ENPF Board Stand-Off: 4 Federations Withdraw

Tensions within the Board of the Eswatini National Provident Fund (ENPF) have escalated, with four federations taking the unprecedented decision to suspend their participation from all Board activities, albeit temporarily.

The bodies are the employer and employee representatives, who together form the majority of the Board, which was appointed barely three months ago. The move was formally communicated in a joint public statement issued by Business Eswatini, the Federation of Eswatini Business Community (FESBC), the Trade Union Congress of Swaziland (TUCOSWA) and the Federation of Swaziland Trade Unions (FESWATU) yesterday.

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In their statement, the federations said they had raised unspecified governance matters with the Minister of Labour and Social Security Phila Buthelezi and have therefore, opted, “for the time being,” to hold their participation “in abeyance.” The concerns, they said, relate to the fund’s governance framework and internal controls and have been formally presented to the minister with the aim of reaching a mutually acceptable and sustainable resolution.

“In our view, these issues affect the overall effectiveness of the fund’s governance framework and the robustness of its internal controls. Given the ENPF’s role as a key pillar of the national social security system, we consider it our responsibility to ensure that such matters are addressed in a manner that strengthens, rather than diminishes, the confidence of members and contributing employers,” reads part of the statement.

“We have formally presented our concerns to the honourable minister for labour and social security with a view to facilitating a mutually acceptable and sustainable resolution. At this time, and in respect of that process, we are not in a position to comment publicly on the specific issues raised, save to note that we will, for the time being, hold our participation on the Board in abeyance,” reads another part.

The federations’ statement does not disclose the specific issues prompting this withdrawal, but insiders told this publication that the tensions stem from disagreements over the appointment of Inyatsi Construction CEO Derrick Shiba as ENPF Board Chairperson.

The legal crux of the chairpersonship debate revolves around a clause in the Eswatini National Provident Fund Order of 1974 that provides for “a person appointed by the minister responsible for local government.” The ministry referenced in the original statute no longer exists, creating interpretive challenges regarding which ministry currently holds the appointing authority and whether the appointee must be a government official.

READ MORE | PSPF Calls for Civil Servants’ Exclusion in ENPF Conversion

Those who question Shiba’s appointment argue that the provision has historically never been used to install a private-sector figure as chairperson, and that its interpretation in this instance may conflict with the spirit of the fund’s governance model, which is structured to give central influence to those who finance the fund: employers and employees.

Minister Buthelezi, however, has dismissed claims of irregularity. In an interview with this newspaper, he insisted that all appointments were fully compliant with the ENPF Order and said his office had not received any formal complaint related to the Board’s composition.

“I followed the law. If anyone among employer and employee representatives has questions, then the advice would be for them to get a lawyer who will explain and properly break down the law for them,” he said.

Friction

Another aspect of the dispute reportedly centres on the long-standing practice that the chairpersonship rotates between employer and employee representatives every term.

According to insiders, the friction intensified as some employer and employee groupings believed the chairmanship would return to employer federations this term, following its last tenure under TUCOSWA Secretary-General Mduduzi Gina. The announcement of a chairperson who represents neither employers nor employees is said to have caught them off guard.

The federations’ withdrawal now means that the Board, already formally announced but yet to fully convene, remains unable to begin its work. A meeting scheduled several weeks ago reportedly collapsed due to non-attendance by employer and employee representatives, who had instead sought a meeting with Minister Phila Buthelezi. His office later communicated that he was unavailable due to national commitments.

Several insiders described the situation as a “visible rift” within the fund’s governance, highlighting that unlike previous Boards, the newly appointed one has not yet been publicly presented alongside the Minister—a longstanding practice after each new term.

The timing of the tensions is also particularly sensitive as the ENPF is currently at the centre of national discussions about converting it into a compulsory National Pension Fund. The policy shift, already tabled before Parliament, could fundamentally reshape the country’s social security architecture, directly affecting all workers and employers. Insiders say there are fears that instability within the governance structure could erode public confidence during a moment when clarity and trust are essential.

“The fund cannot afford instability or mistrust at a time like this. The Board has a huge responsibility in steering discussions related to the proposed National Pension Fund model,” added insiders.

The new board, unveiled by Minister Buthelezi in September, is expected to serve a three-year term. Shiba has been appointed chairperson, with Business Eswatini CEO E. Nathi Dlamini designated as deputy chairperson. Other members include Labour Principal Secretary Makhosini Mndawe, Acting Labour Commissioner Kingdom Mamba, Business Eswatini representative Tokky Hou, FESBC representative Prince Themba Dlamini, and employee representatives Philasande Mthethwa, Phendulile Zikalala and Wonder Mkhonza. ENPF CEO Futhi Tembe serves as secretary to the Board.

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