Aloe Funds, Diamond Africa members to get their money

MBABANE – The Central Bank of Swaziland has been awarded an interim order to take over possession of the illegal pyramid schemes for purposes of liquidation.

This follows an application by Pricewaterhousecoopers (PwC) Advisory Services to be awarded an order to enter into the premises of Aloe Funds and Diamond Africa. The matter was before Justice Stanley Maphalala and Mangaliso Magagula was representing PwC in an exparte application.

The Central Bank of Swaziland has appointed Pricewaterho-usecoopeors (PwC) Advisory Services Pty (Ltd) as liquidator for Aloe Funds and Diamond Africa.
According to court papers, this is in line with the Financial Institutions Act No: 6 of 2005 after the two companies’ accounts were seized by the bank.

The Central Bank of Swaziland seized the accounts after it was discovered that they were conducting a business of deposit taking without its authorisation, as a result contravening section 9 of the Financial Institutions Act.
Maphalala granted the interim order, which is returnable on September 8, 2009. PwC have also been granted an order to enter into any other premises, which are operated by the directors of the two schemes.

According to a founding affidavit prepared by PwC Associate Director Linda Macphail, they needed the order to enter into the companies’ premises for purposes of conducting a search. He stated that the search was aimed at seizing any document or information in any form connected to the deposit taking activities of the schemes.
“Section 22 of the constitution of the kingdom of Swaziland protects any person against arbitrary entry into their premises,” reads part of his affidavit.

Macphail also states that the takeover of the schemes will lead to compulsory liquidation of the companies as set out in the Financial Institutions Act. He stated that his company had extensive experience in handling liquidations as they have in the past been engaged by the South African Reserve Bank for similar jobs.

He further states in his affidavit that the entry into the premises was in the interest of the public and it was for purposes of implementing statutory provisions. He also stated that it was of paramount importance that the schemes were liquidated, because many people invested in them unaware that such activities were illegal.

Diamond Africa has its offices in Mbabane at the Cooper Centre and it is directed by Arlindo Tembe. Justice Maphalala also granted an order for the liquidator to enter the premises of Tembe, which are situated at Selection Park.   
Aloe Funds Swaziland on the other hand has its offices at Enguleni House room G010 in Manzini.
According to the financial Institutions Act of 2005, PwC will determine how much does each company have in their accounts and count on the claims for the people who had invested in them.

The members of the illegal schemes will then be invited by the bank to submit proof that they did make deposits, after which the money would be distributed among them by the liquidator.  
 

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