Africa-Press – Eswatini. Senators have urged Minister of Finance, Neal Rijkenberg, to ensure that the merging of the Financial Services Regulatory Authority (FSRA) and Central Bank of Eswatini (CBE) does not tamper with the ongoing investigations on E300 million lost through Ecsponent.
The legislators urged the minister to ensure that Emaswati, mainly pensioners, were not left worse of following the merger.
This was during the first reading of the Reinsurance Bill, 2021 which was accompanied by a communication from the Speaker, Petros Mavimbela, after the Bill was adopted by the House of Assembly on Monday.
Senator Prince Magudvulela welcomed the bill but complained that the minister did not elaborate much on what the Bill was meant for yet it touched on every Liswati.
The senator noted that Emaswati have lost millions of Emalangeni which they thought they had invested with reputable companies that were certified by FSRA.
“It is concerning how a certain company such as Ecsponent, which took monies from mainly pensioners with the promise of attractive rewards, was licenced by the regulator (FSRA),” he said.
He stated that there were reports that FSRA would be merged with the central bank and wondered what would happen to the investors should this merger be successfully implemented as reported.
He enquired who would then ensure that the funds were recovered, highlighting that some investors were now frustrated and they lost their life savings yet the industry was expected to be regulated.
challenges
Meanwhile, Senator Tony Sibandze elaborated that he hoped the Bill would address the number of challenges faced by businesses in the country.
He said businesses in the pharmaceutical industry were particularly vulnerable because medical aid schemes were closed willy nilly which left businesses with nowhere to turn.
“Even if they go to FSRA they are not assisted and sent from pillar to post,” he said.
He also highlighted that many businesses took up insurance, but recent events of the political situation have left a number of them stranded as the insurance brokers did not provide cover for such incidents.
He added that those that were also affected by natural disasters were also left out in the cold. “Can government compel insurance brokers to offer political and disaster cover in future,” said Sibandze.
Minister Rijkenberg assured that the merging of FSRA and Central Bank would have no effect on on-going investigations.
He explained that currently, FSRA had no full capacity to ensure locally invested funds were not redirected outside the country and the reason for the merger was that the central bank was mandated to monitor and regulate outside investment. “Rest assured we have considered all possible scenarios, and the investigations to recover the funds will continue,” said the minister.
He said most companies did not see the need to have political cover in the country until recent events. He also stated that it was expected that insurance companies would cover for natural disasters.
The minister further referred the bill to the finance portfolio committee, where they would have an opportunity to capacitate the senators on it and they (senators) could make their own input.
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