Investors Seek Recourse as ESW Investment Group Faces Fraud Allegations

A total of 49 individuals, comprising 36 men and 13 women, boldly invested amounts exceeding E1 million each in ESW Investment Group (formerly Ecsponent Eswatini Pty Ltd). The collective investment pool, including 1,400 individuals and entities, reached a staggering E406,932,055.55. However, the narrative took a grim turn as allegations of fraudulent transfers emerged, leaving investors grappling with unrecovered funds.

Notably, E335,240,000 of the invested sum was purportedly transferred fraudulently to the Republic of South Africa, leaving investors without the expected returns on their investments. Among these investors, the Likhwane Beneficiary Fund, having invested E63 million, has resorted to legal action seeking redress for their financial losses.

Legal Battles Unfold

In a legal twist, a default judgment initially favoring two investors, commanding ESW Investment Group (ESWIG) to reimburse them E600,000 each, was rescinded in November 2023. High Court Judge Maxine Langwenya granted leave for ESWIG to defend itself in the matter, adding a layer of complexity to the ongoing legal battles.

Varied Investment Portfolios

The highest individual investment, a staggering E4,710,040.81, was made by a man, surpassing all others. Following closely was a woman who invested E3,657,672.69. Additional investments above E3 million included amounts such as E3,146,252.99 and E3,288,534.82. Thirteen individuals opted for investments ranging from E2 million to E2.9 million, while the majority of the 49 investors fell within the E1 million to E1,906,599.69 range.

Diverse Entities in the Mix

Investment portfolios extended beyond individual investors, with Likhwane Beneficiary Fund leading organizational investments at approximately E63 million. United Life Assurance Ltd contributed E7,148,718.48, the University of Eswatini (UNESWA) invested E5,900,000, and the Royal Eswatini Police Death Benefit and Death Scheme added E3,457,474.90 and E2,439,107.43, respectively.

Fraud Allegations Unveiled

ESWIG has pointed fingers at Sandile Dlamini, the former CEO of the Financial Services Regulatory Authority (FSRA), alleging his involvement in the fraudulent transfer of E335,240,000 to South Africa. The investment group, in its combined summons, demands restitution from FSRA, Ecsponent Limited South Africa, and GetBucks (Pty) Limited South Africa, among others.

The combined summons claims that Dlamini was privy to measures to manipulate ESW Investment Group, facilitating the illicit transfer. Investors, having entrusted their funds for higher returns, now seek the return of the allegedly misappropriated E335,240,000, setting the stage for a legal battle involving key industry figures and institutions.