Channel S Club's money transferred to Ultipro'

MBABANE - The Central Bank of Swaziland (CBS) has alleged that there appears to have been a withdrawal of a substantial amount from the Qhawe Mamba’s proposed savings Co-operative account and transferred to Ultipro.

This is one of the reasons the bank decided to freeze Mamba’s bank accounts.

Secretary to the Board of the Central Bank Swaziland, Mhlabuhlangene Phesheya Dlamini has filed the bank’s responding affidavit at the High Court and Mamba is yet to file his responses and the matter’s merits be argued.

Dlamini alleges that Mamba has interposed Ultimate Productions (PTY) Limited and Jouz Media (PTY) Limited in the transactions when in fact it is him hiding behind the corporate veil.

He alleged that Mamba had created a facade to enable him to engage in these activities where he is the ultimate benefactor.

"In effect the 1st respondent (Mamba) has created a pyramid scheme which takes deposits from the public. The said scheme is unauthorised as required in terms of the FIA (Financial Institutions Act). The 1st applicant has been the primary promoter of the scheme.

"He has misrepresented to the public that he is associated with such companies as SwaziMed in a bid to get more people to join his scheme," alleges Dlamini’s papers filed at the High Court.

Dlamini said in a supplementary affidavit they would set out in detail the grounds it would rely on for applying to pierce the corporate veil or for the court to disregard the corporate façade.

"As regard the bank’s powers to seize the accounts, it is respectfully submitted that generally, the bank has a mandate to safeguard the integrity of the financial system in the country and consequently to protect the public from the risk associated with schemes which are inimical to a sound financial structure, such as a pyramid," alleges Dlamini.

The bank is represented by lawyer Mangaliso Magagula while Lawyer Noel Mabuza appears for Mamba.

Dlamini alleges that Mamba was involved in receiving funds from the public and promising the depositors short term investments gains.

"The activities of the applicant of the applicant aforesaid justify the bank in its capacity as a regulator, seizure of the accounts in order to protect the public.

It is respectfully submitted that the bank has inherent powers to regulate, inter alia (from amongst other things), deposit-taking institutions save for those that are excluded by the FIA. The bank exercises its regulatory powers lawfully within the powers conferred to it by law," alleges Dlamini.

Lawyer Magagula has filed an application that they be allowed to file supplementary affidavit where some of the merits of the case will be contested in detail.

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