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Showing posts with label Dlamini Sihle. Show all posts
Showing posts with label Dlamini Sihle. Show all posts

Friday, 16 September 2022

Swaziland Newsletter No. 744 – 16 September 2022

 

Swaziland Newsletter No. 744 – 16 September 2022

News from and about Swaziland, compiled by Global Aktion, Denmark (www.globalaktion.dk) in collaboration with Swazi Media Commentary (www.swazimedia.blogspot.com), and sent to all with an interest in Swaziland - free of charge.

Unrest claims 63 lives since June 28 2021

By Timothy Simeane, eSwatini News (print edition), 10 September 2022

 

MBABANE: The ongoing political unrest has claimed the lives of 63 people since June 28 last year.

To stop the continued bloodshed, the country’s Commission on Human Rights, which plays the role of public protector, is taking steps to ensure that those behind the killings were brought to justice.

The number includes the 46 killed during the June/July, 2021 political unrest as well as those that have been killed in the past 13 months.

The notion that the deaths were politically motivated comes from the causes of deaths and how most have been claimed by forces linked to the calls for democratic changes.

All 17 deaths between July 2021 and September 2022 were fresh incidents and do not emanate from the injuries of June 28 and June 29. At least seven of those killed in the past 13 months were members of the security forces – the Royal Eswatini Police Service (REPS) and Umbutfo Eswatini Defence Force (UEDF)

In October last year the Commission for Human Rights and Public Administration (CHRPA) released for public attention a report which stated that there were 46 people shot dead in only two days between June 28 and 29. Of these, two were children, five women, seven youths, two elderly citizens and 30 men. It had also stated that the total number of people who took a bullet during the upheavals was 291. He said his report used a verification process and not investigation to arrive at the figures. This meant the report did not cover people who suffered injuries, died in accidents or through assaults.

The number could be much more, assuming some of those who were shot with live bullets in confrontations had later succumbed to the injuries months later.

Civic Organisations have, however, continued to claim that the number of people killed during the political unrest had exceeded 100. This is despite that the information had not been verifiable.

Asked to give direction on how the bloodshed could be stopped, Commissioner of the Commission for Human Rights and Public Administration Sabelo Masuku, said the answer lied with the recommendations of the report compiled by his organisation.

One of the recommendations was that the Government of Eswatini should immediately take concrete steps towards reconciliation and pave way towards a constructive and all inclusive dialogue to identify and resolve the root cause of the unrests.

Though the Southern African Development Community (SADC) Troika on Politics Defence and Security made a similar recommendation, the country had not had a dialogue. Authorities said last month that the environment was not yet conducive for the dialogue.

Reads the recommendation: “Those responsible for causing deaths must be investigated and brought before the law. Initiate an independent, thorough, credible, transparent and impartial investigation by experts with relevant skills and knowledge into allegations of human rights violations and abuses, and to bring those responsible to justice.” However, since the upheavals, only civilians had been hauled to on various charges ranging from malicious injury to property, public disturbance, terrorism related charges and others. None of the security personnel were ever charged for the killings of civilians who did not take part in violent protests.

The Commission also recommended that the State must ensure full exercise of the right to peaceful assembly and protest, in accordance with the Eswatini’s Constitution and international obligations. It also called upon the State to use all appropriate means to ensure that these rights can be exercised freely and securely, “including by making sure that the safety of demonstrators is guaranteed; to ensure the protection of the human rights and fundamental freedoms of all persons, such as women and children; and to ensure that any restrictions on those freedoms respect the principles of legality, necessity and proportionality.”

The Commission also recommended that REPS and other security agencies should be equipped with adequate material means to manage public protests, where they must maintain or re-establish public order, to remove lethal weapons and to authorise the use of force only as a last resort and in compliance with the principles of necessity, proportionality and legality, in accordance with international standards.

SWALIMO National Spokesperson Thantaza Silolo said dialogue was the only means to end the bloodshed.

“We want democracy, but there is an elephant in the room, which is the security forces that are being used to brutalise emaSwati.”

Silolo said the majority of people who were killed were not political activists, but just emaSwati who fell victim in an unfortunate manner.

 

Senate President Lindiwe Dlamini looted over R600,000.00 in multi-million donated COVID-19 funds

By Zweli Martin Dlamini, Swaziland News, 12 September, 2022

SOURCE

 

MBABANE: Senate President Lindiwe Gwebu Dlamini allegedly looted over six hundred thousands Rands (R600,000.00) in the multi-million donated COVID-19 funds.

The monies were donated by private companies and international organizations, however, Government failed to purchase vaccines and other equipment after the looting that resulted to Swazis loosing their lives during the pandemic.

