By Ntokozo Nkambule
The Minister of Labour & Social Security Phila Buthelezi says the delay in converting the Eswatini National Provident Fund (ENPF) into a Pensions Fund is due to mandatory due diligence.
The Minister was speaking during ENPF’s 5th Stakeholder Forum held at the Happy Valley Hotel.
“The conversion of ENPF to a Pensions Fund is currently being delayed by due diligence as there are concerns over the sustainability of the Fund once it is converted. We must appreciate that this is not something that can be implemented overnight, in actual fact, a number of stakeholders have expressed concerns and resistance. We have received feedback from some of the ENPF members saying they are opposed to the conversion because of a number of implications.”
He said as tedious as the process is, it is important that due diligence is followed to ensure that everything goes right.
Buthelezi further mentioned that as it stands there are two Bills before Cabinet regarding the conversion.
He said one Bill is comprised of civil servants and the other without civil servants, and a decision will be made on which Bill is chosen.
The Minister noted that a decision can be taken anytime and after the decision is made the Bill will then be presented to parliament.
Present also during the stakeholders’ forum was the Director General of Zambia National Pension Scheme Authority Mr. Muyangwa Muyangwa who spoke on the experience of converting from a Provident Fund to a Pension Scheme.
Muyangwa acknowledged the challenges of undertaking such an exercise, stating that resistance normally comes from all corners, such as members, political corners, and other stakeholders.
He, however, noted that the conversion even though fraught with challenges was a necessity they had to undertake. He said in their case one of the biggest challenges they faced was concerns about sustainability, which they have exceptionally delivered upon.