Eswatini Authorities Crack Down on Non-Compliance, Seize Cash and Passports

Eswatini authorities have discovered E214 731 in cash at a clothing shop in Manzini and 39 passports belonging to different foreign nationalities at another business during compliance inspections. The discoveries were made by a multi-stakeholder government task team conducting inspections at business premises across the country to establish compliance with business, financial, tax and immigration laws. The inspections aim to ensure that businesses operate within the law.

The cash was found at a shop during checks relating to financial obligations, banking requirements, tax registration and Value Added Tax (VAT) compliance. At another business in the Mozambique Hotel Complex, inspectors discovered a shop manager in possession of 39 passports belonging to different nationalities, including Pakistan, Mozambique, South Africa and Eswatini. The shop was also found with cash in multiple currencies. Authorities have not yet established whether the passports were legally held.

Registrar of Companies Msebe Malinga led the inspection and stated that the authorities would first establish the exact amount of cash before determining its purpose and whether it raised any compliance concerns. The country has a E25 000 threshold for carrying cash, and authorities need to establish where the money was coming from, where it was intended to go and what it was meant to finance. Malinga said the authorities were yet to count the money and apply the relevant laws.

The inspections are part of government's responsibility to ensure that businesses operate within the law. Malinga emphasized that public officers enforce compliance and need to be accountable for their work. The discoveries came as government intensified its nationwide business compliance inspections, with Minister of Commerce, Industry and Trade Manqoba Khumalo issuing a statement to clarify the purpose and scope of the exercise.

Minister Khumalo stated that the inspections were initiated on May 5 and were intended to verify whether businesses operating in urban and rural areas complied with the country's laws and regulations. He disclosed that 3 226 businesses had been inspected across the four regions, with 69.4% found to be noncompliant. The retail sector accounted for 68.9% of the businesses inspected.

Khumalo stressed that the exercise was not directed at any particular individual, group or nationality, and dismissed suggestions that it was xenophobic or intended to frustrate Emaswati. He said the inspections were being conducted under existing legislation, including the Trading Licences Order of 1975, the Immigration Act of 1982 and the Income Tax Order of 1975.

The ministry has appealed to the business community to cooperate with authorities and ensure that they meet all legal and regulatory obligations. Khumalo acknowledged the need for fair and practical transitional arrangements for foreign nationals operating in sectors reserved for Emaswati who were lawfully in the country and willing to comply with the law.

Key points

• Authorities discovered E214 731 in cash and 39 passports during compliance inspections in Manzini.
• The inspections aim to ensure that businesses operate within the law and comply with business, financial, tax and immigration laws.
• 3 226 businesses have been inspected across the four regions, with 69.4% found to be noncompliant.