On Monday, the Times of Eswatini reported that Dlamini’s Hotel, the Bethel Court situated at Ezulwini received six hundred and forty-six thousands, six hundred and forty nine Rands(R646,649.00)in respect of accommodation services.

The Senate President who recently urged the Prime Minister to deal with protesting poor Swazis allegedly violated provisions of the Prevention of Corruption Act, she is the upper House of Parliament (Senate)that approves a budget for Cabinet and further demand accountability in the utilization of public funds.

A questionnaire was sent to the Senate President, however, she had not responded at the time of compiling this report.

Reached for comment, former Deputy Senate President Ngomyayona Gamedze, the Sive Siyinqaba Acting Chairman said there was a law prohibiting politicians from doing business with Government and State owned entities.

“Parliament is a watchdog, Government accounts to the people through Parliament. Now that it has been disclosed that she benefitted from COVID-19 tenders, can she stand-up in Parliament and ask the Prime Minister why Lindiwe was awarded a tender? Can she demand accountability of her own corrupt dealings? Njengoba abhizi nje kulamalanga abuta Prime Minister kutsi bantfu labafuna inkhululeko bayekelwelani bangaboshwa, angasukuma yini nyalo abute Ndvunankhulu kutsi ninginikeleni mine le-tender, atisho yena?”, said the former Senate Deputy President.

 

Private sector not creating enough jobs

By Sifiso Nhlabatsi, eSwatini Observer, 13 September 2022

SOURCE

 

The private sector is not creating enough jobs to reduce unemployment and poverty, especially for women and the youth.

This is according to International Finance Corporation (IFC) Economist Zivanemoyo Chinzara, who was speaking during the launch of the Country Private Sector Diagnostic (CPSD) report by World Bank and IFC.

Chinzara said the private sector reflected a dual structure with a few large firms and state owned enterprises (SOEs), and a majority of low productivity informal firms.
He said there was a falling aggregate firm productivity between 2007 to 2016, except for manufacturing firms.

The economist said there was weak job creation as the formal sector only created about 1 000 jobs per year, yet young labour force was growing by 25 000.

He said informality dominates the labour market, accounting for 61.9 per cent of the total employment.

“MSMEs represent 40 per cent of employment, but are mostly in low productivity and earning activities. Women are more likely to own micro enterprises.


Reverse the fall in investment and productivity, reignite inclusive growth and job creation within a constrained fiscal space, and domestic and regional uncertainty for investors,” the economist stated.

Minister of Commerce Industry and Trade Manqoba Khumalo said Eswatini can harness the power of the private sector to stimulate a more resilient, greener and sustainable growth model, by attracting investments in renewable energies.

The Eswatini Country Private Sector Diagnostic report highlighted reforms needed to increase Eswatini's competitiveness to unlock export potential and increase the private sector participation to sustainably grow its economy.

The CPSD report suggested strengthening the trade and regulatory environment and reducing the state footprint in sectors that can be better served by the private sector.
It also encouraged private participation in key enabling sectors like telecommunications and energy.

 Another recommendation made by the economist was that there was a need to host private sector forums to understand bottlenecks to supply chain investments.

 

No freedom of speech: Swazi MPs banned at EBIS radio

By Eugene Dube, Swati Newsweek, 13 September, 2022

SOURCE

 

LOBAMBA: Eswatini lawmakers’ political program known as Tase Phalamende is no longer aired on the national radio.

This was a live programme where the nation would follow live debates happening in Parliament.

As the winds of change blow to shake King Mswati III’s throne, through his principals at Eswatini Broadcasting Information Service (EBIS) he banned progressive lawmakers who are taking advantage of the programme to enlighten the Swazi people about the evils of the Swazi Royal family and the failure of the Swazi monarchy.

In an interview with this Swati Newsweek Online yesterday, Mtsambama member of Parliament Simosakhe Shongwe confirmed the suspension of the radio program. “Our program Tasephalamende has been censored by the Swazi authorities and EBIS decided to stop the programme.

“We no longer have freedom of expression in this country. Our people can no longer hear us talking and addressing important issues on the radio. The closure of our program at EBIS means management protected someone, that is the reason why we need change in this country. Swazis should determine their destiny,” said Shongwe.

He also criticized the rumour mongers who want to influence authorities to extend the term of office of the Swazi MPs.

He said authorities have a bad tendency of failing to address issues. There is no need to extend term of office for the lawmakers. I believe the looming extension is unjust to the Swazi Nation.

“We have to tackle our issues head on. The rumour to the effect that our term of office might be extended, is a bad rumour We need the elections. There is absolutely no need to keep this parliament,” he said.

He said authorities must not postpone the election to avoid addressing the contentious issues of political change.

He explained, “We have to sit down with all the people and address our politics. It is wrong to extend the term of office for the lawmakers.

