HIGHLY-POWERED TEAM LAUNCHES PROBE INTO LEAK OF 890 RECORDS

EZULWINI – A highly-powered team comprising government officials and the head of government has launched an intense investigation into the alleged leak of over 890 internal records from the Eswatini Financial Intelligence Unit (EFIU) to the International Consortium of Investigative Journalists (ICIJ).

These documents include financial records allegedly obtained from the EFIU and were used to compile reports which were published under the banner of ‘Swazi Secrets’ or ‘Open Secrets’. They touch on politicians, businesspeople and other high-profile people, who are linked to financial transactions which they purportedly carried out over a period of about six years from 2016.

Investigation

The ongoing investigation into the leaks was disclosed by the Governor of the Central Bank of Eswatini (CBE), Dr Phil Mnisi during his engagement with editors, dubbed ‘Tea & Coffee with the Governor’, which was held at the MTN Golf Course yesterday morning. The governor said the investigations are being carried out at different institutions, which he did not divulge. According to Mnisi, the launched probe is aimed at ascertaining whether the kingdom has wanting financial processes or the financial system was hacked, stressing that ‘this is crucial because we need to bring confidence to all and sundry that the Eswatini financial system is sound, compliant and is protecting the interest of everyone’. Without committing himself to detail each of the reported matters in the alleged leaked records, Dr Mnisi said as the investigations continue, the CBE is playing its part in complying and also undertaking the proper due diligence it has to do.

The governor went on to say that they are not going to entertain people, who are obtaining information through hacking systems and exposing the country to reputational risks. “We are not going to entertain that. We do not want to let hackers and people that are leaking information to get away with it,” Dr Mnisi said. Unequivocally, he added: “If there is anyone who would be found to have leaked the information and hacked the system, we as the CBE and as the financial sector, say those people must be brought to book.” Dr Mnisi described this alleged incident as unfortunate, which many other countries’ financial institutions are also battling with. He alluded to the hacking of the Lesotho financial system, which occurred in mid-December 2023, and affected several systems, forcing the country’s financial system to be shut down. The governor said some hackers were always looking at hacking systems. “The risk is everywhere and the country needs to identify it, control it and these are the principles of managing risks,” Dr Mnisi said.

He said now that the country is faced with challenges, the country’s authorities must work together and not point fingers at one another.  “I also wrote to the prime minister and Finance Minister Neal Rijkenberg, saying that it is time to work together to make sure that the credibility and integrity of the financial system is not compromised, because if we don’t, that would be detrimental to the country,” the governor said. Responding to a question regarding whose responsibility it is to help and exonerate or defend the individuals, who were named in the documents. This question arose after it was clarified that being named in such reports did not necessarily mean that a person was involved in an illicit transaction. It was expounded that some of the named institutions or individual transactions were included in the report, because they were reported to the EFIU as suspicious transactions, which were investigated and cleared.

Regarding the exoneration and clearing the names of the named individuals and institutions, the governor said people should remain calm and if questions are being asked, they should refer them to the institutions mentioned or to have been involved in the leakage. “I must say that we should interact with the financial institutions which are mentioned in the report. For instance, if the Farmers Bank has a concern of how it was named in the report, it must come to the CBE and we will explain how their name got into the report,” Dr Mnisi said. He said if individuals would take it upon themselves to clear their names, they might end up compromising the system. Dr Mnisi also disclosed that there was an orchestrated and structured approach to how they were working towards creating stability and restoring confidence in the financial system of the country. He further underscored the importance of protecting the individuals mentioned in the report, as well as the companies, because people might say these documents were leaked only to find out that is there is ongoing hacking. “That is why there is a full investigation happening in the background,” the governor reiterated.

Documents

Responding to what are the domino effects of the leaked state documents on the country’s economy, the governor said: “The impact would be consequential, because, once information leaks, investors think twice whether it is safe to invest in Eswatini. I am protected. These are the real pressures caused by the leaks and that is why we are taking this matter with the seriousness it deserves and dealing with it because the domino effect is very much dire.”  He further said the alleged leaks will lead to an increase in the cost of raising capital. Dr Mnisi said it became very difficult for the country or institutions to raise capital if it was described as jurisdictions with the hallmarks of being a haven of suspicious transactions and illicit flows of money.

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