ANTI CORRUPTION INVESTIGATES DECADES LONG CORRUPTION ON THREE RAILWAY PROJECTS
Eswatini Railways embroiled in decade-long Corruption Scandal: A deep dive into mismanagement and alleged fraud
Eswatini Railways, the state-owned backbone of the kingdom’s freight transport, faces mounting allegations of systemic corruption, financial mismanagement, and operational failures spanning over a decade. An investigative probe into three major projects conducted by the eSwatini Anti-Corruption Commission on the procurement of weighbridges, leasing of wagons, and acquisition of locomotives has unearthed a web of irregularities, raising urgent questions about accountability and governance in one of the nation's most critical institutions.
Background
eSwatini Railways, established in 1962, plays a pivotal role in connecting the landlocked nation to regional trade corridors, particularly for exporting sugar, coal, and timber via ports in Mozambique and South Africa. Despite its strategic importance, the company has long struggled with aging infrastructure and financial sustainability. Recent revelations, however, suggest deeper rot: millions of emalangeni may have been squandered or misappropriated in deals shrouded in secrecy.
In 2013, eSwatini Railways launched a project to install inline weighbridges at Nsoko and Mlawula, critical for accurately measuring coal and sugar cargoes. The purpose of installing an inline weighbridge at Mlawula was to assist eSwatini Railway to detect where their client sugar was being lost. Was it lost in their client’s warehouse and/or while being in possession of eSwatini Railways ready to be transported to Maputo through rail.
The installation of an inline weighbridge at Nsoko was to weigh the coal to help eSwatini Railway charge their client. The tender was awarded to South Africa’s CSC Industrial (Pty) Ltd but the project was plagued by red flags from the outset. Despite a R6 million investment, the Mlawula weighbridge failed to generate receipts for billing the eSwatini Sugar Association.
A second device was installed after the first was allegedly struck by lightning—a claim met with skepticism. Investigators found no evidence of lightning damage reports. "Its a cesspit of corruption that has the entire organisation under focus from the Anti Corruption. There is panic within the institution as it is getting clear that something is not right," said a senior executive source within the management of the organisation. At Nsoko, confusion reigns. While some officials insist the weighbridge was installed, others deny its existence. Payments were traced, but invoices and physical proof are absent.
eSwatini Railway's Sive Manana
Project 2: The Suspicious Wagons Lease (Post-2016)
After seizing 45 wagons from defunct miner Salgaocar Swaziland, eSwatini Railways leased them to South Africa’s African Rail (Pty) Ltd, which sub-leased them to Namibia. While lease payments were made, investigators flagged erratic amounts—ranging from E500,000 to E1 million monthly—without contractual justification.
"Eswatini Railways instituted legal proceedings which was ruled in favour of it hence they seized and forfeiture 45 Salgaocar wagons and they became Eswatini Railways property. A business was found for them and they were leased to Africa Rails (Pty) Ltd a company in South Africa which later leased the wagons to Namibia. Allegations were to the effect that Eswatini Railways did not receive the money from the leased wagons, they suspected that it was going to some of the officials’ pockets. Investigations have revealed that Eswatini Railways did receive money for leasing the wagons however the money varied it was not uniform," A source in the know told this publication.
Project 3: The Costly Locomotive Debacle (2022–2023)
To mark its 50th anniversary, eSwatini Railways procured four locomotives and 75 wagons from Theo Rolling’s, a South African supplier doubling as financier. A currency switch from USD to ZAR led to dual contracts—one with Theo Rolling’s and another with a bank—forcing the company to service both simultaneously.
Information obtained from the engagement of Eswatini Railways officials was to the effect that the company they procured the locomotives from also provided a loan to eSwatini Railways. Agreement was signed with Theo Rolling’s for the purchase of the locomotives and wagons through their subsidiary company and it was agreed that payments will be made in US Dollars.
After making several payments eSwatini Railways discovered that it was becoming too expensive for them and decided to approach the bank to pay through rands. They signed an agreement with the bank only to find that they had an existing contract with Theo Rolling’s the initial company which provided them with the loan.
On the other hand they had entered into an agreement with the bank which caused them to service two agreements on the same subject matter which was then very costly. On Monday March 17 eSwatini Railway was contacted for comments and given ample time to respond to this story. The company's Corporate Communications Manager Sive Manana was sent a questionnaire on his official company email as well as his social media handles.
He had promised to respond to this publication but at the time of publishing, six days later, he had not responded.
NB: Next week we reveal more details on other alleged corruption within the organisation.