“Some of us speak the same language the arrested lawmakers Bacede Mabuza of Hosea and Mthandeni Dube of Ngwempisi are speaking,” he added.

 

King’s Secretary Sihle Dlamini involved in multi-million money laundering scam, ACC sabotaged investigations

By Zweli Martin Dlamini, Swaziland News, 13 September 2022

SOURCE

 

MBABANE: King’s Secretary Sihle Forward Dlamini has been implicated in a multi-million money laundering scandal, due to his political influence, an investigation was allegedly sabotaged by the castrated Anti-Corruption Commission (ACC).

This disclosure comes after this publication exposed how the King’s Secretary facilitated the looting of over R100million on behalf of Mswati in respect of mineral deals.

It has been disclosed that Sihle Dlamini was investigated by the Anti-Corruption Commission (ACC) for alleged corruption, however, the investigation was subsequently sabotaged and the ACC failed to respond to our questions on the matter despite several attempts.

Now, it has emerged that apart from the R100 million looted from Salgaocar Mine, the King’s Private Secretary allegedly violated provisions of the Money Laundering Act by depositing highly questionable cash amounting to millions to his over seven(7)personal accounts held at NedBank Swaziland, Standard Bank and the First National Bank(FNB).

An independent investigation conducted by this Swaziland News uncovered that Dlamini (45), was a holder of Nedbank Current account 30000209259 that was opened on the 26th November 2007, its turnover was approximately R1 753 206.53 for the period of 14 September 2018 to 02 November 2018. 

It has been disclosed even though a large portion of the money came through corrupt dealings linked to King Mswati, part of the money was paid to Dlamini as bribes by people who wanted to seek an audience with King Mswati for political appointments in the election year of 2018.

On or around 2nd November 2018, the King’s Secretary personally deposited cash amounting to four hundred thousand Rands (R400,000.00) and three hundred thousand Rands(R300,000.00), he then made a transfer of R990,675.73 to Hawane Retirement Funds.

A questionnaire was sent to King’s Secretary Sihle Dlamini, however, he had not responded at the time of compiling this report.

But in a recent public address, the King’s Secretary challenged those who accused him of stealing public funds to provide evidence.

“I am a businessman and I was born from a business family. Anyone who accuses me of stealing public funds must provide evidence,” he said.

It has been disclosed that Dlamini’s seven ( 7) accounts with Standard Bank as follows and include a Call Account number 9110003319523(over R15,000.00), Premium Call Account number 9110001561130 with over R2,244 519.39, Premium Call Account number 9110003151134 with a balance R709,123.86.

Other accounts include a Pure Save Account number 9110000942882 with a balance of R2,281 305.02, Private Banking Cheque Account number 9110002607002 with a balance of R31,020.86, Home Loan Account number 9110001515031 with a loan of R1,656 000.00 and another home loan account number 9110000519459 with a loan of R1, 050 000.00.

Reached for comment, Mandla Hlatjwako, the Chairperson of Letfu Sonkhe Institute for Strategic Thinking and Development said it was very hard to even comment and entertain Sihle because the Nation is now aware that those around the King including Dlamini have embarked on looting.

“Even their leader (King) is no longer a King but a head of a mafia that is protecting the interest of his family and those around him. Now, Sihle is busy talking because he is protecting his interests and that of the King because he is benefiting. They are laundering millions to other countries while the people are suffering,” said the Letfu Sonkhe Chairperson.

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Friday, 11 May 2018

KING TAKES US$10m FROM IRON MINE

Swaziland’s absolute monarch King Mswati III took US$10 million from an iron ore mine for his personal use months before it collapsed with debts of US$4 million putting 700 people out of jobs.

It was described as a ‘loan’ but the money was never repaid.

It happened at the Ngwenya Iron Ore Mine which was owned by SG Iron Ore Mining (PTY) Ltd. (previously called Salgaocar Swaziland (PTY) Ltd). SG Iron was 50 percent owned by Southern Africa Resources Ltd (SARL), the King held 25 percent ‘in trust for the Swazi nation’ and the Swaziland Government owned a further 25 percent.

King Mswati took a US$10 million loan from the company less than six months after it started trading which he refused to pay back when it hit difficulties. 

The mine was forced to cease trading in August 2014 after a series of events orchestrated by Sihle Dlamini, Director Administration at the King’s Office and Assistant Private Secretary to the King. He was also the King’s personal representative on the SG Iron board of directors.

In June 2011, King Mswati, who as absolute monarch in Swaziland has sole control over mining rights in the kingdom, granted SG Iron a Mining Lease for seven years. The company agreed to pay the King ‘in trust for the Swazi Nation’ a royalty of 3 percent. It also gave the King 25 percent of the total company issued share capital at no cost. It also gave a further 25 percent of the issued share capital to the Swaziland Government, again at no cost. The remaining 50 percent of issued share capital went to SARL.

