MBABANE – Its bad news for the 2 000 members of the public, who invested over E27 million in first Sukke OnTime Investments (Pty) Ltd.
The liquidator, Kobla Quashie, in a meeting held at the High Court on Thursday, informed the investors that he was unable to recover any funds or assets.
This, in essence, means that there is nothing to salvage from the liquidated companies, which were under the directorship of Machawe Gama, the Director of Sukke OnTime Investments (Pty) Ltd. His other companies are Sukke Logistics (PTY) Limited, Sukke Construction (PTY) Limited and MTG Investments (PTY) Limited.
Quashie advised the about 500 investors who had attended the meeting, to approach the nearest regional police headquarters to lay criminal charges against the director of the companies. Among those who invested are civil servants, former politicians, businesspeople, pensioners and individuals. During the creditors meeting, Quashie highlighted that in his investigation into the status of the company, he also involved the Royal Eswatini Police Service (REPS), Financial and Economic Crimes Unit, Department of Money Laundering and Assets Forfeiture, which was currently working on the matter.
“The police investigation is still ongoing and creditors are requested to formally approach the Anti-Money Laundering Unit in the four regions of the country to lay a charge of theft against the director of the entities. “Kindly ensure that you carry with you supporting documents,” said the liquidator. He told the crestfallen investors that, following the previous report of preliminary investigations, he was able to dig further into the affairs of the entities under liquidation.
“During preliminary investigation, money laundering activities were detected, hence on December, 2021; an enquiry docket was opened and was given E/F No. 7402021 at the Manzini Police Station. The docket was assigned to the Financial and Asset Forfeiture Department to investigate the suspicions of money laundering activities,” reads part of the report. The investors who had gathered at Court B of the High Court left the premises disconsolate after the sad news were related to them by the liquidator. The meeting was chaired by Deputy Master of the High Court Lindelwa Magagula, who is an admitted lawyer of the High Court.
In his report titled ‘Report to First Meeting of Creditors’, the liquidator stated that the refusal of the director of Sukke OnTime Investments (Pty) Limited, Machawe Gama, to meet him to present his state of affairs and that of his companies amounted to flouting of a court order. He said Gama must be sanctioned for this.
The liquidator went on to state that given the affidavit of the registrar of companies on the existence of the four companies that were to be liquidated, the court order could only be executed in respect of Sukke OnTime Investments (Pty) Limited and MTG Investments (PTY) Limited.
He found that the two entities did not exist. In his opinion, the liquidator stated that it might be that Gama was trading through Sukke OnTime as Sukke Logistics and Sukke Construction. Quashie brought it to the attention of the investors that he was unable to see any trading licence in that regard.
In his investigations, the liquidator found that the liquidated entities were not trading at the time of liquidation, as their business premises were closed and vacated in March 2020. “In the circumstances, one concluded that the liquidated entities had no formal trading operation at the time of the liquidation order that was issued by the High Court on December 7, 2020,” reads part of the report. He further pointed out that as at February 21, 2021, the two companies had a total of E300 614.60 in their bank accounts with First National Bank (FN) Eswatini. He said he had not accessed the funds in the accounts.
According to the liquidator, MTG Investment entered into two purchase of land agreements with ABS (1990) PTY Limited for a total of E4 171 200. He said it was uncertain if the purchase agreement was fulfilled as the land was never transferred and the seller was reluctant to provide full disclosure on the transaction. “However, as revealed by the Central Bank of Eswatini, a total of E2 277 100 had been paid for land from depositors’ funds and there is a need for further investigations,” said Quashie. In his report, he went on to state that motor vehicles that were attached in terms of the court on November 15,2019, by Deputy Sheriff Musa Mavuso, could not be traced.
He told the investors that police investigations at the Motor Registry Department revealed that the attached motor vehicles were transferred to third parties using transfer forms signed by Gama. He went on to mention that the core business of the liquidated entities was the sale or lease of photocopies. Quashie said: “I could not find a single photocopier or lessee of these copiers. This fact is also confirmed in the Central Bank of Eswatini report as no repayments from lessees could be traced in the bank accounts.” He said during his investigations, he discovered that there was no furniture belonging to the liquidated entities.