Due Dilligence

DUE DILLIGENGE

www.afristratpumpanddump.co.za

RECKLESS TRADING OR SHANANIGANS A “GUNG-HO ATTITUDE TO PENSIONERS INVESTED FUNDS???

Now that the Preference Shares have been covered…. The facts highlighted; the next chapter will address the “Shenanigans’ of the company, and try to explain where the R2.3 Billion disappeared to, how were the funds invested and by whom to whom!

Bank of Zambia orders top Zim banker George Manyere to leave MyBucks

The Bank of Zambia (BoZ) has ordered a leading Zimbabwean banker, George Manyere, to cease both control of the stake and management of fintech company MyBucks after breaching banking rules.

The founder of Brainworks Capital Management, now the former managing director and chief investment officer of the corporation, is said to have violated banking regulations in the neighboring country.

Freda Tamba, a letter read by NewZimbabwe.com Business and signed by BoZ’s director of oversight of non-bank financial institutions, shows that problems have been brewing for the top banker since September 2020.

BoZ believes the actions of Manyere and his counterpart Barkat Ali were detrimental to MyBucks Zambia stakeholders after the duo allegedly donated $ 10 million to Ever Prosperous in exchange for an allegedly $ 5 million asset – Guaranteed dollars had to be purchased at a later date. “In the opinion of the bank, the transaction was irrational and did not qualify for it to be carried out in the normal course of MyBucks business. These measures constitute unsafe and unsound practices within the meaning of Section 2 of the Banking and Financial Services Act (BFSA), ”Tamba said in the letter.

The BoZ therefore found Manyere; “Not being fit and adequate to be a shareholder and director” of a financial services company.

The decision was implemented on the basis of Section 41 (2) BSFA, which authorizes the bank to remove a person from office if it believes that their requirements have been violated.

Accordingly, MyBucks Zambia is expected to sell its 45% stake in Xtenda, which, if approved by BoZ, will provide for a proper sale of the shares in the company.

In the meantime, Ecsponent Ltd will sell its entire 25% stake in MyBucks Zambia, while MyBucks SA will sell 20%, including staying at 45% stake.

“After all procedures, this means that MyBucks SA will reduce your stake in MyBucks Zambia to 40.9%,” added Tamba.

Contacted for comment on the developments, Manyere was unable to acknowledge or deny the allegations.

“I have no way of expressing myself on confidential issues relating to the Bank of Zambia, and in my decades of banking career I have addressed regulatory issues directly with the regulator,” he said.

At the time of publication, BoZ did not answer any questions sent by email on this topic.

The board is ultimately responsible for the company’s performance and affairs, which includes protecting and enhancing the company’s wealth and resources, timely and transparent reporting and acting at all times in the best interest of the company and its stakeholders. In fulfilling this responsibility, the board oversees the strategy, acquisition and disinvestment policy, risk management, financing and corporate governance policies of the company.

Afristrat Investment Holdings started off prior to 1998 as E-Data Holdings, Registration Number (1998/013 215) E-Data remains a shell company and has recorded no turnover as at 05/07/2002 JSE Listed company under the ISIN Code 000015673. On 5 March 2014, the company entered into an underwriting agreement with Ecsponent Capital (RF) Limited, its major shareholder, Eunè Engelbrecht is a director of Ecsponent Capital (RF) Limited, the major shareholder of the Company.

*** Reference is made to the Major Shareholding as it is relevant on how George Manyere entered into the company****

Eunè was the head of Blue Financial Services’ Corporate Finance division where he was involved in fund-raising at a corporate level. The division was responsible for securing continuous and affordable funding from global private equity funds, investment banks and development funding institutions. He was also responsible for acquisitions and expansion-related activities at the company, whereby the major shareholder partially underwrote the rights offer of R100 million at an issue price of 14 cents per share. The funding facility is convertible into ordinary shares in ECS at the 14 cents rights offer price The liability created by the funding provided to Ecsponent from the major shareholder was fully extinguished by year end 2014.

AFRISTRAT INVESTMENT HOLDINGS LIMITED: Afristrat Investment Holdings Limited (Registration Number 1998/013 215) Registered on the 02nd October 2020, previously Ecsponent Limited, previously Escalator Investment Holdings, previously John Daniels Holdings Limited, previously Capital Commitments, - Capital Commitments (Registration Number 2000/027 416) acquires E-DATA HOLDINGS(Registration number 1998/013 215) on the 01st March 2005 E- DATA exits.

Escalator Investment Holdings (Registration Number 1998/013 215) registered on the 23rd December 2013, previously John Daniels Holdings Limited, previously Capital Commitments, - Capital Commitments (Registration Number 2000/027 416) acquires E-DATA HOLDINGS (Registration number 1998/013 215) on the 01st March 2005 E- DATA exits

JOHN DANIELS HOLDING LIMITED: John Daniels Holdings Limited (Registration Number 1998/013 215) Registered on the 06th of February 2009, previously Capital Commitments, - Capital Commitments (Registration Number 2000/027 416) acquires E-DATA HOLDINGS (Registration number 1998/013 215) on the 01st March 2005 E- DATA exits CAPITAL COMITEMENTS:

Capital Commitments (Registration Number 1998/013 215) Registered on the 01st of March 2005 acquires E-DATA HOLDINGS (Registration number 1998/013 215) on the 01st March 2005 E- DATA exits

Ecsponent Limited is a specialist financial services Group of companies. The Group generates wealth through investment in financial and private equity assets in specific niche market sectors.

DUE DILIGENCE: The company claims it does due diligence on the following manners:

Transacting with clients, including Credit and background checks. Preliminary review by Credit and Investment Committee. Site visit to ascertain operations, management and collateral. Contact to be made with, staff, suppliers and other parties involves in transaction. Obtain fair and valuations by approved, independent reputable firms. We adhere to a strict investment structure whereby there is a clear segregation of duties and ring-fencing of investments for the benefit of all our investors.

The Group operates on a matrix structure, leveraging core skill across its targeted geographies and is structured into three pillars namely:

Underpinning the pillars the Group performs key functions in order to generate wealth including Capital Raising, Credit and Capital Growth.

As a listed private equity company, Ecsponent focusses on African opportunities where local businesses can be leveraged, grown or brought into the Group.

Here it looks for African acquisitions whereby shares and cash can be used to purchase businesses that suit the business model and are complimentary to its expansion plans or other investments. These include but are not limited to banking, stock broking, advisory and private equity opportunities.

The Group’s investments are diversified across a number of industries, predominantly financial services and technology. High-growth opportunities are identified and negotiated by industry specialists with significant experience in these industries. Shareholder value is currently improved by the expansion of the Group through the growth in the underlying assets and operational trading

Regulatory environment: DECEMBER 2014 the anticipated changes to the National Credit Act have been passed as you may have read in the media. The key components hereof as they affect the Group are:

• more rigid controls on the vetting of prospective clients in our retail credit operations;

• compulsory registration of all credit providers and debt collectors under the Act;

Ecsponent has complied with the new requirements as part of the organisation’s governance framework. We therefore welcome these measures as it will support a sustainable industry and other than a number of clients whose debt may have prescribed, we do not foresee that these amendments will have any material impact on our business.

After covering the background of the company, the business model and how the acquisitions should have taken place, in the next chapter we will open the proverbial Pandora’s Box –

How does the company justify the word Niche Market, when it is the Director’s themselves acquiring shelf or shell companies, or acquiring companies already established by other directors, how would the purchase price be justified?