The King holds shares ‘in trust for the Swazi Nation’, but it is widely reported outside of Swaziland that he has also received millions of dollars from international companies such as phone giant MTN; sugar conglomerates Illovo and Remgro; Sun International hotels and beverages firm SAB Millerto, which he spends on himself and his family. 

The King, who rules over an impoverished kingdom of only 1.1 million people, has 13 palaces, two private jets and a fleet of top-of-the range BMW and Mercedes cars. At his 50th birthday party on 19 April 2018 he wore a watch worth US$1.6 million and a suit studded with diamonds. Meanwhile, seven in ten of his subjects exist on incomes of less than US$2 per day.

SG Iron’s stated goal was to reprocess iron ore dumps at Ngwenya left over by the Anglo American Mining Company in the late 1970’s, when it ceased mining operations in the area, and to secure the main mine lease for 30 years once the iron ore dumps had been cleared. 

It was agreed SARL, being the 50 percent shareholder of SG Iron, had management control of SG Iron, which was in charge of, and responsible for, day-to-day running of SG Iron. SG Iron put up approximately US$50 million to start the mining operations and added further capital. The King and the Swaziland Government made no financial contributions.

The official inauguration of operations was on 21 October 2011 with the dispatch of ore to Maputo Port in Mozambique. On 21 December 2011, the first shipment was carried out from Maputo Port and on 9 March 2012, a rail services from Mpaka to Maputo Port, Mozambique, started.

Less than six months after operations began, King Mswati, through his representative Sihle Dlamini, asked for and received an advanced payment / loan of US$10 million on the King’s future dividend. This was at a meeting of the Board of Directors of Salgaocar Swaziland held in Mbabane, Swaziland, on 16 April 2012. The money was to be repaid from future dividends payable to the King. 

There was no public announcement made that the King received the money which he held ‘in trust for the nation’ and it is not known how he spent it. This later fuelled speculation that he had used the money to fund his own personal lavish lifestyle. 

On 21August 2014 Sihle Dlamini, representing the King at SG Iron, wrote to the CEO of SG Iron, Sivarama Petla, instructing him not to sell any more cargo. He did this without consulting the major shareholder, SARL. Since that day all attempts by SG Iron to sell cargo were blocked.

Contrary to the terms of the Mining Lease, the Board of Directors was not consulted about the decision to stop sales of iron ore. The Chairman Shanmuga Rethenam who was to chair all board meetings under Article 6.7 of the Mining Lease, and who also possessed a right of veto, was not even informed of the King’s decision.

In October 2014, in a founding affidavit at the Swaziland High Court to have the company placed under Judicial Management, Sihle Dlamini would state that a shareholders’ dispute at SARL in Singapore had made it impossible for management decisions to be taken at SG Iron. He also stated that the fall in the world price of iron ore had made production at the mine uneconomical.

Blocking the sale of iron ore meant no trade could take place and SG Iron’s operations were brought to an abrupt standstill. Since no money was coming into the company from the sale of cargoes there was a cash-flow crisis. 

Sales could have resumed at any time because more than 100,000 tonnes of iron ore remained at Maputo Port, Mpaka Railway Siding and at the Mine Stockyard. In a High Court affidavit in October 2014, Sihle Dlamini revealed he had given instructions for ore to be stockpiled until the price of iron ore recovered.

SARL also requested that the King repay the full or part of the US$10 million loan / advance dividend to allow SG Iron to continue operating. The King refused to do this, instead the King’s representative Sihle Dlamini demanded that SARL inject more capital into the business, something it would not do while shipment of cargoes remained blocked.

SARL would say in January 2015 that it felt it had been held hostage by the King’s representative’s decision to unilaterally stop all shipments of cargo.

On 22 September 2014 at a board meeting of SG Iron held in Mbanane, Sihle Dlamini representing the King and Mbuso Dlamini, representing the Swazi Government, expressed dissatisfaction at the status of the company, saying that a shareholder dispute at SARL was impacting on SG Iron, something which was disputed by SG Iron.

The two men gave an ultimatum that fresh funds should be injected into the project no later than 26 September 2014. The Chairman of SG Iron, appointed by SARL, was present at this board meeting, and he requested that management allow the sale of the cargo, which would release sufficient funds to keep the company operating.

SARL again requested that the King should, ‘for the good of the company’s workers, its shareholders and the kingdom of Swaziland’, repay the full or part of the US$10 million loan / advance dividend to allow the continued operation of SG Iron. Sihle Dlamini, the King’s representative, refused.

Subsequent to the meeting, Sihle Dlamini, representing the King, asked SARL to wipe out the US$10 million loan.

