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ECSPONENT SAGA: GOVT COMPLICIT

19/12/2022 08:13:00 Vusi Sibisi

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Even after 76 investors having died in the wake of the collapse of Ecsponent Eswatini Limited – along with approximately E430 million investments – on which they had bequeathed their future economic and financial wellbeing, government remains aloof, silent and insensitive to the cause of surviving investors, some now bedridden consequent to stress and concomitant health challenges owing to the disappearance of their investments, months after having undertaken to take the necessary steps to establish and appoint a forensic audit.

But before knuckling down to this subject matter, may I briefly detour to the unsuccessful bail application of the two Members of Parliament (MPs) that has shaken this country to the rafters. The one takeaway from High Court Judge Justice Mumcy Dlamini’s judgment denying bail, for the umpteenth time, to the two MPs, Mduduzi Bacede Mabuza (Hosea) and Mthandeni Dube (Ngwempisi), while at the same time denying the Crown an application to reopen its case to lead fresh evidence on certain aspects of the case, is the inevitability of their conviction and custodial sentence and thereby further strengthening the perception, indeed belief, from the pro-multiparty democracy lobby that this matter was political.

Leading to the court’s decision on the MPs umpteenth bid to regain their freedom, there was an air of optimism that they would finally get their wish, and be freed on bail, in the face of mounting extrajudicialls social and political disturbances in the form of shutdowns that have been wreaking havoc across the nation in recent weeks. Also feeding on this was the Crown’s surprise application to reopen its case at the conclusion of the defence’s case, an indication that the prosecution was doubtful about the strength of its case to achieve a conviction. Consequently, it was largely expected that Justice Dlamini would oblige and allow the Crown to reopen its case while still refusing to free the MPs on bail.

As I see it, that Justice Dlamini did not see fit to allow the Crown to reopen its case, a rare but empty victory for the MPs, at the close of the defence’s case while also denying the MPs their freedom, can mean one thing, and one thing only, that she is satisfied that the Crown had already made a strong case for their conviction and that, therefore, there was no need to lead additional evidence. It is inconceivable, indeed as it would be illogical and inconsistent, that Justice Dlamini would on one hand deny the MPs’ bail application yet on the other hand still proceed to acquit them. After all she had already determined, at the close of the Crown’s case, that the MPs had a case to answer when dismissing their application for absolution from the instance.

Nomination

Also casting a pall over the case was the nomination, by government, of Justice Dlamini to a tribunal of the Southern African Development Community (SADC) and its timing. While the appointment has no direct bearing on the MPs’ case, it has nonetheless created some negative perceptions in the minds of the public, especially proponents of multiparty democracy, that she was being rewarded, which does not augur well for the credibility of the justice system. This is more so since the MPs’ case is tainted by politics notwithstanding repeated denials from government. If the demands to free the MPs on bail could paralyse the kingdom as it apparently did on the occasions of two shutdowns, it is anyone’s guess what convictions and custodial sentences could unravel. But that is a matter to be dealt with at the appropriate time.

Now back to the matter of Ecsponent, an issue causing sleepless nights to many emaSwati that government probably wishes it could go away. Government has simply failed Ecsponent investors on two fronts; regulatory and failing to take up the matter of the collapse of this investment vehicle. Regulation is at the heart of this matter because it was its failure that allowed Ecsponent to scam dozens of emaSwati investors some of whom invested their life’s savings in the hope of securing a future of financial independence and economic wellbeing. The Financial Services Regulatory Authority (FSRA), as the regulatory entity, a creation of government, failed in its fiducial responsibilities to protect domestic investors to Ecsponent. To date both the FSRA and government have been spectating this debacle from the sidelines when they ought to be integral with interventions that could lead to the repatriation of the tens of millions of Emalangeni invested in Ecsponent.

Probe

Government, through the Minister of Finance Neal Rijkenberg, had undertaken some months ago to Parliament to establish and appoint a forensic probe into the whole scam but nothing of the sort has materialised. So far everything has been met with indifference yet the longer it takes to do something about this scam the more difficult it would be to recover the lost investments to the detriment of the 1 138 investors, which among others included retirees and churches – 76 of whom have since passed on. As I see it, government, by turning its back on the investors, is somewhat indirectly condoning and being complicit to fraudsters coming to these shores to fleece the people. And this is a government that is posturing itself as caring for the people yet its track record is contrary. In Botswana the government moved swiftly to investigate a similar scam and the matter is now before the courts.

That is an example of a people-centric government and not one that claims to be but treats people as a by the way. But kudus to the domestic investors who did not waste a moment immediately it surfaced that they had been scammed but scrambled to create the Investor Relations Committee and ESW Investment Group to try recover their investments. Now all they need is government support that is not forthcoming.