Africa-Press – Eswatini. In realising its goal of bringing back all the lost monies that were invested in Ecsponent by Emaswati since 2014, ESW Investment Group needs government’s urgent assistance to ensure that all those involved in the ‘looting’ are brought to book through taking the legal route.
ESW Chief Executive Officer (CEO) Max Mkhonta, speaking to the press this week, said although they promised to take this route when they took office in May, but they have since realised that it would be too costly for a company of their magnitude and that is still working on ensuring that all the 1 138 investors get their money back to pursue.
He said it would cost in the excess of E1 million to pursue all the wrongdoers hence they need government’s full intervention and will to succeed in taking them on.
By government he was referring to both Cabinet and the Legislature.
“The management team that assumed office in May 2022 and the Investor Relations Committee (IRC) elected by the investors in June 2022 have been working diligently to understand the nature of the issues that led to the unfortunate situation that we all find ourselves in whereby investments made by Emaswati were embezzled,” he said.
He revealed that their own investigations through auditors, although minimal, have pointed to the monies making their way out of the country through foreign companies such as VSS Capital and to pursue these companies would be too costly and defeat their immediate goal of assisting all the investors get their money back.
“For now our resources are channelled to the recovery of the investors’ funds and accountability is key in everything we do. That is why we have discovered that the State is best equipped to take up this task to its entirety. Unless somebody is arrested for this wrongdoing a lot others will continue to take us for granted as a nation and see us as fertile ground for just giving them our hard-earned money,” added Mkhonta.
Mkhonta noted that to recover the full E431.2 million owed to the investors, they would present a stronger front by having a State-led investment recovery of the lost funds than just a company-led one.
“This is very serious for us to achieve as a company and as a country. A lot of Emaswati invested their hard earned money – even pensioners, only to find out that their entire investments have vanished into thin air.
“To further compound the situation, 76 of the investors are now dead and their investments can only be paid out to their Estates. Surely their beneficiaries want to see justice for their benefactors,” added Mkhonta.
Mkhonta said it was vital for members of Parliament (MPs) to push for the forensic investigation into Ecsponent, ESW and other related companies to get to the bottom of where the investors’ money vanished to.
“We have been in constant contact with the ministry of finance, the regulator FSRA (Financial Services Regulatory Authority) and the Central Bank of Eswatini in ensuring that something is done to bring back the money.
The best thing for us now is to assist in whatever way possible to see this through,” he added.
On a positive note, Mkhonta highlighted that there had been progress made in the last five months whereby the company has been able to raise and disburse a total sum of E3.6 million between July and November 2022, fully liquidating this liability in line with the commitment made when they met the investors in June 2022.
“Our forecast shows that by January 2023 ESW, and all its related companies, will be able to focus 100 per cent on the repayment of the E406 million liability as well as sustain support to the E9.5 million medium term note programme under GetBucks, which continues to perform well,” he added.
For More News And Analysis About Eswatini Follow Africa-Press
