THE HUNTER NOW THE HUNTED

The Parliament Select Committee that was set up to look into the Ecsponent forensic audit and advise MPs accordingly has tabled a report that, in my view, does not provide the relief that the affected investors would have wanted.

It seems to have only helped raise more finger-pointing, compounding the blame game that skirts around the application of existing financial laws that have been invoked when such statutes have been breached by others in the past. At best, the report brings into question the accountability and oversight role of our financial services and regulatory sector. Key figures, such as George Manyere and Dave Van Niekerk, have been implicated in the scheme, but law enforcement agencies are not saying if they are even persons of interest.

Talks

The Finance Minister, Neal Rijkenberg, and the Central Bank of Eswatini Governor, Phil Mnisi, have also held talks with the duo, with Van Niekerk even enjoying a visit from the Parliament Select Committee at his leisure in South Africa (SA), courtesy of the taxpayer. Despite all the forensics, committee reports, engagements and trips to SA, one can find no trace of an admission of guilt by any party or promise to pay the devastated investors who filed a court case against the Financial Services Regulatory Authority (FSRA), blaming it for their misery.

The MPs have cast doubts on the prospects of success in this litigation instituted by the over 1 000 investors and have suggested that the Finance minister and Central Bank governor be tasked with recovering their money over the next three months by engaging all the major stakeholders, inclusive of Van Niekerk and Manyere. In essence, the responsibility is being placed on Rijkenberg and Mnisi to recover the money. They now carry the monkey on their backs. The closest movement towards directing accountability towards those responsible for the investment losses in this matter is a statement having the attorney general tell parliament that warrants of arrest against them have been issued but will not say against whom.
The Royal Eswatini Police Service (REPS) refuse to confirm the existence of such warrants, which raises further doubts about the seriousness of the investigation or the prospects of the culprits having their day in court. This is a rare shift from what we have seen over the years.

False

Ponzi schemes have thrived on the unfulfilled promises of overnight wealth, a false narrative that preys on those eager for financial gain. In previous cases, it was encouraging to see authorities apply the law to the letter and the criminals being apprehended, followed by court processes that landed some in jail to serve time, even though the victims never really got all their money back.

Most recently, the High Court has issued an order under the Prevention of Organised Crime Act (POCA) of 2018 for the forfeiture and sale of properties belonging to the company’s owner as a means to recover about E34 million said to have been syphoned from unsuspecting investors. About 2 000 investors are affected here.  The Ecsponent scandal is no different. The only difference is that there are no assets to attach in the latest scam. The well-calculating Ecsponent swindlers misled about 1 318 investors with enticing offers, ensuring that those who were lured into the trap believed they were making wise investments. The reality, however, was a financial house of cards, which ultimately toppled, leaving behind shattered dreams and empty wallets. About 81 of these investors have since passed away, many of them penniless.

The wheels of justice are not moving in the same direction in the Ecsponent case as they did with other cases and this is what has given rise to lack of trust in the process and and the finger-pointing. One cannot help but start thinking how this must have been the game plan of the cunning culprits from the beginning and probably why there is now talk that the taxpayer must be held responsible for refunding investors of this ponzi scheme.

Refunded

This idea should not be entertained, even though precedence may have been set when Central Bank refunded investors in the SWEET bank collapse fiasco. Where would it stop, as next we will be refunding victims of ‘facata’ scammers or those of the Sukke Ontime investors, etc., etc.? It would perpetuate financial crimes and before we know it, taxpayers would be compensating every victim who cares to scream robbery—all because the tables have been turned by the suspect criminals who have now put law enforcement agencies on trial.
Who would have imagined seeing the Central Bank of Eswatini (CBE) and the FSRA with their backs against the wall, having sleepless nights trying to defend themselves when they have all the ammunition to put the real culprits in the dock.

However, the regulators hold the ‘get out of jail cards’ as the law is on their side only if they care to use it accordingly. The public is watching closely and any perceived attempt to undermine the investigation or shield the guilty cannot be tolerated. The victims of this crime deserve restitution and the perpetrators must face the full force of the law. Then, government must work towards implementing measures to prevent similar scams in the future.
 

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