RIGHT OF REPLY: DAVE HITS BACK AT ALLEGATIONS HE COLLAPSED ECSPONENT
George Manyere, who served as CEO of Ecsponent Limited from March 2017 to March 2020 and is now a non-Executive Director of ESW InvestmentLimited, acquired Ecsponent Eswatini for E1 through his company MHMK.
Manyere's tenure at Ecsponent Limited included roles as Director from March2017, Non-Executive Director until January 2019, and Executive Vice Chairman until March 2020. During his leadership, MHMK Group, which controls entities including GetBucks, held the majority of Ecsponent Limited's shares.
The scandal revealed a loss of E340 million, with approximately half of thisamount loaned to Manyere's companies. This acquisition was only disclosed in financial statements and not communicated directly to shareholders.
Ecsponent Eswatini, a majority-owned subsidiary of Ecsponent Limited, raised funds from around 1,500 emaSwati andprovided credit to GetBucks Eswatini and Ecsponent Limited. George Manyere allegedly converted the debtors' book into MyBucks shares in violation of local regulations. Ecsponent Limited’s business model, based on retail investments, faced liabilities exceeding E2 billion, balancing short-term liquidity and medium-term redemption.
The Eswatini Daily News reports a letter from the Bank of Zambia questioning Manyere’s approval of a US$7.3 million sale of MyBucks Zambia without thenecessary consent. Additionally, Edwin Soonius, cited in legal proceedings as a director but not part of any investment committee, is mentioned.
Clive Dekker Hofmeyr Inc. (CDH) was appointed by the Central Bank of Eswatini to investigate Ecsponent Swaziland Limited (now ESW Investment Group) regarding its investment, lending activities, nancial stability, and risk management from November 16, 2023, to April 30, 2024.
The investigation, paused over the year-end break, uncovered that during MyBucks Group’s restructuring, Finclusion, directed by Mr. Nuy, acquired several assets under the guise of o oading non-core assets, potentially bene ting Mr. Manyere and Mr. Nuy.
The report also revealed irregularities in Ecsponent’s operations, including compliance issues, questionable transactions, and a problematic licensing process. Key findings include suspicious transactions involving Mr. Dlamini and Mr. Shongwe and complications in asset recovery due to intricate company structures and interlinked transactions. Further investigations are recommended to address these issues comprehensively.
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