ESWIG BRINGS HOPE

Sir,

As a loyal reader of your widely read publication, I have been closely following the Ecsponent Eswatini Limited issue with keen interest. I pity the people who invested in this scheme, some of whom are pensioners, elderly and sickly. However, I have some hope after reading in your esteemed newspaper that a new company, ESW Investment Group (ESWIG), has been formed to help these investors recoup, at least, their capital investments.

Hopeful

I even felt more hopeful when ESWIG organised two meetings with the investors. This brought an element of transparency in the whole issue as investors were able to find out what happened to their investments. Likewise, ESWIG disclosed its strategies to repay the investors their investments. I pray that the new company succeeds in whatever it intends to do to help these desperate investors. As it stands, it would seem that the investors made a grave mistake by not reading the investment prospectus. A prospectus outlines the investment instruments, returns and risks thereof, to mention but a few. If they had read the prospectus, I doubt that a majority of them would have proceeded to invest.

Committed

On the other hand, the company allegedly committed a fraudulent act by not availing the prospectus and by its failure to pay the investors what was due to them. It has been reported that Ecsponent only issued investment certificates and never availed the prospectus. I agree with ESWIG management that the new company should not be liquidated because that would be disaster for the 1 500 emaSwati who invested their hard-earned cash. Investors will not even recover a cent in the event the company ceased operations. I also am aligned with the resolutions that were made and adopted during both meetings held at Esibayeni Lodge.

The resolutions that the payment of dividends be discontinued by the end in December 2021, and a committee be elected to work with management, are acceptable. The committee will then appoint Board members of the companies earmarked to generate money to repay the investors. The resolution that investors desist from instituting lawsuits against the company is key because that will lead to its liquidation. Once the company is liquidated, the investors will get nothing and further have no means to pursue the matter. It will be a closed book. If the resolutions adopted during the meetings are anything to go by, I can see light at the end of the tunnel.

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