Donor, investment funds dwindle over 'rule of law'

Swaziland's non-governmental organisations (NGOs), which in many instances spearhead social welfare efforts in the country, say the kingdom's unflattering international reputation is an obstacle to fundraising. "The volume of donor funding, upon which NGOs were heavily dependent, has dwindled substantially due to problems experienced with the 'rule of law' crisis in the country," said Dumisani Mnisi, chairperson of the Coordinating Assembly of Non-governmental organisations. The CEO of a Manzini-based NGO, who spoke to IRIN on condition of anonymity, said: "There is a similarity between the drop in foreign direct investment experienced this past year by the business community, and the greater challenge to bring donor funds to the kingdom." The source said that just as business people were wary of putting money into a country where their investments were unprotected by a compromised court system, whose decisions could be overturned when they interfered with royal interests or prerogatives, international donors also demanded accountability from a country they contributed to. "A donor has no shortage of places in the world where monetary assistance is welcome. They want to be assured that their contributions are accounted for and, if there are problems in a country, they want to know an NGO has recourse to the courts," the source noted. Late last year, former prime minister Sibusiso Dlamini, a palace appointee, directed that government would not honour two Court of Appeal rulings. One judgment would have jailed the Commissioner of Police for contempt of court, and the other found that King Mswati had no power in law to decree laws without input from parliament. Dlamini chastised the Appeal Court for a lack of judicial integrity, and accused them of following foreign ideologies. The six-member appeal court bench, all judges on loan from South Africa, resigned in protest. Swaziland has been without its highest court since. High Court justices that had delivered rulings disliked by government have been replaced. The Central Bank of Swaziland, the Swaziland Chamber of Commerce and Industry, and the Swaziland Investment Promotion Authority (SIPA) noted a decline in foreign direct investment during 2003. They attribute the decline to investors' concern about the "rule of law" crisis. "The issue of the rule of law remains critical, as it is threatening the country's economic position," said SIPA's CEO, Bheki Dlamini. NGOs concerned about dwindling contributions from overseas cite Minister of Enterprise and Employment Lutfo Dlamini as an example of how charities in Swaziland can be manipulated to benefit government officials and people with royal connections. Despite assertions from the Ministry of Health that there was no money left in a special fund set up to finance medical treatment in South Africa for indigent Swazi children, the Times of Swaziland reported that R80,000 (US $12,500) in medical bills incurred by Dlamini in South Africa were paid out of the fund. Angus McLeod, a Manzini businessman who went to Britain earlier this year to raise funds for the Swaziland Action Group Against Abuse (SWAGAA), which provides counselling, medical and legal assistance to abuse victims, told IRIN: "I encountered resistance from potential donors, who wondered if their contributions would be better utilised somewhere else. They had many questions about how the Swazi government uses its money." McLeod succeeded in obtaining contributions by stressing the valuable work of the anti-abuse NGO. Another official with SWAGAA said: "Orphans and vulnerable children should not have to suffer because of government corruption or irresponsibility. Swaziland is not a democracy where taxpayers and ordinary people have a say in how their money is spent. The key is to get around this is by assuring donors that their money will go directly to a credible NGO, and all spending will be documented for their inspection."