By Zweli Martin Dlamini

MBABANE:Patrick Nxumalo,the once successful multimillionaire businessman is now living in poverty after a well-syndicated team of legal practitioners linked to lawyer John Henwood allegedly colluded with Nedbank Eswatini senior officials to destroy his business with an ultimate intention to ‘grab’ his R4million mansion,an independent investigation has uncovered. 

The double-storey house that attracted the interest of lawyer Henwood and his syndicate within the legal fraternity,is situated at the prime area, on Portion one(1) of Lot 649 in the capital city-Mbabane next to the United Nation(UN) Eswatini Offices.

Documents obtained by this Swaziland News investigation unit suggests that,Nxumalo,the Director of Pado Construction(Pty) Ltd was generating an over R20million annual turnover, and some of the company’s major projects include the construction of the R13million Matsapha Town Board Offices,the R8.5million Mbangweni National Housing flats as well as the R15.5million construction of schools across the country funded by the Japanese Government.

It is alleged that,after the systematic ‘grabbing’ of his R4million house and the destruction of his successful business,the once successful businessman, was forced into poverty and his children who were studying in South Africa had to drop out of school.

The documentary evidence in our possession further revealed that,as a result of the frustration,Nxumalo subsequently received counseling from well-known Clinical Psychologist Ndo Mdlalose. 

Reached for comments on Friday afternoon,Patrick Nxumalo,the Director of Pado Construction confirmed to this publication that,Nedbank Eswatini officials colluded with his lawyer John Henwood to grab and/or buy his R4million house.

“While busy with my projects,I received a call from Mbali Sibanyoni,the then Nedbank Credit Manager who informed me that the bank has decided not to offer me an overdraft,I was busy with the construction of schools funded by the Japanese Government.The bank was offering me an overdraft of up to R1.5million and when the payments comes, they would deduct their money with an interest.After the bank dumped me with no clear reasons,I then struggled to fund the projects and financial troubles started.I was doing other projects and some clients owing my company millions were delaying to pay and I engaged John Henwood as my lawyer and debt collector”,said the businessman.

The Pado Construction Director further alleged that while facing the financial challenges and as a result of the frustration allegedly created by Nedbank,his lawyer Henwood dumped him without declaring that he had an interest in his R4million property and he then learned that the same lawyer was “now representing” Nedbank as a debt collector.

“After dumping me,my lawyer later served me with papers saying he was now representing Nedbank and demanding some outstanding-payments owed to Nedbank.My R4million house based in Mbabane was attached and soon thereafter, Cutting Edge,a company with alleged links to Nedbank Managing Director Fikile Nkosi was given the tender to sell my house.Thereafter,I was approached and told that,the same Henwood who was my lawyer, now representing Nedbank has expressed an interest to buy the house.Nedbank quickly offered him a loan and my house was ‘grabbed’ through the well syndicated corruption involving lawyers and Nedbank officials”,he said.

Efforts to reach Natasha Macaskill,the Cutting Edge alleged Director proved unsuccessful at the time of compiling this report.

Reached for comments by this publication on Friday evening,Mbali Sibanyoni,the then Nedbank Eswatini Credit Manager,now Managing Director of the Eswatini Building Society(EBS) whose name features prominently in the matter,referred comments to Nedbank.

“Hello Nkhosi.Thank you for this however,I believe this should be directed to Nedbank.Thank you”, said the former Nedbank Credit Manager now Managing Director at Building Society.

But bank documents in our possession suggests that on the 5th February 2014 after Nedbank seized control of Nxumalo’s Pado Construction bank account, the bank allegedly paid One hundred and fourteen thousand Rands(R114,000.00) to Cutting Edge,a company with alleged links to Nedbank Managing Director(MD) Fikile Nkosi and according to the documents, the money, was paid directly from Pado Construction bank account.

An investigation further uncovered that,the businessman then reported Nedbank Eswatini to the Central Bank,a regulator of financial institutions in the country.

