Parly moves to stop double appointments in parastatal, SOE boards

By Kwanele Dhladhla

Parliament has moved a motion calling for the immediate end of the controversial practice of appointing the same individuals to serve on multiple boards of parastatals and state-owned enterprises (SOEs).

The motion, which was moved by Lobamba Lomdzala (MP), Marwick Khumalo, and seconded by Nhlambeni MP Manzi Zwane, is yet to be tabled in the House of Assembly on Thursday according to the Order Paper, which was issued by Speaker in the House of Assembly, Jabulani Mabuza.

In the motion, Khumalo decried what he termed “glaring conflict of interest and lack of corporate governance” in the management of parastatals. He noted that a growing number of government-appointed directors were sitting on more than one board, despite being full-time employees elsewhere, leading to what he described as poor performance and lack of accountability.

“It is unacceptable that the same faces dominate the boards of our parastatals while their performance leaves much to be desired,” Khumalo argued.

The seasoned legislator pointed out that some senior managers of corporate entities were also chairpersons of other parastatals, a situation he said was both untenable and unfair to ordinary citizens who are qualified but overlooked for these opportunities.

He further lamented that the calibre of individuals appointed to state-owned enterprises had deteriorated over the years, contributing to widespread mismanagement and lack of direction in critical institutions.

The motion also drew attention to financial assistance provided by the African Development Bank (AfDB) for the transformation of the Public Enterprises Unit (PEU).

Khumalo insisted that such support should not be wasted but instead be channelled towards enforcing reforms that strengthen corporate governance.

The motion sets out several key resolutions for the Minister of Finance, Neal Rijkenberg, who also serves as chairperson of the Standing Committee on Public Enterprises (SCOPE):

No Double Appointments – No individual employed by a parastatal shall be allowed to serve on more than one board of directors. Government officials, however, may be appointed to no more than two statutory boards

Legislative Review – The Minister must urgently review and present to Parliament legislation governing the Public Enterprises Unit to reinforce its administrative and legislative role in managing state-owned enterprises

Implementation Timeline – The Minister has 60 working days to align parastatals in line with the resolution, to improve efficiency, corporate governance, and accountability

Repercussions for non-compliance – Failure to meet the timelines set may result in serious repercussions during the PEU’s annual budget deliberations

Khumalo emphasised that the reforms were not just about reshuffling seats but about restoring good governance and efficiency in public institutions that play a key role in the national economy.

“This motion is about accountability and ensuring that our parastatals work for the people, not just for a privileged few,” he said.
The debate over board appointments has long been a thorny issue in Eswatini’s governance.

Critics argue that recycling the same individuals across multiple boards stifles innovation and creates conflicts of interest, while also excluding a wider pool of qualified citizens from contributing to national development.

If adopted, Khumalo’s motion could signal a significant shift in how directors of state-owned enterprises were appointed, setting a new precedent for transparency and efficiency in public institutions.