Home | News | GOVT OWES SWAZI SPA HOLDINGS ABOUT E0.5M

GOVT OWES SWAZI SPA HOLDINGS ABOUT E0.5M

11/04/2022 08:34:00 Ntombi Mhlongo

Font size:

MBABANE – Government reportedly owes close to E500 000 to Swazi Spa Holdings, which is now under liquidation.

This is an allegation contained in court documents containing minutes of a meeting of shareholders for Swazi Spa Holdings Limited and its subsidiaries. The veracity of the allegation is yet to be tested in court. The meeting, according to the minutes, was held at the Convention Centre of the Royal Swazi Spa and Resort on Friday March 18, 2022. In June 2021, the High Court of Eswatini issued a final order for the liquidation of five companies under Sun International Management Limited. The affected companies include Swazi Spa Holdings, which was operating SwaziSpa Hotel and Casino, Lugogo Sun and the Ezulwini Sun.

Shareholders

According to the minutes, the Liquidator, Marissa Boxshall Smith, presented a third report to the shareholders after which they deliberated on a series of issues surrounding the whole liquidation process. The report, according to the minutes, was to give an update to creditors and shareholders on the process of the liquidation. The report covered bids which had been received, collections, legal matters and other issues for consideration and the financial status of the monies in the liquidation bank account. Under claims in favour of the estate, the minutes stated that she had done some investigations and had since discovered that a sliver of land was sold to the Eswatini Government for purposes of constructing the International Convention Centre (ICC).

“I have been informed that the sliver of land is not more than 170 square metres. Payment has not been made and this silver of land has not been sub-divided off the main portion,” reads part of the minutes. The minutes also contain details of trade debtors one of which is a company known as Akilanga Tours. The amount owed, according to the minutes, is E561 057.
It was mentioned that Akilanga Tours owed Sun International Group of Companies E1.8 million. “It is my understanding that these monies are being liquidated in monthly instalments of E180 000 paid to Sun International who in turn has to make payment to the liquidation account. I have made contact with Sun International regarding payment and payment shall be made in instalments of E45 000 per month as and when they receive the monies from Akilanga. “There is currently E90 000 that needs to be paid by Sun International to the liquidation account. I am hopeful that these monies shall be paid shortly,” stated the liquidator. Also included is a debt by the Institute of Development Management (IDM) which the liquidator said the claim amount was E46 067.

Demand

Smith mentioned that she had since served a letter of demand on the institution and it had requested certain documents in the form of invoice and purchase order which were provided.
“I am hopeful that settlement will be reached,” she stated. The minutes also contain the liquidator’s feedback of finances where she stated that she had since sold golf carts amounting to E800 000. She mentioned that motor vehicles have also been sold with the exception of one and a motorbike. The vehicles, the liquidator said, were sold for an amount of E970 million and the monies were utilised towards administration costs. “I have also collected an additional E1.5 million from the insurance that was in place for interruption in business during COVID-19. I have also made contact with Eswatini Mobile who owes us in the region of E90 000 and has acknowledged the debt. Eswatini Mobile has been provided with invoices and we should be receiving payment shortly,” said the liquidator.

Furthermore, the liquidator said MTN was also in arrears which the company confirmed. She said in her second report, she advised the creditors on a lease that she had received from MTN for a rental of E35 794.08 payable monthly for the next three years. “I finalised the lease with MTN who then refused to sign because the rental fee was too much. It was MTN that provided me with the lease agreement with the amount in, which I accepted. MTN has now informed me that it needs to conclude two leases as they have equipment at two different sites. I am still busy trying to finalise the leases and await their response,” she said.