BY PHUMELELE MKHONTA
MBABANE– The International Convention Centre & Five Star Hotel (ICC&FISH) is not collateral.
This is according to the Minister of Economic Planning and Development Dr. Tambo Gina, who said this yesterday in a press conference which was rectifying a newspaper article titled ‘Eswatini Taiwan Debt Trap’.
During the press conference at Cabinet yesterday, the Minister said in March 2023, in an article titled ‘Eswatini Taiwan Debt Trap’ with regard to the financing of the International Convention Center and Five Star Hotel, they wished to set the record straight as to what transpired in Parliament, as can be borne out by Hansard.
“A question was raised, by a Member of Parliament, as to whether it is true or not that the Exim Bank’s (Taiwan) loan for the construction of the ICC&FISH terms and conditions include pledging the assets (the Convention Center and the Hotel) that can be taken over by Taiwan in the event of default by government in servicing the loan.
“The response by the Minister for Economic Planning and Development was that it is not true that the International Convention Center & Five Star Hotel has been pledged as collateral. And, that the Minister had read the original Loan Agreement and it does not contain any such requirements; and, that the Minister is not aware if there are any agreements with such conditions, but it can be categorically stated that the ICC & FISH lines of credit do not involve pledging of assets as collateral in accordance with the laws of the Kingdom of Eswatini particularly the Public Finance Management Act,” explained the Minister yesterday.
Gina further said the perception created by the article and subsequent commentaries have created an erroneous and regrettable disinformation campaign against a loyal and steadfast ally of the Kingdom of Eswatini.
“The Government of the Kingdom of Eswatini bilateral cooperation with the Government of the Republic of China (Taiwan) which dates back to 1968 is above board and conforms to the Constitution and the country’s laws, especially Section 53 (1) and (2) of the Public Finance Management Act of 2017. The cooperation also aligns with the cooperation agreements that the country has with other development partners that are providing development assistance to the country.
“The two countries’ Governments have over the years signed periodic agreements to guide their cooperation in agreed areas of mutual interest,” said the Honourable Minister.
He stated that the agreements allocate non-repaid resources (grants) to the Kingdom of Eswatini for developmental purposes and cultural heritage.
“Grant assistance has been allocated to the Kingdom of Eswatini over the years towards the following areas:
- The Taiwan Technical Mission
- The Taiwan Medical Mission
- KMIII Airport and Bio-Technology Park
- Agricultural and rural development
- Human resources development through improved education and health
- Infrastructure development
- Information Communication Technology Development
- Enhancing human resources development through improved education and health
- Enhancing food security
- Other Socio-economic development projects supporting the Sustainable Development Goals (SDGs) and other objectives of the KOE (e.g. rural electrification program, potable water supply program)
“The R.O.C on Taiwan provides tremendous assistance to the Government and people of Eswatini expecting nothing other than the love and gratitude of emaSwati.”
