Shakantu’s Web of Suspicion: Zambian Ex-President Lungu Tied to Swazi Businessman

A Complex Web of Financial Transactions and Suspicious Activities Uncovered

Eswatini (formerly Swaziland) - A recent forensic report has shed new light on the intricate web of financial transactions and suspicious activities surrounding Eswatini businessman Michelo Shakantu, who has ties to former Zambian President Edgar Lungu.

Flawed Procurement Process at South African Rail Company

According to leaked documents, Shakantu’s company, Inyatsi Group, has benefited from a flawed procurement process at a state-owned rail company in South Africa. The report also found that Shakantu co-founded Swazi Mobile with Victor Gamedze, a businessman who was murdered in 2018.

Eswatini Financial Intelligence Unit Investigates

The Eswatini Financial Intelligence Unit (EFIU) investigated Shakantu’s finances and discovered numerous accounts and companies linked to him. While the unit could not determine the “true source” of some transactions, it observed that Shakantu funds many entities, even when he is not a director or shareholder.

Questionable Business Dealings with Swaziland National Provident Fund

The EFIU also scrutinized Shakantu’s business dealings with the Swaziland National Provident Fund, which manages retirement savings for all employed Eswatini nationals. The unit questioned why most of the money ended up in Shakantu’s personal accounts, rather than those of his company, Swazi Mobile.

Denial and Evidence of Illegal Activities

Shakantu denied any connection between himself and Lungu, calling allegations of corruption “not factual.” However, the EFIU pointed to evidence that Shakantu was involved in illegal activities and was shuffling his money around to conceal its origin, potentially benefiting the former head of state.

Political Obstacle Hits Investigation

The investigation appears to have hit a political obstacle. Minutes from an November 2018 meeting between EFIU officials and Eswatini’s Anti-Corruption Commission note that the ACC “still need to sit down and appraise the incoming Commissioner” of the matter because it touched on politically exposed persons (PEPs). Shakantu’s wife, who was appointed as Minister responsible for the institution doing the investigation, had also been appointed head of a parliamentary committee tasked with combating corruption.

In related news, Zambian authorities have cracked down on Lungu’s inner circle. His son and daughter-in-law were arrested over allegedly tainted cash and property worth roughly $5 million. The state has also seized 20 properties it claimed were illegally obtained by the Lungu family.

Transparency International Weighs In

Transparency International’s Nyambe described corruption as “a dark stain on Edgar Lungu’s legacy as president.” Lungu, who is still in Zambia, and his party have denied allegations of corruption, calling them a political witch hunt.

Key Points:

Michelo Shakantu’s company, Inyatsi Group, benefited from a flawed procurement process at a state-owned rail company in South Africa.
Shakantu co-founded Swazi Mobile with Victor Gamedze, who was murdered in 2018.
The Eswatini Financial Intelligence Unit (EFIU) investigated Shakantu’s finances and discovered numerous accounts and companies linked to him.
Shakantu denied any connection between himself and Lungu, calling allegations of corruption “not factual.”
Zambian authorities have cracked down on Lungu’s inner circle, arresting his son and daughter-in-law over allegedly tainted cash and property.