By SIBUSISO DLAMINI | 2025-04-06

Business Eswatini (BE) President Mvuselelo Fakudze and Chief Executive Officer E. Nathi Dlamini have called for the urgent resolution to the ongoing crisis at EswatiniMed, stating that the matter must be settled swiftly in the interest of the scheme’s members—particularly those currently hospitalised and dependent on the fund’s viability.

In a joint statement released this week, Fakudze and Dlamini made it clear that while they are now not directly involved in the legal battle between the leading private sector representative in the country and EswatiniMed executives, they remain keenly interested in ensuring the matter is resolved expeditiously for the sake of members whose lives depend on the fund’s viability.

“The ongoing developments at EswatiniMed are both troubling and unsettling. It is our fervent prayer that the matter be settled speedily, for the sake of the members of the scheme, especially those in hospitals whose lives depend on the viability of the Fund,” they said.

Fakudze and Dlamini clarified that their decision to step aside from the matter was voluntary and made in full observance of BE’s ethical standards and corporate governance practices.  

They explained that continued involvement on their part could create, or appear to create, a conflict of interest—particularly as EswatiniMed owes hundreds of millions of Emalangeni to Standard Bank Eswatini, where Fakudze serves as chief executive, and the chairman Sammy Dlamini is brother to E.Nathi.

“Therefore, in observance of our ethical code and strict corporate governance rules, we willingly and voluntarily decided to recuse ourselves from being active participants in the matter from the beginning,” read a part of the statement.

The joint statement by the two executives was released amid heightened tensions between BE and EswatiniMed top leadership, with the former accusing Principal Officer Peter Simelane and Chairman Sammy Dlamini of defying a court interdict by proceeding with an annual general meeting (AGM) on March 26.

tasked
The AGM went ahead despite an order by Judge Ticheme Dlamini barring the meeting, prompting BE to file contempt of court proceedings against both men at the High Court last week.
Montigny Investments CEO Andrew Le Roux, who resigned as BE vice president, has, according to Fakudze and Dlamini, now been tasked with leading BE’s engagement on the matter.

“We trust he'll be able to successfully manage the process to finality,” they said in the statement. Le Roux confirmed and made it known that he would be supported by BE’s Head of Trade and Commerce Musa Maseko and Head of Legal Affairs Nozipho Msibi.

Le Roux has been forthright in his criticism of the EswatiniMed’s management, accusing the fund’s leadership of severe financial mismanagement and a breakdown in governance.

He said the decision to pursue legal action followed repeated concerns over irregularities, including the hosting of board meetings and AGMs without proper authorisation, the spending of funds without accountability, and resistance to independent forensic auditing.

“Let’s be clear here and not run away from the facts. This whole controversy surrounding EswatiniMed stems from allegations of severe financial mismanagement, which has left the medical aid scheme in a precarious financial position,” said Le Roux. 

He attributed the fund’s decline largely to its investment in the Eswatini Private Hospital (EPH), saying the financial strain caused by the decision to build a hospital has placed the entire scheme at risk.  

According to Le Roux, the fund has been on a steady financial downturn since the acquisition, and its lack of transparency—including the hospital’s unaudited status—makes recovery difficult. Regarding ownership, Le Roux dismissed claims by Sammy Dlamini that government is the principal shareholder of EswatiniMed, describing them as ‘absolute nonsense’.

“Government may appoint some directors, but it is not a founding shareholder of the fund,” he maintained.

Le Roux also dispelled speculation that Montigny is eyeing the acquisition of EPH, stating flatly that such a move would be unwise under the current circumstances.

The matter between EswatiniMed and Business Eswatini is expected to be heard in court on Tuesday.

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