Ecsponent Recovery Exercise: Central Bank tracks millions in SA

Mbabane – The Central Bank of Eswatini (CBE) has funded legal, forensic and asset-tracing efforts to recover money lost by Ecsponent investors, with the latest investigation focused on assets allegedly moved to South Africa.

The bank says it has borne the costs of engaging Senior Counsel in the Western Cape, a team of experts with previous experience in South Africa’s Asset Forfeiture Unit, as well as a South African-based forensic firm conducting a funds analysis and asset-tracing exercise.

This is detailed in a report presented to the House of Assembly Finance Committee by the CBE-appointed Ecsponent Recovery Team, chaired by Sydney Jele.

While the report does not disclose the total amount already spent on these interventions, it reveals that the recovery exercise could require substantially more money if investigations are extended beyond South Africa.

According to the report, a preliminary quotation from specialist investigators indicates that a comprehensive forensic asset-tracing exercise covering South Africa, Botswana and other jurisdictions could cost between E6 million and E8 million and take approximately eight to 12 months.

The CBE says the cost and duration would depend on the complexity of the investigation; cooperation received from the jurisdictions involved and the extent to which assets may have been concealed through corporate or other structures.

The latest exercise follows an earlier forensic investigation commissioned by the CBE through South African firm Cliffe Dekker Hofmeyr (CDH), following a Parliamentary resolution to investigate Ecsponent’s failure to meet its obligations to investors.

The recovery process was subsequently placed under a tripartite task team comprising the CBE, Ministry of Finance and Financial Services Regulatory Authority (FSRA).

The CBE says its analysis of the forensic material indicated that Ecsponent funds were allegedly transferred to South Africa and allegedly disguised as loans to related companies to circumvent a requirement for at least 50 per cent local investment.

The report says the funds were on-lent to related entities, including GetBucks Eswatini, GetBucks South Africa and Ecsponent South Africa.

The bank says the task team considered the movement of funds to be concealment of their true source and destination and to constitute money-laundering activity. It described the alleged conduct as serious criminal activity bordering on fraud and theft. These are findings and characterisations contained in the CBE-led recovery process and would ultimately require determination through the appropriate legal processes.

The CBE then engaged senior counsel to advise on the legal and regulatory options available for pursuing recovery.

According to the report, the senior counsel brought in experts who had previously worked for South Africa’s Asset Forfeiture Unit.

The legal advice, as recorded by the CBE, was that individuals involved in Ecsponent could potentially face prosecution under Eswatini’s Prevention of Organised Crime Act and Money Laundering and Financing of Terrorism Act.

Senior counsel also recommended exploring asset-forfeiture proceedings. The CBE subsequently decided to explore both conviction-based and non-conviction-based asset forfeiture in jurisdictions where Ecsponent-linked funds or assets were believed to be located.

These include South Africa, Botswana, Zimbabwe and Mauritius, with Luxembourg and other offshore jurisdictions also identified as possible destinations.

For now, however, the bank has limited the forensic exercise to South Africa because of cost implications.

A three-phase forensic analysis framework has been proposed to investigate individuals and entities that allegedly benefitted directly or indirectly from Ecsponent funds. The current exercise is expected to produce a feedback report around October 2026.

The CBE says successful authentication of bank statements, funds tracing and asset identification in South Africa could result in preservation and forfeiture orders against assets linked to Ecsponent and could also reveal assets in other jurisdictions. The bank is working with the Anti-Corruption Commission (ACC), Royal Eswatini Police Service, Director of Public Prosecutions and South Africa’s National Prosecuting Authority on the matter.

The CBE says the recovery process remains complex because any asset-forfeiture proceedings could be contested, particularly where assets are spread across several jurisdictions.

It has, therefore, warned that there can be no guarantee on either the timing or quantum of any eventual recovery.

The recovery task team was established after Parliament called for mechanisms to assist Ecsponent investors to recover their investments. Government said in 2025 that it was pursuing legal avenues to recover the funds, while cautioning that the process would take time. The CBE says it remains committed to pursuing all reasonable legal avenues to maximise the prospects of recovering funds for affected investors.

Parliament demanded the investigation in response to public concern after more than 1 000 emaSwati lost more than E340 million invested in Ecsponent Eswatini. The CBE appointed Cliffe Dekker Hofmeyr (CDH) to determine whether Ecsponent conducted its business affairs, including any investment schemes, in line with the Securities Act and the Financial Services Regulatory Authority Act 2010.

It also sought to determine whether Ecsponent’s directors had authority to act for the company and whether all investment decisions were backed by Board resolutions and effected through authorised signatories in line with the company’s governance manuals and procedures.

Furthermore, the forensic had to investigate and ascertain whether Ecsponent’s directors conducted proper due diligence assessments before placing investments.

The investigation also had to ascertain the source of Ecsponent’s assets and where they were subsequently invested and the investment method(s) that were utilised.

CDH also had to determine whether Ecsponent could meet its financial obligations by paying the promised returns to investors. It was further required to trace the flow of funds and establish whether it involved possible money laundering, fraud or other irregular transactions.

The request for proposals required CDH to investigate whether Ecsponent had placed investments irregularly with its investment managers and foreign subsidiaries.

The forensic investigation also sought to determine whether assets were invested in line with Ecsponent’s investment policy and whether all assets were accounted for in its books. In its recommendations, the CBE acknowledged the significant financial losses incurred by innocent Ecsponent investors and recognised stakeholder initiatives aimed at helping them recoup their assessed losses.

It said the CDH report formed the basis for a second phase of the probe, involving law-enforcement agencies working with their South African counterparts and using existing SADC protocols on mutual legal assistance in criminal matters. The CBE said the protocols could assist in recovering assets in South Africa or the region that may have been purchased by beneficiaries of Ecsponent Eswatini funds.

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