In a letter dated 29 September 2014, SARL refused to write off the King’s debt. SARL said in January 2015 that in response to this, Sihle Dlamini took a unilateral decision to stop operations and place the company into Judicial Management and then liquidation. This decision was taken without discussions with the major shareholder or considering the voting rights in place at SG Iron.

On 3 October 2014 Sihle Dlamini representing the King and Mbuso Dlamini, representing the Swaziland Government, called for a meeting of the Board of Directors and despite being told by the Chairman of the Board Shanmuga Rethenam that he could not attend, they went ahead with the meeting without him.

This was the first Board Meeting that had been held without the Chairman’s presence in the history of SG Iron. Sihle Dlamini, the King’s representative, served as the Chairman of the meeting, although he represented only 25 percent of the company’s share capital and SARL, the 50 percent shareholder, was supposed to have control of the board.

Sihle Dlamini and Mbuso Dlamani both resolved to place SG Iron under Judicial Management, without seeking the Chairman’s consent, rather than permitting operations and cargo sale to continue.

SG Iron was placed under provisional Judicial Management by an Order of the High Court of Swaziland dated 10 October 2014. On the request of the Judicial Manager the Court ordered the provisional liquidation, or winding up, of SG Iron by an Order dated 16 December 2014.

As a result of the closure King’s US$10 million dividend / loan was written off. The closure of the mining project cost 700 people their jobs in Swaziland and it was estimated that several hundred jobs were also lost at the Port of Maputo, Mozambique

See also 

HOW KING DESTROYED AN IRON MINE
SWAZI KING AND QUEENS OF BLING
KING WEARS WATCH WORTH US$1.6-million
KING WEARS SUIT BEADED WITH DIAMONDS
SWAZI ROYALS SPEND, SPEND, SPEND
https://swazimedia.blogspot.co.uk/2018/05/swazi-royals-spend-spend-spend.html

Tuesday, 21 March 2017

KING WANTS TO REVIVE NGWENYA MINE

King Mswati III is encouraging Indian investors to reopen the Ngwenya iron ore mine in Swaziland that was forced to close in 2014 after he looted US$10 million from it.

The King stands to take 25 percent of the shares in any company that takes up his offer.

The King, who rules Swaziland as sub-Saharan Africa’s last absolute monarch, made his offer during a trip to India earlier in March 2017.

The King and his personal representative Sihle Dlamini were at the very heart of events that led to the collapse of the mining company SG Iron at the Ngwenya Iron Ore Mine in 2014. It had debts of US$4 million when it closed and more than 700 jobs were lost. King Mswati took a US$10 million loan from the company less than six months after it started trading which he refused to pay back when it hit difficulties. 

A compensation claim for at least US$141 million was later prepared by Southern Africa Resources Ltd (SARL), against the Kingdom of Swaziland at the International Centre for Settlement of Investment Disputes (ICSID).

SARL held a 50 percent stake in SG Iron Ore Mining (PTY) Ltd (SG Iron), which had formerly been known as Salgaocar Swaziland (PTY) Ltd. The Swaziland Government held 25 percent of the shares and the King personally held 25 percent ‘in trust for the nation.’ 

The mine was forced to cease trading in August 2014 after a series of events orchestrated by Sihle Dlamini, who is Director Administration at the King’s Office and Assistant Private Secretary to the King. He was also the King’s personal representative on the SG Iron board of directors.

Here is a step by step guide to what happened.

30 September 2010
SG Iron Ore Mining (PTY) Ltd. (when it was still called Salgaocar Swaziland (PTY) Ltd), was registered in accordance with the laws of Swaziland on 30 September 2010 under Certificate of Incorporation No.1196, with its principal business of operations at the Old Ngwenya Mine, Ngwenya, in the Hhohho district of Swaziland.

SG Iron’s stated goal was to reprocess iron ore dumps left over by the Anglo American Mining Company in the late 1970’s, when it ceased mining operations in the area, and to secure the main mine lease for 30 years once the iron ore dumps had been cleared. 

Due to advancements in technology, it had become scientifically possible to process the dumps and upgrade them into sellable grade ore. This project would create new jobs in Swaziland, while creating a new source of wealth for Swaziland, as well as clearing Swaziland of the dumps left by the Anglo American Mining Corporation and restarting mining activities.

30 June 2011
King Mswati, who as absolute monarch in Swaziland has sole control over mining rights in the kingdom, granted SG Iron a Mining Lease for seven years. The company agreed to pay the King ‘in trust for the Swazi Nation’ a royalty of 3 percent. It also gave the King 25 percent of the total company issued share capital at no cost. It also gave a further 25 percent of the issued share capital to the Swaziland Government, again at no cost. The remaining 50 percent of issued share capital went to SARL.

