Deny Swaziland bailout loan: Cosatu

The regime of Swaziland's King Mswati III cannot be entrusted with the loan meant to rescue the country, Cosatu said on Friday.

"It is the ruling Swazi regime that plunged the whole country into the mess it is facing," Congress of SA Trade Unions (Cosatu) international relations secretary Bongani Masuku said in a statement.

"This is not a natural disaster, but one made in Lobamba [the country's traditional and legislative capital] by a few royal elites who have milked the country dry from years of extravagance, corruption, parasitism and poor management.

"Therefore, these same culprits cannot be entrusted with managing the loan meant to rescue the country from the perpetual crisis it is currently facing," he said.

On Thursday, the South African government said it had received a request for a loan, but would not confirm reports that the amount was R10 billion.

Swaziland is the continent's last absolute monarchy. Mswati has been widely accused of repressing human rights, and harassing and jailing pro-democracy activists.

The International Monetary Fund reportedly said Swaziland has a budget deficit of 14.3 percent of GDP with an economy that is "stuck in the doldrums".

"Any consideration of a bail-out must be linked to the demand for a new and democratic government as well articulated by the people of Swaziland themselves in their various organisations and forums," said Masuku.

The Swazi regime had to take responsibility and answer to its people, instead of being bailed out.

"Failure to do so will result in the unintended consequence of bolstering the confidence of those responsible for looting the people’s coffers with impunity," he said.

The Catholic Bishops of Southern Africa also expressed concern at the South African government's consideration of the loan.

"We believe that the Swaziland government must abandon or at least reform the 'Tinkhundla' system of governance, of royal favour and alliance which is a breeding place for corruption and greed," spokesman Cardinal Wilfrid Napier said in a statement.

"Monies intended for alleviating the people's suffering are diverted to support the lavish lifestyle of the monarchy," he said.

The bishops -- from Botswana, Swaziland and South Africa -- called on the South African government to make the loan conditional.

They said these conditions should include the implementation and recognition of the Universal Declaration of Human Rights, the revoking of a state of emergency declared by royal decree in 1973, and Mswati entering into dialogue to facilitate democracy.

The conditions should also include the establishment of a democratic process for writing a new constitution, the amendment of the existing constitution to reinstate human rights and a prohibition on the use of any of the bail-out money to fund the monarchy.