By Bahle Gama
The son of late businessman Dumisa Dlamini is alleging that the late former Managing Director of the EswatiniBank Stanley Matsebula had a hand in defrauding his father’s insolvent estate.
The son, Makhosemvelo submitted before the Judicial Commission of Inquiry of the Master of the High Court that the bank had allegedly been in contempt of a court judgement and criminal conduct.
He stated that on September 4 at the office of the Master of the High Court, five senior high-level officials consisting of attorneys and bank representatives lodged a fraudulent claim amounting to E13.8 million against his father’s estate.
He alleged that the claim made by the bank was fraudulent because it was common cause that on December 3, 1999, the Court of Appeal altered a High Court Judgement handed down by then Chief Justice Saphire.
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The judgement stated that the bank’s senior counsel at the time identified as Wise had informed the court that after the High Court Judgement, it was discovered that E2.6 million had been wrongly debited.
Makhosemvelo told the Commission that the Court of Appeal upheld the wrong judgment to the sum of E11.2 million.
“However, EswatiniBank opted to disregard the Court of Appeal Judgement and proceeded in contempt. This was not only deceitful but the Commission should be moved to articulate its outrage and displeasure,” he said.
He further stated that it was the bank that had asked the court to alter the judgement and had also violated it for reasons set out in the deed of settlement.
According to Makhosemvelo, the bank allegedly proceeded to unlawfully dispose of the assets and properties of the estate to its prestige clients in disregard of the court.
He further claims that the bank unlawfully disposed of property without the required approval and consent of the general body of creditors and Master of the High Court who had complete control of the estate assets and properties.
The properties were eight and were valued at E132.2 million, however, the bank allegedly disposed of them at E57.03 million, below their market value, thereafter, registering mortgage bonds over the properties.
“What the bank was doing was double profiting on the same transaction. It can be assumed based on the evidence that EswatiniBank pocketed over E114.06 million through its fraudulent scheme and unlawful disposal of the properties,” submitted Makhosemvelo.
He further stated that the valuator told him had the properties not been interrupted, the market value as of February 2012 would have been E231.4 million.
He further submitted that on July 17, 2020, a “bold move” was made by former MD Zakhele Lukhele who conceded that the E13.8 million claim lodged was indeed fraudulent.
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“The claim lodged by his predecessors before Master was deemed fraudulent and he moved swiftly to lodge a new claim by way of an affidavit under oath for E11.2 million, 16 years after the insolvency process had commenced,” he submitted.
He brought the Commission’s attention to the huge difference which the bank had to arrive at E11.2 million, whilst indicating a shortfall of E5.7 million from a surety alleged by the bank.
This he said was based on the bank’s claim affidavit lodged that there was a E4.1 million shortfall difference to arrive at the E11.2 million.
“On Matsebula’s version, there is a huge shortfall difference of E5.6 million. It is of great importance that the bank delivers the supporting documentation to the ‘Master’ and the trustee. What is an issue is the bank did not have approval and consent from Master who had oversight control and legislated authority over the insolvent estate and its property,” he said.
According to Makhosemvelo, this conduct has prejudiced his father’s estate from being winded up, adding that the properties sold had been placed under the administration and care of the ‘Master’ and the then trustee.
