hydropower Scheme.
The PSPF Chief Executive Officer was responding to a questionnaire from this Swaziland News on Sunday afternoon, amid allegations suggesting that, the Management of public entity was preparing to award the R1.2billion tender to an alleged foreign company.
“Send a questionnaire to Elkan Makhanya.Nonetheless,the Lower Maguduza project is an Old Mutual project, most questions can be answered by them,” said the PSPF CEO.
A questionnaire was sent to Elkan Makhanya, the PSPF Corporate Affairs Director, however, he had not responded at the time of compiling this report.
But according to documents in our possession, PSPF and Old Mutual is in the process of shortlisting contractors and internal correspondence suggests that, on the 15th August 2023, a site visit would be conducted at or near Lusutfu River by the shortlisted contractors and/or together with officials of the Pension Fund and Old Mutual.
It is alleged that the Pension Fund Management is preparing to submit documentation to the Board of Directors, recommending the South African company, much against local construction industry and procurement laws.
The name of the South African company is known to this publication but cannot be revealed as efforts are being made to seek clarity on other issues surrounding the tender.
Sammy Dlamini, the Public Service Pension Fund(PSPF) Board Chairman confirmed that, the Pension Fund “is a shareholder in the hydropower” project but, clarified that his role as the Chairman was more on the corporate strategy and policies.
Dlamini stated that, as the PSPF, they expect local construction companies to be given preference in the tendering process adding that, the local company awarded the energy tender can then source services outside the country if a need arise.
“I am aware of the tender you are asking me about, as the Pension Fund, we have 30% shareholding in that project.But we are still in the selection process and I don’t think we can overlook local companies. In fact local companies must be given preference and if they want to outsource other services outside the country through joint ventures, they can do so.As you are aware, I am a Board Chairman and I’m more on strategy and policies so I am not directly involved for now in the process”,said the Pension Fund Board Chairperson.
Speaking to this Swaziland News on Sunday evening, Vusi Matsebula, the Chief Executive Officer(CEO) of the Eswatini Public Procurement Regulatory Agency said, tenders by their nature, are self-regulatory according to the terms of reference.
“We cannot conclude that awarding a tender to foreign company is unlawful because tenders by their nature, are self-regulatory. It depends on the nature of the tender, if it’s open to international companies, then there’s nothing wrong,”said the CEO of the Eswatini Public Procurement Regulatory Agency.
Reached for comments by this publication, Muzi Bell, the Old Mutual Eswatini Chief Executive Officer(CEO) said, it was too early to conclude that the tender will be awarded to an international company.
“This is at a very early stage.Normal tender processes apply underpinned by CIC regulations.I can summarize the process as follows.We just invited expression of interest/qualification from local and international contractors.This will be followed by a site inspection by all contractors who expressed interest.Then we go for a full tender i.e designs and engineering.The final step is the award.You might be aware that even if an international contractor comes top, statutory regulations require a joint venture with a local contractor May I end by saying that the process is at an early stage Dlamini”, said the Old Mutual CEO in a message sent to this Swaziland News on Sunday.
On another note, the Lower Magaduza Hydropower Project seeks to, among others, generate at least 13.5MW, it will create sustainable jobs and employ one-hundred(100) emaSwati.
The partnership between the Pension Fund and Old Mutual recently signed an agreement with the Eswatini Electricity Company(EEC) and, in terms of the agreement, the electricity to be generated through the project, will be sold to EEC for a period of twenty-five(25) years.
Public Service Pension Fund offices.