Africa-Press – Eswatini. Likhwane Beneficiary Fund argues that that Financial Services Regulatory Authority (FSRA) wants to liquidate it because it intends to move an E63 million lawsuit against the latter.
This was said yesterday at the High Court by Likhwane representative, Mlungisi Khumalo. This was during the ongoing court case between FSRA and Likhwane, which was also joined by seven pension funds from the government parastatals.
Khumalo contended that FSRA moved the application for liquidation because it wanted to bury Likhwane for good, as it had information it wanted to disclose what was actually happening.
However, Khumalo’s submission was challenged by FSRA’s representative, Kenneth Simelane, who said the submission on information, should not be accepted by the court, as it was not in the papers filed by Khumalo in court.
High Court Judge Bongi Magagula agreed with Simelane and former withdrew the statement on the part of the information.
Khumalo stated though that he had indicated in the papers he filed in court that he intended to move a lawsuit on behalf of Likhwane against FSRA for E63 million.
He questioned the manner in which FSRA approached the court. He said the authority approached the court on an urgent basis on August 16, where it got a provisional liquidation order against Likhwane.
However, he questioned the urgency with which FSRA approached the court, stating that it lacked the necessary information that was supposed to be given to the court.
He said the fact that FSRA did not give enough information to the court meant that it got the provisional order through questionable means.
Khumalo contended that FSRA did not mention the dispute of facts when it applied for the liquidation order in court.
He said it was for this reason he felt the application by FSRA should be dismissed with costs.
He told the court that on July 25, 2023, there was a directive written to Likhwane by FSRA, where the beneficialry fund was told to cease and desist. That meant it was no longer supposed to take any new business.
Khumalo said there was a letter written by Likhwane to FSRA on August 1 and the Authority was allegedly replied to it on August 24.
He said what was even mind-boggling was that FSRA responded on August 24 after it approached the court on August 15 and got the provisional liquidation order against Likhwane.
He wondered how such a thing was allowed to happen.
Khumalo said all along, the two parties were communicating and all of a sudden, FSRA went behind Likhwane and everyone’s back and approached the court for the order, which was obtained without Likhwane’s side of the story.
He said FSRA got the court order and on August 24, it then remembered that it had to respond to a letter written to it on August 1 by Likhwane.
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