The King holds shares ‘in trust for the Swazi Nation’, but it is widely reported outside of Swaziland that in fact he has received millions of dollars from international companies such as phone giant MTN; sugar conglomerates Illovo and Remgro; Sun International hotels and beverages firm SAB Millerto, which he spends on himself and his family. 

The King, who rules over an impoverished kingdom of only about 1.3 million people, has 13 palaces, a fleet of top-of-the range BMS and Mercedes cars and a private jet airplane. He is soon to take delivery of a second private jet. Meanwhile, seven in ten of his subjects exist on incomes of less than US$2 per day.

As a general undertaking, the Mining Lease provided that each party should ‘act in such manner as shall be necessary in order to give effect to [the] Mining lease’. That mean they should all have worked to make sure the company was a success. 

It was agreed SARL, being the 50 percent shareholder of SG Iron, had management control of SG Iron, which was in charge of, and responsible for, day-to-day running of SG Iron. SARL was to provide all financial support and technical expertise necessary for SG Iron to succeed.

Article 6.8 of the Mining Lease provided that the Chairman in addition to having his own vote on the Board of Directors should have a casting vote. Shanmuga Rethenam was appointed as the Executive Chairman of the Board of Directors of SG Iron, and Sivarama Petla was appointed as its Chief Executive Officer. Both Executive Chairman and CEO were nominee and representatives of SARL.

Mbuso Dlamini was appointed as the Director for and on behalf of the Swaziland Government and Sihle Dlamini was appointed as the Director for and on behalf of the King.

SG Iron put up approximately US$50 million to start the mining operations and added further capital. The King and the Swaziland Government made no financial contributions.

21 October 2011
The official inauguration of operations was on 21 October 2011 with the dispatch of ore to Maputo Port in Mozambique. On 21 December 2011, the first shipment was carried out from Maputo Port and on 9 March 2012, a rail services from Mpaka to Maputo Port, Mozambique, started.

16 April 2012
Less than six months after operations began, King Mswati, through his representative Sihle Dlamini, asked for and received an advanced payment / loan of US$10 million on the King’s future dividend. This was at a meeting of the Board of Directors of Salgaocar Swaziland held in Mbabane, Swaziland, on 16 April 2012. The money was to be repaid from future dividends payable to the King. 

There was no public announcement made that the King received the money which he held ‘in trust for the nation’ and it is not known how he spent it. This later fuelled speculation that he had used the money to fund his own personal lavish lifestyle. 

26 April 2012
Reports began to appear on the Internet and later in newspapers in Swaziland that King Mswati had taken delivery of a private Douglas DC-9 jet and that it had been given to him as a gift by Salgaocar. The company has denied it gave the jet to the King, but the Swazi Government was lukewarm in its denial. The Times of Swaziland reported, ‘Dismissing the rumours, government Press Secretary Percy Simelane said “That is pure speculation.  The donor has asked to remain anonymous and it will be like that.”’  

Barnabas Dlamini, the Swazi Prime Minister, claimed to the media that the jet had been donated by ‘development partners’ of Swaziland.  

21August 2014
Sihle Dlamini, representing the King at SG Iron wrote to the CEO of SG Iron, Sivarama Petla, instructing him not to sell any more cargo on 21 August 2014. He did this without consulting the major shareholder, SARL. Since that day all attempts by SG Iron to sell cargo were blocked.

Contrary to the terms of the Mining Lease, the Board of Directors was not consulted about the decision to stop sales of iron ore. The Chairman, who was to chair all board meetings under Article 6.7 of the Mining Lease, and who also possessed a right of veto, was not even informed of the King’s decision.

In October 2014, in a founding affidavit at the Swaziland High Court to have the company placed under Judicial Management, Sihle Dlamini would state that a shareholders’ dispute at SARL in Singapore had made it impossible for management decisions to be taken at SG Iron. He also stated that the fall in the world price of iron ore had made production at the mine uneconomical.

After 21 August 2014
Blocking the sale of iron ore meant no trade could take place and SG Iron’s operations were brought to an abrupt standstill. Since no money was coming into the company from the sale of cargoes there was a cash-flow crisis. 

Sales could have resumed at any time because more than 100,000 tonnes of iron ore remained at Maputo Port, Mpaka Railway Siding and at the Mine Stockyard. In his High Court affidavit in October 2014, Sihle Dlamini revealed he had given instructions for ore to be stockpiled until the price of iron ore recovered.

SARL also requested that the King repay the full or part of the US$10 million loan / advance dividend to allow SG Iron to continue operating. The King refused to do this, instead the King’s representative Sihle Dlamini demanded that SARL inject more capital into the business, something it would not do while shipment of cargoes remained blocked.

SARL would say in January 2015 that it felt it had been held hostage by the King’s representative’s decision to unilaterally stop all shipments of cargo.

