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NEDBANK ESWATINI R4MILLION HOUSE ‘GRABBING’ SCANDAL:Law Society Disciplinary Tribunal dismisses Pado Construction Director Patrick Nxumalo’s complaint against lawyer Henwood.

Tuesday, 5th March, 2024

MBABANE:Musa Sibandze,the Acting Chairman of the Law Society of Eswatini(LSS) has dismissed a complaint filed by Pado Construction(Pty) Ltd Director Patrick Nxumalo against lawyer John Henwood.

The Acting Chairman sitting with lawyers Nhlanhla Ginindza and Sinethemba Khumalo concluded that, Nxumalo’s complaint “has no merit” and therefore was dismissed ex-temporae.

Lawyer Musa Sibandze took over and chaired the disciplinary proceedings after Law Society Chairman Zweli Jele recused himself as per Patrick Nxumalo’s application.

Nxumalo reported his former lawyer John Henwood to the Law Society,accusing him of colluding with Nedbank Eswatini to attach and subsequently buy his R4million house.

The once successful millionaire businessman alleged that,Henwood who was his lawyer,acted with a conflict of interest when purchasing the house.

But the Law Society,in its ruling concluded that Nxumalo failed to prove the conflict of interest particularly because,Henwood was engaged by Nxumalo’s Pado Construction as a debt collector in 2010 and the process to purchase the house started in 2013, three(3)years after Henwood withdrew his services.

“At the preliminary hearing, the Complainant did not dispute that Henwood withdrew from acting for him in 2010, so he could not explain why he felt that Henwood still had an Attorney-Client relationship with him some three(3) years later without giving him instructions since 2010. In so far as the Complainant asserts that as a result of Henwood’s erstwhile relationship with Pado Construction, he had come into prejudicial knowledge of the “company documents@ and “financial standing” at Pado Construction and ought not to have accepted Nedbank’s instructions against this company.I consider that  the previous instructions given to Henwood by Pado Construction were specific to claims by Pado Construction against SIDC and Zinhle Investments.It is difficult to comprehend why or how, even if Henwood had become aware of Pado’s financial standing and company documents in 2010, he could use such knowledge to prejudice the Complainant’s company in a claim against them in 2013. Accordingly, this head of complaint is dismissed”, reads the Law Society ruling in part,delivered on the 7th February 2024.

On another note,Nxumalo accuses lawyer Henwood of colluding with senior Nedbank Eswatini officials including Managing Director(MD) Fikile Nkosi and Mbali Sibanyoni,the then Credit Manager now Eswatini Building Society(EBS) Managing Director(MD) of colluding with the lawyer to frustrate and collapse his business with an ultimate intention to ‘grab’ or buy his house.

Nedbank Eswatini Managing Director(MD)Fikile Nkosi vigorously denied the allegations, while Mbali Sibanyoni referred comments to Nedbank. 

Documents in our possession suggest that,the matter was reported and subsequently investigated by the Central Bank and the Anti-Corruption Commission(ACC).

NEDBANK ESWATINI R4MILLION HOUSE ‘GRABBING’ SCANDAL:Law Society Disciplinary Tribunal dismisses Pado Construction Director Patrick Nxumalo’s complaint against lawyer Henwood.
Businessman Patrick Nxumalo.