Africa-Press – Eswatini. Senate has passed a motion, which seeks to stop FSRA from issuing licenses to financial service providers and companies that con gullible Emaswati their hard earned monies, under the guise that they could make lucrative returns on their investments.
The Senate resolution comes in the wake of news of Emaswati losing up to E500 million in the hands of financial investment companies that were licenced by the Financial Services Regulatory Authority.
Currently, hundreds of Emaswati are caught in a court wrangle to fight for recovery of up to E340 million that had been invested into Ecsponent after being promised irresistible returns.
Status Capital Building Society (SCBC) has also run to the South African High Court (Gauteng) to demand Status Asset Management (SAM), led by Dave van Niekerk, who was allegedly also involved at Ecsponent, to return up to E100 million that was taken from the society and invested into companies where van Niekerk allegedly has links without approval of SCBC’s board and management.
The stoppage of Emaswati from losing their monies will be undertaken by a sessional Trade and Investment Committee that has been tasked to play an oversight role not only to the FSRA but other licensing authorities as well as through development of a rigorous vetting and licensing process.
The decision to formulate the committee, which will among other things define who qualifies to be classified as an investor in the kingdom, was reached after Senator Lindiwe Ngwenya moved a motion without notice in accordance with the Standing Orders for formulation of a Trade and Investment Committee.
Adopted
Senate President, Lindiwe Dlamini, mentioned that the adopted committee would be appointed by the Senate sessional committee.
When motivating for adoption of her motion, Ngwenya explained that the committee would benchmark on developed countries such as Korea as to how the economy could be turned around to reach full potential.
“The committee will be tasked with ensuring that the country attracts investments that will fast-track the process of mutating Eswatini into a first world country,” Ngwenya submitted.
Senator Siphelele Mkhonta said it would be important to define what an investor was because there had been a worrying trend by companies and individuals to apply for licensing in the kingdom with the aim of conning Emaswati.
Mkhonta said the country seemed to be an easy target for people who claim to be investors yet they were criminals.
He pointed out that FSRA issues licenses under the guise of being investors yet Emaswati monies disappear in the process.
Expect
“I hope the (trade and investment) committee will seriously delve into such issues in as far as licensing of such companies by FSRA is concerned. We will expect the committee to look into how FSRA issues such licenses in the first place.
We should interrogate what these dubious investors say to the FSRA which confuses them into issuing licenses to people with criminal intentions.
It is high time we put a stop to Eswatini being seen as an easy target by criminals who con people hard earned monies under the pretext of being investors,” Mkhonta emphasised.
Senator Tony Sibandze further submitted that it would be important to establish the trade and investment committee in order to tap into opportunities availed by regional blocs and many other strategic alliances of the kingdom.
Senator Linda Nxumalo said the committee would foster job creation through luring credible investors into the kingdom.
Senator Chief Ngome added that the committee would also be expected to make investing in rural areas easier for Emaswati, which could also improve the country’s rankings in the Ease of Doing Business.
For More News And Analysis About Eswatini Follow Africa-Press
