Financial Fraud Rocks Swaziland: King’s Proximity Enables Illicit Activity
A Web of Corruption Exposed in Southern Africa
A recent investigation has uncovered the country of Eswatini, previously known as Swaziland, as a possible conduit for gold smuggling and financial fraud in southern Africa. The probe reveals that the absolute monarchy’s weak anti-money laundering controls have enabled figures close to the royal family to benefit from their proximity to the king.
Economic Challenges Facing Eswatini
Eswatini is a landlocked country between South Africa and Mozambique, with an economy heavily dependent on its larger neighbors. The country faces significant economic challenges, including:
- High unemployment rates: nearly 60% of Swazis under 25 are out of work
- Poor health outcomes:
- Life expectancy at 53 years for men
- Life expectancy at 61 years for women
“Swazi Secrets” Investigation Reveals Ghost Town and Phantom Gold Refineries
The investigation, dubbed “Swazi Secrets,” is based on leaked files from the Eswatini Financial Intelligence Unit (EFIU) and reveals that the king’s promise of a special economic zone failed to materialize. Instead, a ghost town with two phantom gold refineries has been established, channeling millions of dollars to Dubai.
Leaked Files Reveal Royal Family Connections
The leaked data includes records relating to prominent individuals in the king’s orbit, including members of the royal family and government officials. The investigation highlights the extraordinary role played by the king and his allies in supporting a new bank in a long-standing dispute with the Central Bank of Eswatini.
Largest Leak of its Kind from a Financial Intelligence Unit in an African Country
The EFIU leak, which totals over 890,000 internal records, is the largest of its kind from a financial intelligence unit in an African country. The files include:
- Bank records
- Suspicious transactions analyses
- Police investigation reports
- Court affidavits
- Confidential exchanges between government agencies
ICIJ’s Commitment to Transparency and Whistleblower Protection
ICIJ will not release personal data or the full cache of leaked files but may publish relevant documents alongside its stories. The organization is committed to serving the public interest and does not share reporting material with authorities.
International Consortium of Investigative Journalists (ICIJ)
The Swazi Secrets investigation was coordinated by ICIJ and involved a team of 38 journalists across 11 countries. ICIJ welcomes new offers to collaborate with journalists but prioritizes those with a proven record of high-quality investigations. Whistleblowers can securely submit information about potential wrongdoing, and ICIJ relies entirely on donations to fund its work.