CENTRAL BANK RUNS TO COURT TO STOP TIMES STORY

MBABANE - The Central Bank of Eswatini (CBE) has filed an urgent application to interdict the Times of Swaziland from publishing a story surrounding the issuance of a licence to the Farmers Bank.

The story is being pursued by the Times SUNDAY, which is a sister publication of the Times of Swaziland daily newspaper.
CBE Governor Majozi Sithole contends that disclosure of such information had the potential of upsetting the banking sector and creating an adverse risk with correspondent Central Banks worldwide.

“The report contains opinions which are subject of debate even internally and as such, once published, may give rise to improper conclusion as to the bank licensing process and thereby jeopardise the banking sector in the country,” argued Sithole.

Respondents in the matter are African Echo (PTY) Limited trading as Times of Swaziland, Times SUNDAY Editor Sifiso Sibandze and Times SUNDAY Senior Journalist Welcome Dlamini.

Interdicting

The bank is seeking an order interdicting the respondents from publishing articles and information contained in a confidential report on Farmers Bank Licence application.
The applicant (CBE) is further praying for an order interdicting and restraining the newspaper from publishing articles and/or confidential information pertaining to the employment contract of its deputy governor.

Sithole submitted that Dlamini was in possession of the confidential report that was prepared by the CBE’s Financial Regulation Department in connection with the processing of an application by Farmers Bank for the grant of a banking licence.

“The process of licensing banks, is an intricate and confidential process, which includes the financial soundness; track record, international standing and reputation of the entity seeking a licence and the screening of shareholders,” said Sithole.

Confidential

He stated that in this connection, various submissions of a confidential nature were made by the entity that was seeking a licence and likewise, confidential assessments and evaluation were undertaken by CBE. 
 Sithole highlighted that the above was done in order to determine the suitability of granting the banking licence.

“Ultimately, the decision on whether or not to grant a licence lies with the office of the governor, acting on the advice of the Financial Regulation Department. The Financial Regulation Department prepares a strictly confidential report for deliberations and for purposes of determining whether or not to grant the banking licence, submitted the governor.

According to Sithole, the confidential information, which was not to be disclosed to unauthorised persons or any other person outside CBE, had apparently been unlawfully obtained by the newspaper.

The governor alleged that the senior journalist had confirmed to CBE upon enquiry that he was in possession of the confidential information.
He informed the court that on January 18, 2019, Dlamini sent a questionnaire to the bank’s communications officer requesting responses to various questions on the matter. 

“It was apparent to me from the questionnaire that the third respondent (Dlamini) was in possession of the confidential document,” said Sithole.
These are allegations contained in an affidavit whose veracity is still to be tested in court and the respondents are yet to file their papers.

He averred that he then brought it to the attention of Dlamini that the report was confidential in nature and that CBE had the right to protect its privacy, including confidential documents and that possession by him (Dlamini) was therefore unlawful and wholly improper.

Sithole said he also informed the senior journalist that by its nature, it was apparent that the report had been obtained unlawfully and that such acquisition and disclosure of the report was in violation of Section 20 of the CBE Order.  
He claimed that he further informed Dlamini that the disclosure of the report was also in violation of the oath of secrecy that all employees of the bank were required to adhere to. These are averments whose veracity is yet to be tested in court.

Disclose

“I also informed the third respondent that in terms of Section 20(3) of the Central Bank Order, it was criminal offence for him to disclose, reveal or publish any confidential material and/or any material that falls within the ambit of the secrecy provisions that are applicable at the applicant’s undertaking,” said the governor.

Sithole mentioned that he went on to tell Dlamini that the bank had a right to the protection of its confidential information. The governor contended that the bank was concerned about the continued publication of the report.
“In view of the foregoing, we requested Dlamini to provide us with an undertaking that he will not publish the report. Up until the signing of this affidavit, the respondents have failed to provide the undertaking,” argued Sithole.
The matter is pending at the High Court and will be heard tomorrow.

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