Swazi Observer

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OVER 1 200 LIKHWANE BENEFICIARIES IN LIMBO

By NOKUPHILA HAJI | 2025-01-27

WITH schools opening tomorrow, families of the over 1 200 Likhwane Beneficiary Fund investors face a growing crisis as they are still unable to access the funds needed for their children’s education.

This was revealed by Likhwane Chief Executive Officer Mgcini Shongwe, who urged government to act swiftly on the Ecsponent saga, amid rising concerns about the future of the affected children

Despite that Parliament had mandated Cabinet to resolve the issue and reimburse all affected investors within three months, progress on the matter has been slow, leaving many families in distress.

Shongwe in the statement revealed that among these victims were minor children, whose education and well-being depended on the recovery of these funds.

He said there were over 1 200 investors under Ecsponent who were affected after the collapse of the beneficiary fund.

He said the failure to act by the involved stakeholders undermined the well-being of thousands of children and eroded public confidence in Eswatini’s financial governance.

He said they also engaged the deputy prime minister’s office, which serves as the guardian of orphaned and vulnerable children to intervene on the matter to ensure that the affected minors were not further disadvantaged.

“We appealed to the deputy prime minister’s office to intervene to protect children’s rights and ensure compliance with the law,” he said.

Shongwe said there was a devastating impact on the Ecsponent collapse, which he attributed to poor regulatory governance.

He said many families had invested their life savings in Ecsponent, hoping to secure a better future.

“With the reopening of schools imminent, families face a growing crisis as they are unable to access the funds needed for their children’s education.

The Children's Protection and Welfare Act emphasises the protection of children’s rights as a key framework that should guide government’s response on the issue,” he said.

He added that the organisation represented thousands of parents, guardians and dependants. He said there were parents and guardians who were struggling to meet the basic needs and further secure their children’s education.

He said accountability measures needed to be enforced to the regulatory failures that enabled this crisis. “Time is of essence. As schools reopen, affected families need urgent relief to ensure that their children’s future is not compromised.

The Likhwane Beneficiary Fund stands ready to collaborate with all stakeholders to ensure swift action,” he said.

“The financial injustice faced by the affected families could lead to broader social and economic instability. The funds in question represent the sweat, sacrifice, and aspirations of countless families,” added Shongwe.

He said the continued delay in resolving the matter was an affront to justice and humanity. The CEO reaffirmed the fund’s commitment to pursuing justice for the affected investors and vowed to continue advocating for swift and equitable resolution.

Shongwe called on the parents, guardians, and concerned citizens to support the push for accountability and action on this issue.

“As the situation unfolds, all eyes remain on the government, the Central Bank, and the FSRA to fulfil their obligations and address the plight of the affected families. The coming weeks will be critical in determining whether the voices of the victims will be heard and justice delivered,” he said.

Meanwhile, Director of Social Welfare Mcusi Shongwe confirmed that they had a meeting with a selected group of investors on the issue sometime last year.

He said the investors raised an issue that the children who were under the beneficiary scheme were not being supported, which was in violation of the children’s rights.

He stated that in as much as the office was more invested in protecting the rights of children, their hands were tied as this involved frozen accounts and issues of liquidating estates.

“It is hard for the office to interfere in such issues and our scope is limited especially if these matters are still in courts and are going back and forth,” he said.

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