By Lwazi Dlamini
With guns blazing, the First National Bank (FNB) Eswatini has defended itself against the loss of E340 million belonging to over 1,000 emaSwati in the much-publicized Ecsponent scandal.
The Parliament Select Committee which was mandated to scrutinize and analyze the Cliffe Dekker Hofmeyr Inc (CDH) Forensic report, in its report adopted in Parliament a fortnight ago, punched holes in the anti-money laundering effectiveness of the bank in flagging possible money laundering activities, if any, on the flow of the Ecsponent funds, which were transferred from Eswatini to South Africa.
“The Ecsponent Eswatini funds were moved primarily through First National Bank, which has a general responsibility to monitor transactions for compliance with anti-money laundering purposes.
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As part of the general monitoring process, commercial banks are expected to report suspicious transactions reports (STRs) to the Eswatini Financial Intelligence Unit, which would in turn be expected to disseminate such STRs to law enforcement agencies,” the report of the Select Committee reads in part.
In a press statement, FNB, through its Compliance Officer, Panuel Gwebu has stated that they discharged all regulatory obligations and made all proactive disclosures to the relevant authorities as required by law.
“As guided by our regulatory and legal obligations, we are not allowed to disclose any information on our clients to any third party other than as prescribed by law,” read part of the statement by the bank.
The bank statement further clarifies: “FNBE is a regulated financial institution that fully subscribes to applicable laws in Eswatini.
Our respect for client confidentiality is paramount and where in need regulators are engaged timely. Where any action requires the involvement of other stakeholders including law enforcement, such action is taken and in this case, has been taken.”
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The Parliament Select Committee has recommended that George Manyere, Dave Van Niekerk and the Financial Services Regulatory Authority (FSRA) should pay the principal amount of the investments that were made through Ecsponent.
In the report which was tabled in Parliament about a fortnight ago, the Committee met with over 15 stakeholders including the South African businessman Dave Van Niekerk, who is cited many times in the Ecsponent saga, George Manyere,
who is a former Ecsponent Chief Executive Officer and the Financial Services Regulatory Authority (FSRA) which licensed Ecsponent and other investment entities that are linked to the E340 million loss.
