Times Of Swaziland: AS ECSPONENT INVESTIGATIONS INTESIFY: ORDER TO PROBE ACCOUNTS OF ‘THE HIGH AND MIGHTY’

AS ECSPONENT INVESTIGATIONS INTESIFY: ORDER TO PROBE ACCOUNTS OF ‘THE HIGH AND
MIGHTY’
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Kwanele Dlamini on 16/10/2024 16:07:00


MBABANE – There is a new twist in the investigation into the disappearance of
the E335 240 000 that was invested by over 1 000 emaSwati and institutions.
The money is part of the E406 million that was invested in Ecsponent Swaziland
(Pty) Ltd, now Eswatini Investment Group (ESWIG) (Pty) Ltd. It was previously
known as Escalator Capital. In the latest development, the police have obtained
an order to investigate over five bank accounts of ‘the high and mighty’. 
Among the bank accounts that are now under investigation, are those that belong
to a high-ranking politician, prominent businesspeople, lawyers and a money
lending organisation.
The names of the individuals and organisation, whose bank accounts are being
looked into, cannot be named as the application thereto was made ex parte
(without their knowledge) and the investigations are still ongoing. As per the
police investigations, it is suspected that the organisation, whose bank account
is among the ones under investigation, was purportedly used as a conduit to
transfer the monies deposited by the investors to different accounts. Some of
the monies that are reflected in the statement of the organisation are large
amounts of money ranging from E20 million, being transferred to the accounts of
some of the account holders.The account holders include high-ranking officials
and businesspeople.
Deposited
The order to investigate the bank accounts, where large amounts of monies were
deposited, was granted by Mbabane Magistrate Sifiso Vialakati. Magistrate
Vilakati granted the order after investigators from the Commercial Crimes and
Fraud Unit applied for an order in terms of Section 49 of the Criminal Procedure
and Evidence Act of 1938. Section 49 of the Act provides that, if upon an
application to the court by a police officer the court is satisfied that any
books of account, document, records or thing which is in the possession of any
person, including a company, bank or other financial institution is necessarily
required in connection with any criminal investigation by the police, the court
shall make an order requiring that person, company, bank or financial
institution to produce such book, document, records or thing to the police
subject to such conditions as the court may impose. It also stipulates that, any
person who without reasonable excuse, proof of which shall be on him, refuses or
fails to comply with an order of the court under subsection (1) shall be guilty
of an offence and liable on conviction to a fine not exceeding E10 000 or to
imprisonment not exceeding five years or to both.
Lured
The investigation of these bank accounts comes after some of the investors
recorded statements with the police, narrating how they were lured to deposit
their monies, with the promise of better returns. The investigators, according
to sources, will also likely use the recent Escponent report that was tabled in
Parliament in their investigation. Notably, a number of the investors who
invested their hard-earned cash are pensioners.  About 100 of them are reported
to have died due to depression and stress-related illnesses, which purportedly
beset them after the disappearance of their investments.
The investigation into the activities in the bank accounts in question comes at
a time when the investors instituted proceedings at the High Court, to recover
the lost investments.
They were recently in court on a verification exercise before Judge Khontaphi
Manzini, to prove that they hired the office of S.V. Mdladla and Associates to
represent them in the matter, in which they are demanding the amount of E340
million from the Financial Services Regulatory Authority (FSRA).
Licence
FSRA, which granted Ecsponent the licence to operate in the country, had
disputed that the investors had engaged the law firm to represent them in the
matter. FSRA Chief Executive Officer (CEO) Ncamiso Ntshalintshali alleged that
the over E405 million in Ecsponent was allegedly not invested in any legitimate
product to earn returns. He alleged that Escponent operated a money laundering
pyramid scheme. He told the court that ESWIG or Ecsponent Eswatini (Pty) Ltd,
and GetBucks Eswatini (Pty) Ltd, are the culprits in the disappearance of money.
Further, FSRA wants Ndumiso Mamba, Terence Gregory, Mlungisi Lukhele, Dirk van
der Merwe and Gregory Manyere, who were allegedly responsible for operations of
Ecsponent Eswatini (Pty) Ltd, to be brought to court.According to FSRA, these
individuals allegedly benefitted from the deposits made by the investors.The
deposits totalled E406 932 005.55.
By way of third-party proceedings, the FSRA wants the individuals to be brought
to court through the third-party procedure, which will provide for the
determination of any question or issue between the parties and third parties, if
the same question will arise or has arisen.
Ntshalintshali informed the court that the directors of ESWIG were paid
directors’ fees, emoluments and commissions between 2015 and 2022.Meanwhile
ESWIG told the court that an amount of E335 240 000 was transferred to the
Republic of South Africa, leaving the local investors high and dry. ESWIG
accused former FSRA CEO Sandile Dlamini of being involved in the purportedly
fraudulent transfer. ESWIG is currently making efforts to recover the
transferred investments. In its combined summons, ESWIG informed the court that
FSRA, in conjunction with financial service providers, by law, promotes
awareness of the benefits and risks associated with different kinds of
investments.“...take measures for the better protection of stakeholders of
financial services; make rules and issue guidance notes and codes of conduct
governing the conduct of the business of financial service providers; carry out
investigations and take measures to suppress illegal, dishonourable and improper
practices, market abuse and financial fraud in relation to any activity in the
financial service sector,” submitted ESWIG.
Regulate
Others are to regulate, monitor and supervise the conduct of the business
activities of financial service providers; exercise and perform other powers,
authorities and duties as may be conferred or imposed upon it by or under the
FSRA Act or any other Act; perform all such other acts as may by incidental or
conducive to the attainment of the objects of the authority or the exercise of
its powers under the FSRA Act. ESWIG also told the court that Section 6 of the
FSRA Act provides that the FSRA shall have such powers as are necessary to
enable it to effectively discharge its functions.
The investment group further told the court that Section 8 of the Act provides
for the responsibilities and duties of the CEO, which include that the CEO must
devote his professional services to the FSRA.According to Section 8, submitted
ESWIG, the CEO may not without written approval of the relevant minister
supplement his salary from any service other than the authority. The matter is
pending in court.