Recently it was announced on SBC television that the government of Seychelles begged for USD 3.6 million and the government of South Africa has obliged, by giving the money to Seychelles as an unconditional grant. The reason for the original request from the African Renaissance And International Cooperation Fund was ostensibly to purchase food from South Africa for the people of Seychelles; a noble and reasonable request by all means. However, the South African High Commissioner, Mr. Madumane Matabane, has let it slipped that it has been decided that the government of Seychelles may do as it pleases with the money. This sounds like music to the government’s ears as Minister Pillay quickly added that the money was requested to buy goods from South Africa but since the country is not imposing conditions it will be used by the Ministry of Finance according to government’s priorities and accounted for if necessary.
The generous offer by the South African government to the SPPF government to do as it pleases with the 3.6 million dollars may prove to be just another 3.6 million dollar colossal mistake. Remember the Joel Morgan’s 4.5 million dollar mishap? Oops! Was not supposed to mention this. However, the High Commissioner stated that his government was sure that the money would not be wasted as has happened in the case of certain leaders and countries.
At a time when food prices worldwide has gone through the roofs, one would have thought that the most sensible use for the USD 3.6 million would have been to subsidise rice, a staple used by most Seychellois families everyday. Instead, the SPPF government has changed its mind, as normally does, and has decided to spend the money as it so pleases. It is hoped that the money would not be used to pay yet another SPPF burdensome loan taken in the name of the people of Seychelles but not accountable for until today.
The government is required by law to deposit all of its revenues in the Consolidated Fund. In the case of the USD 3.6 million there has been no mention that this would be the case. In fact, it is quite sinister that such a relatively large sum of money in foreign exchange has not been deposited in the Consolidated Fund as is required by law. Such practice is becoming much too common now as the USD 30 million Lehman’s Brothers junk bonds suffered a similar fate not too long ago. In fact, the Minister of Finance, Mr. Danny Faure, told the National Assembly at the time, that the money would be used to clear the Pipeline at Central Bank. However, this was, sadly, not the case and until today the money has not been accounted for. The opinion of Mr. Madumane Matabane that the SPPF government is “responsible and democratic,” and worthy of South African trust caused a few eye brows to be raised. His perception is arguably a mere fallacy, more imaginary than real.