REFUND TALKS: DAVE MEETS NEAL, GOVERNOR OVER E340M ECSPONENT MONIES

MBABANE – After spending money on forensic audits and courts, the parties relevant in the E340 million lost in Ecsponent are now working on prospects of helping the over 1 000 emaSwati get refunded their investments.

The Times SUNDAY has gathered that government, in particular the Ministry of Finance and relevant stakeholders have been advised to discuss prospects of helping the affected emaSwati get refunded. Following the advice, it has been gathered that there are behind-the-scenes engagements being held with the relevant parties to discuss a way forward on how the money can be recovered to ensure that the investors are refunded.

The latest engagement is said to have taken place last Wednesday and involved Minister of Finance, Neal Rijkenberg and Central Bank of Eswatini (CBE) Governor Dr Phil Mnisi.
Interestingly, South African businessman, Dave van Niekerk, who has featured prominently in the whole Ecsponent saga is said to have been part of the engagements. The Times SUNDAY received information to the effect that the businessman landed in Eswatini on Wednesday morning, through the King Mswati III International Airport at Sikhuphe and went on to join the engagements with the minister and the governor. Sources also claimed that the businessman had actually visited the country three weeks ago and met other relevant stakeholders. The latest visit by the businessman on Wednesday has been a subject of debate in certain quarters, with some asking why he is allowed to come in and out of the country.

His visits to the country
However, it has been confirmed that his visits to the country are not unlawful. This publication is in possession of a letter written by the chief immigration officer dated September 17, 2024, which clarifies that his entry into the Kingdom of Eswatini is not to be tampered with. The letter reads, “This serves to inform you and your family hindrance-free entrance into the Kingdom of Eswatini. Our office notes with regret that in your previous attempts to visit and enter the Kingdom of Eswatini, you encountered challenges from our officials.”
sincere apologies

It goes on to say, “Our office hereby extends its sincere apologies for the challenges you experienced in your last attempt to visit the kingdom. By this communication, our office would like to assure you and your family a safe and hindrance-free visit to the kingdom in the near future.”Regarding the behind-the-scenes engagements, the minister of finance clarified that the aim was not to find money somewhere to pay the investors, but rather to find ways of recovering the lost investments. The minister informed this publication that there is a lot going on and there have been engagements with relevant stakeholders including the Financial Services Regulatory Authority (FSRA) to ascertain possibilities they can work with together to try and recover the money.

Recover investments
 “At the same time, the CBE and I are working and trying to do everything we can to get information that will possibly assist so that we can try to recover investments that were made. Obviously, we are doing it with CBE because it has good relationships and access to international systems where it can speak to other central banks and have assistance in those jurisdictions to assist in tracing where the money went. He said it is all about trying to get a clear picture which is different forensics that have been conducted and put together.
“We have had meetings with as many people as we can and some of them are investors who have been open to come see us and these meetings are helping to shed light on the matter so that we can see what we do about recovering as much money as possible.

That is the mandate and it is not a matter of trying to find money somewhere to pay the investors, but it is all about doing everything that we can to help them recover the money they invested and lost,” he said. The minister also confirmed the meeting with the South African businessman.Interestingly, the CBE distanced itself from the issue by saying that they are not aware of any engagements, either with government or any other relevant stakeholder, that are aimed at assisting affected individuals recoup their investment in Ecsponent (Eswatini) Limited.  

This publication had asked to know the veracity of the reports that there are engagements with stakeholders. The CBE had also been asked to state the day of the last engagement. In another questions, the CBE was asked to state what would happen in the event that the engagements become a success and how the investors would be paid. The Times SUNDAY asked to know whether the plan is to have the investors get their initial investments of same together with profits. In response, the CBE said, “We wish to reiterate that the bank is not aware of the engagements referred to, or any other initiatives aimed at assisting investors recoup their investment, whether in part or in full, from Ecsponent (Eswatini) Limited.”

Early this year, this publication reported that the frustrated investors had resolved to seek audience with His Majesty King Mswati III to intervene on their behalf. The resolution was taken during the Eswatini Investment Group’s (ESWIG) well-attended special general meeting at Mfanyana Hall in Manzini. The investors unanimously agreed that only an order from the King would provide a lasting solution to their painful ordeal.  The investors, a majority of whom are elderly and retired citizens, said audience with the King will allow them to relay the frustration they have gone through ever since their millions disappeared. However, they were advised that since the matter was in court, the legal process should be exhausted first.

Forensic investigation
The investors were also made aware that the ESWIG Board had conducted its own forensic investigation to establish what transpired and had initiated its legal claim against the FSRA and other parties, on the basis of its own forensic investigation. Recently, this publication published contents of the ESWIG forensic and it revealed an email chain which gave a clue of how external influence on financial and key investment decisions allegedly reigned supreme in the operations of Ecsponent Limited.

This report was compiled by a South African consultant known as JKD Consulting. It contains names of individuals and entities allegedly involved in the transactions. In the report, the consultant said it appeared that key investment decisions were made by ESW’s holding company, Ecsponent Limited. According to the report, the consultant was able to get hold of a bundle of emails by ESW management, which appeared to indicate the presence of external influences on the investments and other decisions. Copies of the emails are annexed in the report and one of them gives the impression that some persons of interests used their influence in the hiring of senior members of staff.

Negligence or criminality
Specifically, the forensic was to look into whether there was any negligence or criminality in how funds were received and or passed on to related parties and any other party.It was also to establish how the funds received were utilised, invested and or loaned and why they have not been paid or repaid. The report puts much focus on the funds relating to preference shares issued from March 2016 to November 2019, being preference share issue numbers 6 to 12. In terms of findings, the report said there was a prima facie view that the scheme was designed to induce participants to invest in a purported secured environment whereas the true intention, but that based on the findings made, it appears to be the contrary, and that was to divest the investors to benefit those who designed the scheme.

One of the recommendations made is that the original masterminds of the scheme need to be held accountable for the substantial losses. It was mentioned that from the onset, all adverts and prospectus issued misrepresented the true purpose of the funds and how they were to be invested. Since 2022, ESWIG has been doing all in its power to help the frustrated investors recover their money. This it did through the introduction of a turnaround strategy which was dubbed ‘Project White Knight’ and it encompassed the formation of a company registered in the name of the investors.

Alternative revenue
The company was announced as one that was purely an investment vehicle aimed at assisting them generate alternative revenue streams in order to recover their lost funds. Before that, the Ecsponent Eswatini Limited name was changed and the company was rebranded to ESWIG, while the Board was restructured and a new executive and management team was appointed. It was argued that the new executive and management team had the capability to implement a turnaround strategy in order to achieve the desired result, which was to ultimately establish ESWIG as a viable business entity based on sound governance practices.

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