MBABANE, ESWATINI – The Nigerian adage “Everyday for the thief but one day for the owner” aptly describes the developments in Eswatini, where the High Court is closing in on David van Niekerk, founder of Ecsponent and the infamous GetBucks, along with his associates, in a case involving the alleged squandering of over E335 million.
David van Niekerk and associates have been implicated in the disappearance of hundreds of millions belonging to the public across Southern Africa, particularly in Namibia, South Africa, and Botswana. Van Niekerk is widely alleged to be the mastermind behind these financial irregularities. Forensic reports and several documented evidence prove thus.
Botswana has not been spared.
In a rather cunning and unorthodox manner of misappropriating company funds, The Business Weekly & Review previously reported on the P116 million that was transferred to offshore-related companies by GetBucks directors, leaving the financial sector in shock. The scheme was so expertly executed that within a day or two of the funds being deposited into GetBucks Botswana’s account, instructions would immediately follow to move the money offshore. The P116 million was just a fraction of the P500 million bond that GetBucks had listed on the Botswana Stock Exchange (BSE) to finance company operations, a purpose that was ultimately violated.
That same modus operandi was attempted in Eswatini, but unlike in Botswana—where capital and financial market regulators, along with other relevant authorities, were reportedly “intimidated” by Van Niekerk to “back off” and allow him to escape unscathed—Eswatini is resolute in its determination to prosecute him and his associates.
Eswatini’s Minister of Finance, Neal Rijkenberg, is set to testify in court against David van Niekerk, founder of Ecsponent, and Sandile Dlamini, the former Chief Executive Officer (CEO) of the Financial Services Regulatory Authority (FSRA).
The Minister is among 14 witnesses who will testify in the case, where it is alleged that Escalator and/or Ecsponent made a payment of E117,000 into Sandile Dlamini’s bank account.
Previously, David Van Niekerk, Edwin Soonius, and others were ordered to repay the E335,240,000 that had been invested by over 1,000 emaSwati in Ecsponent, now rebranded as ESWIG.
The other respondents ordered to repay the funds include Ecsponent Limited South Africa, GetBucks (Pty) Limited South Africa, and Anthony Hay. The money had been invested by numerous individuals and entities in ESW Investment Group (ESWIG) with the expectation of higher returns.
The former Financial Services Regulatory Authority (FSRA) CEO, who is currently out on bail, was arrested by the Anti-Corruption Commission (ACC) on charges of corruption. He is facing seven charges related to the registration of Ecsponent and Status Capital Building Society, which resulted in a loss of E340 million for numerous emaSwati investors. The charges include allegations of abuse of power in the registration process and accepting a payment of E117,000 from Escalator/Ecsponent.
In the summary of evidence attached to the indictment filed by Acting Deputy Director of Public Prosecutions (DPP) Lomvula Hlophe, the Finance Minister is expected to testify in court, detailing how he became aware of the registration of Status Capital Building Society.
He is also expected to state the steps he took to ensure compliance with the law, before Ecsponent was registered. In his statement, which now forms part of the evidence, the minister stated that he received correspondent from FSRA, dated August 6, 2019, requesting for approval to register Status Capital as a building society.
He narrated that on September 13, 2019, he responded and advised FSRA to do some vetting by consulting the Eswatini Financial Intelligence Unit (EFIU) and other relevant law enforcement agencies, and issue a clearance report on the entity and the subscribers of the shares.
He went on to state that FSRA responded by advising him that it had the responsibility to register a building society and thereafter, licence it as an authorised financial service provider. “Witness (minister) will further tell the court that he approved the registration of Status Capital Building Society on October 25, 2019.
“However, FSRA issued the licence certificate for Status Capital Building Society on October 11, 2019,” reads the part of the minister’s evidence.
Others to be paraded as witnesses are former FSRA employees and some of its senior managers. The crown also lined up former and current FSRA employees, who held managerial positions, to testify in the matter.
They will detail to the court how allegedly the registration was influenced to ensure, despite not having followed the laid down procedures. According to the evidence, despite advice from his subordinates, the accused told them that he would licence Status Capital Building Society. In his statement, Bukhosi Dlamini, who was employed as a general manager responsible for the Credit and Savings Institutions (CIS), is expected to testify on the functions of the CIS and the process to be followed in the registration of building societies.
He will tell the court that during the year 2019, FSRA, through the office of the CEO, allegedly received an application for registration of Status Capital as a Building Society. Bukhosi alleged that Sandile forwarded the application to his office, and he (Bukhosi) checked same and forwarded it to the manager of Credit and Savings Institutions.
According to Bukhosi, the application by Status Capital Building Society was processed by his team and made recommendations for its registration through the CEO, who at that time was Sandile. He alleged that the accused then wrote a letter to the minister of finance seeking approval to register Status Capital as a building society. “The minister declined to grant authority to the registration. The minister advised the accused to engage Eswatini Financial Intelligence Unit and other relevant law enforcement agencies before the minister of finance could consider granting the approval,’’ reads his summary of evidence.
Bukhosi is also expected to testify that during a discussion, the former FSRA boss inquired as to what could stop them from issuing Status Capital the licence. He alleged that the former CEO ordered him to grant Status Capital the licence as he would speak to the minister of finance about the matter during the spring meeting, which was to be held in the United States of America.
According to Bukhosi, the accused then requested all the documentation that had been filed by Status Capital in support of their application. “The witness (Bukhosi) will further tell the court that then they returned to their respective offices, and he delayed carrying out the order from the accused hoping he would change his mind about issuing the licence without the proper procedure being followed.
‘’After a few minutes, the witness got a call from the accused asking about the printing of the licence. The witness then instructed Themba to instruct Welile to print the licence. “After it was printed, the witness took it to the accused, who was still with Status Capital representatives for his signature,’’ he continued.
He will further tell court that the issuing of a building society licence to Status Capital was not normal as its registration was not complete and the assessment process of the application for a licence had not been properly done. Another witness to testify in the matter is Samkelo Dlamini, who is a former FSRA employee. In his summary of evidence, Samkelo narrated what transpired during a meeting held on October 11, 2019.
Samkelo is expected to tell the court, among other things, that during the meeting, they advised the former FSRA CEO that it was not appropriate to licence Status Capital because of many issues raised, which were statutory capital and fitness as well as probity of one of Edwin Soonius. “Despite their advice, the accused told them he would licence Status Capital. After the meeting the accused instructed one of the employees to prepare the licence for his signature together with a letter to Status Capital, informing them of the documents which were still outstanding.’’
These allegations’ veracity which is still to be tested in court and the accused is yet to present his side of the story during the trial. He will further tell the court that the whole process of registering and licencing Status Capital was flouted as due process was not followed because of Sandile’s purported interference and breach of the law. Also, to take to the witness stand is Simanga Mdluli. He was employed as a Financial Analyst in the Capital Markets Department of FSRA.
He is expected to tell the court that he was holding the position when Escalator Capital submitted its application for a licence. He will testify that the Capital Markets Department Shared office space with the Swaziland Stock Exchange (SSX) and during that period, the latter was investigating the Sharemax scandal. One off the officers of SSX reportedly noticed that the product that Escalator Capital was purporting to market was similar in structure to that of Sharemax.
‘It was further discovered that some of the senior leaders of Escalator Capital had worked at Sharemax and Isambulo (a broker for sharemax).’
‘The witness will tell the court that due to the above-cited issues; Escalator Capital’s application was declined by the general manager. ‘’Escalator Capital then appealed to the accused, who instructed the Capital Markets Department to issue their licence,’’ alleged Mdluli in his statement, which has been filed in court.
