By Siphesihle Dlamini
FORMER Chief Executive Officer of the Financial Services Regulatory Authority (FSRA), Sandile ‘Chief’ Dlamini, made his maiden appearance at Mbabane Magistrate’s Court on Thursday facing six corruption charges related to his tenure at the regulatory body emanating from the Ecsponent matter.
The court ruled that Dlamini will be remanded in custody until March 28, 2024, pending further legal proceedings.
The former CEO faced allegations of corruption relating to the infamous Ecsponent and Status Capital Building Society scandal where emaSwati lost a combined E340 million.
Dlamini’s first charge alleged that he abused his position of authority by licensing Ecsponent as an investment advisor in violation of prescribed FSRA procedures. It was further revealed that he allegedly accepted a substantial payment of E117 000 from Escalator/Ecsponent, implicating him in acts of corruption and bribery.
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The second charge against the former FSRA CEO involved the improper licensing of Status Capital as a Building Society, despite objections raised by the Minister of Finance, showcasing a pattern of disregard for regulatory protocols.
He was also charged that between 2014 and 2020, he allegedly issued a license to Status Capital as a Building Society in circumstances where Status Capital had not yet qualified to be so licensed and in return, accepted a directorship of Status Capital.
This was in contravention of the prescribed procedures as laid down by the Building Society’s Act, of 1962 and the FRSA Act, of 2010.
Furthermore, Dlamini was accused of contravening money laundering and financing of terrorism laws by concealing the origin of funds received from Escalator/Ecsponent into his personal bank account, painting a picture of financial impropriety.
By so doing, Dlamini contravened Section 4 of the Money Laundering and Financing of Terrorism (Prevention) Act of 2011 alternatively contravening Section 4 (1) (b) read with Section 76 of the Money Laundering and Financing of Terrorism (Prevention) Act of 2011.
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The former CEO’s legal troubles extended to tax evasion allegations, with charges stating that he failed to disclose the payment of E117 000 received from Escalator/Ecsponent, thereby attempting to evade tax obligations in a blatant disregard for fiscal responsibilities, contravening Section 66 (2) (c) read with Sections 7 and 11 of the Income Tax Order, 1975.
It is said that the accused contravened Section 66 (1) (a) read with Sections 7 and 11 of the Income Tax Order, 1975, in that during the tax year of 2014/2015, the accused, being a registered taxpayer, failed and/or neglected to furnish or file or submit his tax return in respect of the above-mentioned tax year and did thereby contravene Section 66 (1) (a) of the Income Tax Order, 1975.
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Just a month after Prime Minister, Russell Dlamini appointed an anti-corruption task team, it made its first arrest, nabbing former FSRA CEO on Wednesday morning.
The news of the arrest spread like wildfire after he was apprehended and detained at Mbabane Police Station on Wednesday morning.
The former FSRA CEO’s name featured prominently in a letter of demand drafted by ESW Investments lawyers, S.V Mdladla & Associates sent to FSRA demanding a sum of E340 million in interest.
The former CEO was cited in the letter together with Dave van Niekerk, Edwin Soonius, Zelda Viljoen, Terrence Gregory, Hendrick Jacobus Van der Merwe, Anton Hay, Lindiwe Vilakati and others.
In the letter of demand, it was claimed that he had an illicit relationship with the individuals who were the directors and were in control of Ecsponent at the time, either directly or indirectly and he was FSRA CEO when the organization sanctioned the License of Status Capital Building Society.
The letter also alleged that there was proof of payments made to the account of the former FSRA CEO’s account which could not be supported.
