BE SEEKS SAMMY, SAMORA’S IMPRISONMENT

MBABANE – Business Eswatini (BE) wants Peter ‘Samora’ Simelane and Sammy Dlamini to be sent to jail for holding the Eswatini Med AGM despite an order interdicting the meeting.

BE has launched an urgent legal challenge, seeking to imprison Peter Simelane, the suspended Chief Executive Officer (CEO) of Eswatini Med, and Samuel Sammy Dlamini, the removed Board Chairman, for allegedly defying a High Court order. The application, filed with the High Court yesterday, accuses the executives of ‘wilful, mala fide contempt’ following their decision to proceed with the Eswatini Med Annual General Meeting (AGM) despite a court injunction. The legal action stems from a court order issued by Justice Ticheme Dlamini on March 25, 2025, which prohibited Eswatini Med from holding its AGM.

However, according to affidavits submitted by Musa Maseko, Acting CEO of BE, Peter and Sammy proceeded with the meeting on March 26, 2025, allegedly with the intention to remove Board members who were demanding accountability for public funds amid allegations of significant financial mismanagement within the medical scheme. Kenneth Simelane, the attorney representing BE, certified the matter’s urgency, arguing that contempt applications inherently demand immediate attention due to their impact on the Judiciary and the rule of law.

According to the filed papers, Sammy and Peter allegedly ‘engaged in conduct that is a direct attack on a sitting judge, besmirching his character and credibility, without following proper process’. Furthermore, the legal documents assert that the executives’ actions not only flout company legislation and governance provisions, but also undermine the authority of the High Court. The application contends that the AGM and its resolutions must be addressed without delay to prevent further damage to public trust and the healthcare system.

BE is seeking several orders from the High Court, including: Enjoining the attorney general and the national commissioner of police to the proceedings, recognising their direct interest in upholding the rule of law. Another prayer by BE for an order declaring Peter and Sammy to be in contempt of the court order issued on March 25, 2025 and that they be imprisoned for 30 days. Alternatively, BE wants them to be required to show cause why they should not be imprisoned.

BE further wants the court to declare the resolutions passed at the March 26, 2025 AGM null and void, as well as ordering the duo to pay the costs of the application on a punitive scale. BE argued in its application that Peter and Dlamini have been running Eswatini Med ‘as their alter ego’, acting contrary to company legislation and the organisation’s Memorandum of Incorporation (MoI) or Articles of Association. The application also refers to ‘multimillion-pound looting’ and a ‘wild cat hijacking’ of Eswatini Med, which has reportedly attracted significant media attention and public concern.

Allegations

The veracity of these allegations is still to be tested in court and the respondents are still to file their answering papers. Acting Chief Executive Officer (CEO) of BE, Maseko, in his founding affidavit, emphasises that the Kingdom of Eswatini is governed by a Constitution based on the rule of law.
He argues that the executives’ actions represent a ‘common law criminal offence of contempt of the honourable court’. The High Court of Eswatini is deemed to have jurisdiction over the matter as the cause of action arose within its area.

After Judge Ticheme issued the interim order interdicting the AGM, the respondents filed a notice containing 13 grounds of appeal in the Supreme Court. Judge Ticheme’s interim order specifically interdicted Peter and Board Sammy from unilaterally calling shareholder meetings without proper Board approval, and from interfering with ongoing investigations and disciplinary processes.

The order also mandated that Eswatini Medical Aid Fund’s (Eswatini Med) share registry be updated in accordance with its Articles of Association before any future shareholders’ meetings are held. BE, a founding shareholder of Eswatini Med, argued that the meeting called by Peter was unlawful, citing that it was not sanctioned by the Board of Directors, and was called in violation of the fund’s governing documents. Maseko’s affidavit further alleged that Peter, who is currently suspended, lacked the authority to convene such a meeting.

“The purported AGM called by the first respondent as the Principal Officer of the third respondent through the notice, is unlawful and or grossly irregular,” Maseko stated in his affidavit. “The calling of the meeting is a unilateral decision of the principal officer, yet the principal officer has got no right or authority to call such a meeting in terms of the Articles of Association.” The application highlighted concerns about the fund’s financial management, with allegations of misused public funds and a failure to produce audited financial statements. BE also accused Peter of attempting to unlawfully dismiss a Board member and sabotaging Board resolutions related to his suspension.

Maseko further alleged that Sammy had refused to convene Board meetings to address the misconduct allegations and had defied Board instructions to suspend Peter, suggesting a ‘collusion’ between the two.“After the defiance of the February 28, resolution by the second respondent, and his failure or refusal to call a meeting, the directors who issued the petition convened the meeting on March 18, 2025 and took a number of resolutions, which speaks to the suspension of the 1st respondent and appointment of the interim chair, the suspension or removal of the second respondent, a declaration of the Annual General Meeting scheduled for March 26, 2025 and null and void, an addition of the issuance of unauthorised press statements to the issues of misconduct, and the removal of the first respondent as a signatory in the bank account, among others,” Maseko said.

BE emphasised the urgency of the matter, stating that the alleged irregularities were detrimental to the fund’s members and threatened its financial stability. The matter will be heard on April 8, 2025.

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