ONCE DREAMT OF OWNING A DUBAI?
…Just changed my mind because most transactions made by locals with the local second hand dealers require cash payments without proper records as compared to reputable car dealers, which is undermining the Kingdom of Eswatini’s Anti Money Laundering regulations
Compiled by your loving cousin
It’s me again your cousin ‘The Dreamer’ and without a doubt every night as I cuddle my soul in my bunk bed wrapped around by umgacambongolo and umngowe on the side (as you know unlike our Malema-disturbed neighbour our government has never thought of providing us with open –air pit latrines), I have dreamt of a wide boom in the industry of the Asian originated second hand motor vehicles popularly known as Dubais.
It no hidden fact that this boom originated was back in the year 2000 and by then couldn’t afford even the ‘Toyota Corolla bakkie’ or a Saloon sedan which by then costed a local close to E50 000 even when the dealer had to spend a mere E5 000 to ship it in local shores.
Thanks but no thanks to the Asian investors for providing us with unprecedented opportunities to own such after only two weeks at a driving schools-thanks to corrupt instructors who colluded with a handful equally corrupt civil service officials who care less of the ever increasing road accidents in the country.
It is no hidden fact that most locals try so hard to save cash for one of the ‘affordable modes of transport’ and it is not suprising that most transactions made by locals with the local second hand dealers require cash payments without proper records as compared to reputable car dealers, which one of my learned cousins at the country’s Central Bank suggested that such is undermining the Kingdom of Eswatini’s Anti Money Laundering regulations.
After pondering for over an hour last night my voiceless starring character took over my soul and showed me a Hummer H3 which looked brand new but dangling the keys from the driver’s door he was quick to warn me that such arrangements tend to attract criminals who desire to launder their funds, both as proprietors of businesses and as customers.
During his ‘free lecture’ he was quick to remind me that out there in Botswana the internationally acclaimed Institute for Security Studies in one of their documented ‘ money laundering and terrorism paper on Botswana highlighted that vehicles imported from Asia are first taken to Botswana, where they are issued with forged registration books, before
being driven to Lesotho and Swaziland to be re-registered.
My cousin I am now prompted to call Customs & Excise Commissioner Thembinkosi Mpanza if he is aware of such because it is disappointing to have a document and research which concludes that this is done because the authorities in the two countries have neither
the time nor the capacity to verify the authenticity of the registration documents produced, the vehicles are thus easily ‘laundered’.
Can you belive that the Botswana government is sobbing that no duty would have been paid
on the vehicles in Botswana as they would not be on the official registration database. At the same time, the vehicles would not attract duty in Lesotho or Swaziland on the assumption that such duty would have been paid in Botswana as part of the registration process there.
My cousin I am not surprised on South Africa’s latest stance on banning Dubais in their road because most car thieves have found the ‘easy-to steal’ dubais as a get rich quick scheme thus as per local police reports reflect the increase theft of these vehicles and high suspicions have pointed fingers on the other side of the fence where a significant number of imported vehicles are smuggled into South Africa despite the country having stringent laws on the importation of second-hand vehicles.
For such a small country like the Kingdom of Eswatini it is discouraging that it is trying ti distabilise all forces ‘threatening’ the Tinkhundla Government but seems it does not care in digging on the allegations that some of the over populating tinini from Asia have links with terrorist group. The country simply lack the expertise of vetting foreigners entering the country day in and day out; thus one won’t be surprised that popular terrorist groups such as Al-Qaeda agents would easily use the country’s boom in imported second-hand cars trade as a cover for their activities.
It is just disheartening that these so called traders rarely use banks in their business transactions and with our kind second-hand cars directors all over the country’s media making publicity –starved it is a known fact that no one know the source of their investment wealth. Being a peaceful country it seems we have turned a soft target for money laundering because our relatively weak finance and company regulatory regimes.
My cousin I am not Xenophobic attacker and have never dreamt of being one but I am concerned by the increasing foreign communities in the country and in terms of accessibility most of them are closed to government structures, let alone us ordinary citizens.
They are engaged in businesses ranging from small-scale ventures to lucrative developmental and government projects. A key benefit of their presence is that they have technical expertise. They also create much-needed employment. However, because of their restricted access to resources that are easily accessible to citizens, some members of these communities are
tempted to engage in corrupt practices, such as bribing.
It is no hidden fact that the most Chinese community is heavily involved in the retail businesses. The commodities they sell are glaring to be either under-invoiced on entry or
smuggled with the assistance of corrupt customs officials. They are generally involved in counterfeit products. It is discouraging that the country’s police are only concerned with clamping down on the Mozambican traders selling fake CDs and movies but I am yet to see them raining these Chinese owned shops which the public claim to be trading in illegal or illegitimate products.
Next door to the Chinese the town is flooded by Indian and Pakistani owned shops who are popular in keeping the proceeds of their businesses on their premises, rather than banking their money. Recently a group of Tanzanians have been reportedly short by police after targeting an Indian national and tried to rob, maybe because of such a perception (however such is yet to be confirmed by the country’s court of law).
Last year an Indian National owning one of the filling stations was reportedly robbed E50 000 while driving at the Swazi Plaza parking bay.
With most Asian nationals accused of banking in their backyards such reinforces the general public perceptions of their banking habits. Though it has never been established what eventually happens to the large sums of money thus kept out of circulation. The possibility is that some is re-invested into sustaining or expanding existing businesses. To the extent that the practice of keeping large sums of money outside the banking system persists, there is a possibility that some of it finds its way to financing other deeds beyond the country’s borders ( some Asian nationals were recently arrested at the Matsapha International Airport carrying over foreign currency to be equivalent to E1million). Let me pray to the Almighty and hope that one day in simplier term-discussion The Central Bank of Swazilamd would periodically publish estimates of the amount of money either out of circulation or that could have been smuggled out of the country at any point.
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