Mbabane – The Investor Relations Committee (IRC) feel the report’s failure to adequately address the role of critical directors is concerning which then renders the report suspicious.
Fundamentally, the IRC feels that the report appears to have diverted attention from the main suspects.
The Investor Relations Committee (IRC) convened on August 6, 2024 to review the Ecsponent Eswatini Forensic Investigation report, which was presented to Parliament by the Honourable Minister of Finance August 1, 2024.
This Investigation was commissioned by the Central Bank of Eswatini (CBE)and conducted by Cliffe Dekker Hofmeyr Inc (CDH)
This forensic Investigation was initiated at the request of the Investors who suffered financial losses to Ecsponent Eswatini.
The investors successfully lobbied Members of Parliament to commission the Investigation via a parliamentary Resolution after encountering difficulties in garnering attention from the Government and the Financial Services Regulatory Authority (FSRA).
The IRC reinstates that the CDH report is preliminary and incomplete, as noted in CDH’s own qualifications and limitations outlined on page 19- 21 of the report.
“Critical resources and information necessary for a thorough investigation were not accessed, leading to an incomplete understanding of the fraud and accountability issues. Notably, the omission of interviews with key individual undermines the report’s comprehensiveness. Evidence presented to CDH by ESW management substantiate the critical roles these individuals played.”
Furthermore, the CDH interviewed the key person only once and did not subject their preliminary findings to a validation process.
“The report excludes significant submissions from both investors and ESW management which are crucial for understanding the fraud and determining accountability. ongoing legal actions will ensure that this information is presented in court, where it will be rigorously tested.”
Paramountly, the IRC explained that the report contained factual inaccuracies that must be corrected in the final version, incorporating recommendations for additional investigation.
In a related development, Status Capital Building Society held its Annual General Meeting (AGM) on July 31, 2023. Notably, two individuals of interest to the Ecsponent Investors were present. Following this, High Court proceedings prevented their departure from the country (Swaziland).
Due to delay in the CBE -led investigation, the IRC, in collaboration with ESWIG management, undertook its forensic investigation into Ecsponent Eswatini. This investigation, covering bank transactions from 2024 to 2022, revealed a complex network of transactions involving over 20 companies in Eswatini and South Africa.
The findings disclosed substantial evidence of suspicious transactions and money laundering activities concealed through elaborate financial manoeuvres. The investigation also identified key individuals involved in these fraudulent activities, including the FSRA, its former CEO Sandile Dlamini and various RSA- based directors.
Furthermore, the IRC’s investigation explored the transition of Ecsponent Eswatini to ESWIG and examined how about E70 Million was raised from Eswatini under the new ownership, focusing on the utilisation of these funds. When the CBS – initiated forensic investigation commenced in November 2023, the IRC’s own investigation through ESWIG Had already concluded. Subsequently, the Investors, supported by the IRC and ESW, initiated legal proceedings in December 2023 against the main suspects.
These legal actions are based on substantial evidence indicating their culpability, which will be tested in a court of law in Eswatini.
Following the appointment of CDH by the CBS, the IRC, in its capacity as investors and through ESWIG and Getbucks Management, provided comprehensive submissions to the process. In light of the CDH report released to parliament on August 1, 2024.
The IRC consequently highlighted what it deemed as a way forward subject to the forensic report.
“The legal proceedings initiated by the investors and the IRC are independent of the CDH forensic process. The main individuals implicated in the misappropriation of Eswatini funds, despite being inadequately addressed by the CDH report, will face accountability through these legal actions.” “All allegations have been made in sworn affidavits before the Courts of Eswatini. These actors will be expedited to ensure parties are held accountable and subjected to cross- examination.”
In conclusion, the IRC reassured the public, especially the Ecsponent and ESW investors, that the CDH process is overseen by the Parliament.
“The report will be debated in the House f Assembly, where MPs, aware of the hardship faced by the Emaswati due to fraudulent activities, will scrutinise it thoroughly. We trust that the MPs will address the issues effectively. The IRC will also seek a meeting with the speaker of the House of Assembly to present additional critical information omitted from the CDH report.
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