22 September 2014
At a board meeting of SG Iron held in Mbanane, Sihle Dlamini representing the King and Mbuso Dlamini, representing the Swazi Government, expressed dissatisfaction at the status of the company, saying that a shareholder dispute at SARL was impacting on SG Iron, something which was disputed by SG Iron.

The two men gave an ultimatum that fresh funds should be injected into the project no later than 26 September 2014. The Chairman of SG Iron, appointed by SARL, was present at this board meeting, and he requested that management allow the sale of the cargo, which would release sufficient funds to keep the company operating.

SARL again requested that the King should, ‘for the good of the company’s workers, its shareholders and the kingdom of Swaziland’, repay the full or part of the US$10 million loan / advance dividend to allow the continued operation of SG Iron. Sihle Dlamini, the King’s representative, refused.

Subsequent to the meeting, Sihle Dlamini, representing the King, asked SARL to wipe out the US$10 million loan.

29 September 2014
In a letter dated 29 September 2014, SARL refused to write off the King’s debt. SARL said in January 2015 that in response to this, Sihle Dlamini took a unilateral decision to stop operations and place the company into Judicial Management and then liquidation. This decision was taken without discussions with the major shareholder or considering the voting rights in place at SG Iron.

3 October 2014
Sihle Dlamini representing the King and Mbuso Dlamini, representing the Swaziland Government, called for a meeting of the Board of Directors and despite being told by the Chairman of the Board Shanmuga Rethenam that he could not attend, they went ahead with the meeting without him.

This was the first Board Meeting that had been held without the Chairman’s presence in the history of SG Iron. Sihle Dlamini, the King’s representative, served as the Chairman of the meeting, although he represented only 25 percent of the company’s share capital and SARL, the 50 percent shareholder, was supposed to have control of the board.

Sihle Dlamini and Mbuso Dlamani both resolved to place SG Iron under Judicial Management, without seeking the Chairman’s consent, rather than permitting operations and cargo sale to continue.

10 October 2014
SG Iron was placed under provisional Judicial Management by an Order of the High Court of Swaziland dated 10 October 2014. This order was based on the founding affidavit of Sihle Dlamini, the King’s representative. The Judicial Manager was able to immediately take control and assess the affairs, assets and liabilities of SG Iron.

In his statement, Dlamini said the company, ‘commenced operations on the 21st of October 2011 and it has been extremely successful to date and has been a major income earner for the Kingdom of Swaziland.

‘[It] has also provided a number of investment opportunities to local transport contractors, construction companies and heavy plant and machinery contractors who carry out the bulk of its mining operations at Ngwenya.’

He added the company, ‘is not in an insolvent position in that its assets exceed its liabilities’. He said, however, the Board of Directors had ‘become hamstrung’ and was unable to take effective decisions on the operations of the company.

He said, ‘During or about December 2013, a serious shareholder dispute arose between the shareholders of the investor SARL, which dispute has resulted in arbitration proceedings being instituted between themselves in Singapore.’

He said he was not, ‘fully apprised of the nature of the dispute’, but nonetheless believed it meant that SARL representatives on the Board of SG Iron were unable to take decisions.

Sihle Dlamini also said that the falling price of iron ore had impacted the company. He said the price fell from E1,360 (about US$136) per tonne in January / February 2014 to E550 (US$55) per tonne. This was a new six-year low of the price of iron ore. 

‘It also effectively meant that the cost of processing the ore now at the present moment exceeds the price that [SG Iron] is able to obtain for the ore on the international market. In other words, it has become financially impossible to continue to mine.’

He stated, ‘Currently, as at 30 September 2014 [SG Iron’s] total indebtedness to its creditors amounted to approximately E42 million (US$4.2 million at the then exchange rate). Although that amount seems large, [SG Iron] would very easily be able to pay these creditors if it were in a position to sell the product that it currently has and more so if the price of iron ore recovers.’

However, he did not report that even at the lowest price of US$55 per tonne, if he himself, as the King’s representative, were to permit the 100,000 tonnes of ore stockpiled to be sold it would raise US$5.5 million, more than the US$4.2 million SG Iron owed its creditors.

In his statement, Sihle Dlamini made no reference to the US$10 million loan that had been made to the King that he subsequently refused to pay back.

16 December 2014
On the request of the Judicial Manager appointed by the Court, the Court ordered the provisional liquidation, or winding up, of SG Iron by an Order dated 16 December 2014.

22 January 2015
A Notice of Investment Dispute from SARL prepared for the International Centre for Settlement of Investment Disputes (ICSID) on 22 January 2015 stated the Judicial Manager, who it said was controlled by the King through Sihle Dlamini and Mbuso Dlamini, informed all creditors / vendors of SG Iron of its provisional liquidation, but failed to inform its largest creditor and primary shareholder, SARL, in writing of the event. He also failed to inform Eltina Limited, a major creditor of SG Iron, who bought the cargo of SG Iron and had provided US$10 million as a loan to SG Iron.

