Rights group accuses ’greedy’ eSwatini King of blocking crucial resort sale
A rights group has accused eSwatini’s King Mswati III of placing greed above the livelihood of over a thousand citizens within the hospitality industry.
CAPE TOWN, 15 June (ANA) – eSwatini’s King Mswati III has been accused of placing greed above the livelihood of citizens by allegedly blocking the sale of an embattled hotel group.
Human rights group Swaziland Solidarity Network (SSN) said they were probing an issue involving the nation’s oldest hotel group, Swazi Spa Holdings Limited, which is jointly owned by Sun International and Tibiyo Takangane – a sovereign wealth fund held by Mswati III in trust for the nation.
Sun International management confirmed that it had applied for liquidation of the Swazi Spa Holdings group of companies at the eSwatini High Court because the sale had been consistently blocked by one of their eSwatini partners – they did not reveal which partner.
The result of liquidation rather than a sale would leave over 170 Swazis jobless with a ripple effect to almost a thousand more.
“Since March 2011 we have had several offers from reputable hospitality groups to buy our shares, but one of our Eswatini partners has consistently prevented us from selling our 50.6% shareholding,” said Sun International’s CEO, Anthony Leeming
Since lockdown was implemented in the country in 2020, Royal Swazi’s casino, two hotels, restaurants, spa, conferencing facilities and golf course has remained closed.
According to SSN, they believed that Mswati III was blocking the sale because he wanted Sun International’s shares for free.
“According to the agreement Tibiyo has ’Right of First Refusal’ over Sun International’s shares. This means that Tibiyo should be the first to be offered Sun International’s shares. However, should Tibiyo not wish to purchase them, they can be sold to other interested parties,” said SSN spokesperson Lucky Lukhele.
He said that Mswati III had manipulated this contractual agreement by simply refusing to commit Tibiyo to either take up or waiver its rights to purchase Sun International’s shares.
“This stand-off is caused by the king’s belief that Sun International should give the king these shares for free while the latter reasonably expects to sell them at market price,” said Lukhele.
They say as a result of the impasse, employees currently employed by the hotel group are left stranded with no indication if they will be paid for June.
“Since the government enforced lockdown the employees have been surviving on only 31% of their salaries due to the fact that all hotels were closed. However, while other hotels have begun operating due to a relaxation of the rules, all Swazi Spa hotels have remained closed with employees not informed of the reasons behind the continued closure,” said Lukhele.
Lukhele said by refusing to commit, the hotel has been forced to remain close and in turn is accumulating debt due to being non-operational and these circumstances will force the company into liquidation.
“What makes this situation worse is the fact that neither the company nor its employees can seek legal reprieve from the country’s courts since the king is constitutionally immune from civil suits. King Mswati’s greed is truly mind boggling,” said Lukhele.
Leeming said Sun International was saddened by the implications for staff, loyal creditors, investors and the communities which the resort supported.
“The Royal Swazi Spa resort is a tourism icon for the country and the region, and in the right hands, and under the right trading conditions, it can continue to benefit eSwatini,” he said.
The African News Agency has made attempts to get comment from the eSwatini government. The story will be updated with their comment once received.
African News Agency (ANA)