As result, Majozi Sithole, the then Governor of the Central Bank instructed Grant Thornton(former KPMG),a South African reputable company and a member of Grant Thornton International Ltd,to investigate the alleged conflict of interest and or corruption at Nedbank Eswatini that resulted to Nxumalo losing his R4million house.

Even though the investigation report in possession of this Swaziland News and submitted to the Central Bank Governor, disputed some of the allegations made by Nxumalo against Nedbank,it concluded that Nedbank Eswatini was indeed complicit and/or failed to prevent a clear conflict of interest by allowing lawyer John Henwood to buy the R4million house despite a clear or possible of conflict of interest.

“It is evident that conflict of interest existed on the side of Mr Henwood, and the bank failed to act on it, as such the allegation in this regard is substantiated. It appears that the bank gave Mr Henwood an advantage to secure Mr Nxumalo’s property when the bank allowed him to purchase Mr Nxumalo’s property through another sale process that the bank initiated through Cutting Edge, thereby disadvantaging other potential buyers in the public that may have purchased the property through auction.This is irregular and appears to have elements of a corrupt transaction as defined by section 26(2) of the Prevention of Corruption Act”, reads the report in part.

Reached for comments by this Swaziland News,Fikile Nkosi, Nedbank Eswatini Managing Director(MD) referred questions to Mpendulo Shongwe,the Head of Legal Affairs,she then wondered why Nxumalo was still pursuing the matter as it was handled by the Ombudsman.

“Good afternoon Mr Dlamini,I’m not in the country neither in SA but Ashanti but do speak to our legal and credit guy Mpendulo Shongwe.Ufunani uMnguni ngobe sewahamba yonkhe indzawo still talking to this matter even the Ombudsman heard the matter and ruled on it”, said the Nedbank Eswatini Managing Director.

Efforts to reach Mpendulo Shongwe, the Nedbank Head of Legal Affairs proved unsuccessful at the time of compiling this report. 

But the Nedbank Managing Director subsequently failed to respond to a specific question when asked to clarify an allegation suggesting that, she was linked to Cutting Edge,the company that was allegedly contracted by Nedbank Eswatini to sell Patrick Nxumalo’s house and subsequently paid R114,000.00 directly from Pado Construction  account.

“But I need a specific clarification from you.Do you have links with Cutting Edge?”, reads the question sent by this journalist to the Nedbank Managing Director.

Worth-noting,instead of responding to the specific questions, the Managing Director urged this journalist to ask Nxumalo if he was not owing the bank a certain amount something that resulted to the house being attached, she subsequently threatened to take legal action against Nxumalo.

“ Zwemart you know how I protect my integrity and office.If he wants to get personal then let’s deal with it in court-let’s meet there”, said the Nedbank Managing Director.

Mandla Luphondvo, the Central Bank of Eswatini(CBE)Head of Strategy and Communications told this publication that,he will have to consult with the authorities within the Central Bank so he can fully understand what happened regarding this matter.

“Some of these matters are historical so you may find that this happened before I joined the bank, I will have to consult and find out what happened”, said the Central Bank Head of Strategy and Communications.

Reached for comments,lawyer John Henwood told this publication that, he was rushing to a meeting hence he can’t talk.

“Unfortunately,I’m rushing into a meeting hence I can’t speak”,said the lawyer.

On another note,Central Bank SNG Grant Thornton report concluded that,the Central Bank as the regular of financial institutions, must consider reffering the matter to the Anti-Corruption Commission(ACC) for further investigation.

“CBE should consider referring the matter to the Anti-Corruption Commission for further investigation in order to determine possible collusion between Nedbank officials and representatives of the bank’s sales agent and legal agent.CBE should engage Nedbank on controls, the bank has to put in place to monitor relationships of their employees and/or agents in instances where the bank instituted legal action against its customers to recover monies loan to parties in respect of properties”, reads the report in part.