SARL reported. ‘The Judicial Manager met with [Sihle Dlamini and Mbuso Dlamini] the Director representing the King and Government almost every day and took instructions only from them’, not the SARL directors, or Eltina Limited. 

SARL reported, ‘[SARL] should have been given the opportunity to put forward their case before the Judicial Manager, since there were numerous alternatives to revive the company, in a violation of their due process rights they have not been allowed to do so by [the Swaziland directors].’

SARL added the Judicial Manager, ‘acting solely on the instructions of [the King’s] representatives, wholly failed his duty’, and when SARL and Rethenam, as Chairman of SG Iron, asked to sell cargo at a higher price even to its own competitor, the Judicial Manager ignored this request. 

‘The only possible explanation for his refusal was that [the Swaziland representatives] knew that, if a cargo was sold, the company would receive cash flow and SG Iron could not be liquidated.’

The closure of the mining project cost 700 people their jobs in Swaziland and it was estimated that several hundred jobs were also lost at the Port of Maputo, Mozambique.

SARL also reported that it had ‘direct evidence’ that the mine was being guarded by the Umbutfo Swaziland Defence Force. 

‘[King Mswati III] is the Commander-in-Chief of the Umbutfo Swaziland Defense Force, providing further evidence of the wholesale expropriation of [SARL’s] investment by state organs of [Swaziland] including the King’s Office, [Swaziland’s] judiciary and [Swaziland’s] military,’ it stated.

SARL added that as a result of SARL’s closure its ‘investment has been expropriated’, and the King’s US$10 million dividend / loan ‘has been written off by judicial decree’.

SARL added, ‘Having expropriated [SARL’s] investments and avoided the repayment of US$56 million in loans to finance the investment, it is understood that the Judicial Manager is now attempting to sell SG Iron to third parties for a song.’

The notice stated it had ‘suffered direct harm in the amount of no less than US$141,147,440.17, for the direct financial consequences of the behaviour of the King and his representatives.

In addition, it is claiming US$57,186,022.53 for its advance and loan owed by SG Iron to SARL. SARL also stated that Eltina Limited was owed US$5,426,954.66.

In its notice of investment dispute, SARL said the order from Sihle Dlamini issued in August 2014 that no more iron ore should be sold was ‘a deliberate attempt to create an artificial cash crisis’ at SG Iron in order to gain control of the company and expropriate the company of its investments.
SARL linked the move to destroy the company to 6 April 2012 when the request was made by King Mswati III, for the US$10 million loan.

‘It appears to be the desire to avoid the repayment of this advance dividend / loan to HMK [His Majesty the King] that lies at the root of the expropriation of [SARL’s] investments in Swaziland,’ SARL stated.

1 February 2015
The Observer on Sunday, a newspaper in Swaziland, in effect owned by King Mswati, attacked SARL and its Notice of Investment Dispute. It quoted Sihle Dlamini, who called the notice ‘a smear campaign’. He also likened SARL to ‘terrorist’ organisations.

Following publication of this article, William Kirtley, attorney to SARL, wrote to the Observer, to say, ‘The only person who stood to gain anything from this was HMK [the King], since the joint venture had provided an advance payment / loan of US$10 million and, indeed, during one of the final board meetings it was repeatedly requested that this be written off SG Iron’s books.’

8 February 2015
The Observer on Sunday, part of the Swazi Observer group of newspapers, in effect owned by King Mswati and described by the Media Institute of Southern Africa in a 2013 report on press freedom in the kingdom as ‘a pure propaganda machine for the royal family’, attacked SARL and said it was, ‘lying by claiming to have filed a notice of arbitration with the International Centre for Settlement of Investment Disputes (ICSID) against the Kingdom of Swaziland’. It said it had proof that no such notice had been lodged.

In fact, SARL had never claimed to have ‘filed a notice of arbitration.’ In a media release dated 29 January 2015, it was announced SARL had submitted ‘a notice of investment dispute’.  A notice of investment dispute is first filed to see if the amicable resolution of a dispute is possible. Only when it is clear that the amicable resolution of a dispute is not possible is the ‘Notice for Arbitration’ filed. 

·         This is a revised version of an article first published on the Swazi Media Commentary website on 9 February 2015.

See also

MYSTERY OF SWAZI KING’S $10m LOAN
KING AT CENTRE OF IRON MINE FAILURE
 
ONLY KING GAINS FROM MINE FAILURE
http://swazimedia.blogspot.com/2015/02/only-king-gains-from-mine-failure.html