MP’S COMPANY’S E6.2M FROZEN THROUGH POCA

MBABANE - The State has restrain, through POCA, a sum of E6.2 million belonging to a company in which Mftongwaneni MP Roy Fanourakis is reportedly a director.

The company is suspected of tax evasion and money laundering as monies from outside the country would be allegedly deposited into its bank accounts and transferred to various individuals in different parts of the world.  A large amount of money was paid to well-known arms manufactures and this raised concerns. This was also allegedly coupled with payments made to various service providers in the United Kingdom (UK). Strange payments were allegedly made to UK customs, as well as refunds from UK State Treasury. An analysis of cross-border transactions reflected that since 2013, the bank account of Unionlet (Proprietary) Limited, received E203 million through accounts held with First National Bank (FNB) Eswatini.

Investigations

Investigations by Central Bank of Eswatini (CBE), Eswatini Revenue Service (ERS) and the Royal Eswatini Police Service, also allegedly unearthed that the monies were received from Kuwait and unknown sources in various parts of the globe. Some of the deposited funds, according to the investigations, were disposed of through swift payments in the name of Prime Take Limited, Jalu, Stackhouse Poland Musafawi Exhibition and Accuracy International, a company which deals in the manufacturing of firearms. These are allegations whose veracity is yet to be tested in court. MP Fanourakis is a Director of Unionlet (Proprietary) Limited, together with Mark Ranger, who is a British national. The application to preserve the money which is being kept in different bank accounts was made in terms of the Prevention of Organised Crimes (POCA) Act, after intense investigations into the operations of the company.

In the preservation application, Head of the Asset Forfeiture Unit in the Office of the Director of Public Prosecutions (DPP), Elsie Matsebula, submitted that an affidavit from the CBE and accompanying documents relating the events and narration of the financial transactions by the company, gave rise to the suspicion of tax evasion, as well as money laundering. She told the court that an affidavit prepared by ERS narrating the history of the tax issues of the company presented a non-trading status, while it was receiving funds through its various bank accounts.  Matsebula highlighted that the company was registered as a general dealer business in aviation equipment and opened bank accounts with FNB and later Nedbank Eswatini. “These bank accounts received and transferred foreign currency reflected as financial trade conduct by the company,” said Matsebula.

Transactions

According to Matsebula, in respect of the case at hand, the CBE noted peculiar transactions regarding the first respondent (Unionlet) during the monitoring of foreign currency transactions through the Cross-Border Foreign Exchange Monitoring System. She said this necessitated that more information pertaining to the business transactions of the company with FNB be obtained. Matsebula narrated to the court that the CBE then received a report from FNB Eswatini and Nedbank Eswatini, to the effect that they had facilitated transactions on behalf of the company.  “The bank noted the peculiarity of the said transactions by the first respondent (Unionlet) in that it consisted of compensation of employees including migrant workers and that the transactions involved high amounts.

This led to the Central Bank of Eswatini calling for information relating to the core business of the first respondent and business operations as well as summary of the account activity.”  Matsebula submitted that FNB Eswatini provided the statements and company documents of the first respondent, as well as information to the effect that a number of foreign currency accounts were held with Nedbank Eswatini. The bank, according to Matsebula, conducted investigations and noted that the company was in merchanting business trading in the sale of goods and services and that it was in possession of a general dealer licence in specialised field of trade and aviation. “The investigations by the Central Bank of Eswatini further revealed that there are two companies that are linked to the transactions; one based in the United Kingdom and a local one both using the name Uniolet with a common director being Ranger,” said Matsebula who is also a principal Crown counsel.

She said the CBE analysed the accounts of the company and noted that it received amounts flowing in an out of the country.  Matsebula averred that most of the out-payments were noted to be inconsistent with the claimed business of merchanting but were made to individuals who appeared to be Ranger’s relatives.   Matsebula again highlighted to the court that payments were made to arms manufactures. She told the court that while in the process of monitoring and analysing the transaction, the CBE received a request for the authorisation to transfer funds held by FNB Eswatini on behalf of the company to Ranger’s UK accounts.

According Matsebula, the reasons were that FNB Eswatini had terminated the relationship with the company and they had directed it (Unionlet) to furnish them with local bank accounts to transfer all funds in their possession but they (FNB) received instruction to transfer the funds to the UK accounts belonging to Ranger. “The Central Bank of Eswatini refused to grant the authorisation based on the reason that it would be a violation of the Exchange Control Order.

Shareholder

“A company is only permitted to transfer funds to a shareholder, which stands as dividends or equity on liquidation. It was ordered that the funds be placed in a suspense account until such time that the bank was furnished with a local account,” said Matsebula. She said what was peculiar was that the company failed to submit audited financial statements that were requested by the CBE. “An analysis by the Central Bank of the monies coming into all the FNB accounts from outside the country was done. This analysis revealed that all the bank accounts received a combined total of GBP6 306 863.16, which when converted to Emalangeni is E11 370 389.81. “Additionally, all the bank accounts received a combined total of Euros 6 430 937.59, which when converted to Emalangeni is E15 182 210.96. “Again, all bank accounts received a combined total of US$975 230.29, which when converted to Emalangeni is E15 182 210.96,” said Matsebula. The order to place a restrain on monies belonging to the company was issued by Acting High Court Judge Thami Dlamini.

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