MBABANE – Aspiring property owners in Eswatini have reportedly lost nearly E700,000 in just eight months this year due to fraudulent schemes on social media platforms, according to the Royal Eswatini Police Service (REPS). The scams, targeting individuals looking to purchase houses or plots, have highlighted the absence of proper regulation within the real estate sector.
In a statement made on Eswatini TV, Senior Superintendent Nicholas Jele of the REPS Fraud Unit revealed that emaSwati had been deceived into making payments through Facebook ads, leading to losses totalling E695,340 from January to August 2024. Many of these victims were attempting to secure land or property through what they believed were legitimate deals posted online.
Lack of Regulation
The fraud has been exacerbated by the absence of a Real Estate Agent Act in Eswatini, leaving members of the public vulnerable to scams. Without such regulation, there are no clear guidelines or protections for those looking to buy or sell property, leading to an increase in fraudulent activities.
Chairperson of the Eswatini Realtors Association, Musa Nhleko, emphasized the importance of the Real Estate Agent Bill, which is still under consideration. “Once the Real Estate Agent Bill is passed into law, it will address so many things that emaSwati are faced with,” Nhleko said. He explained that many buyers are duped after responding to seemingly legitimate advertisements, only to discover later that the person they were dealing with was not a registered agent.
Nhleko also urged the public to exercise caution while the government continues its consultations on the Bill. He advised potential buyers to verify the credibility of agents and sellers through the Eswatini Realtors Association to ensure they are dealing with legitimate professionals.
Steps for Prevention
Nhleko provided further guidance on avoiding property scams. “Buying a piece of land is not as easy as buying a loaf of bread, where the payments are instant and in cash,” he remarked. He explained that real estate transactions should involve a legal conveyancer, but warned that even some conveyancers may operate illegally. He recommended that buyers consult the Law Society of Eswatini to verify the reputation of any lawyer involved in property transactions.
Dr. Simon Zwane, Principal Secretary in the Ministry of Housing and Development, echoed these concerns, confirming that the ministry is in talks with stakeholders to refine the Real Estate Agent Bill. Once passed, the law is expected to create a more secure environment for property transactions in Eswatini.
Growing Trend of Fraud
The property scams are part of a wider trend of fraud across the country, with the Eswatini Bank Association (EBA) recently reporting losses amounting to E1.5 million in the first half of 2024. According to the EBA, scammers have been impersonating police officers and bank staff to manipulate unsuspecting victims into transferring funds.
Nomfundo Mkhatshwa, from the Fraud Prevention Liaising Committee, warned that fraudsters often contact bank clients by phone or SMS, claiming their accounts have been compromised. Victims are pressured to take immediate action, only to find themselves duped out of large sums of money.
In another case reported earlier this year, fraudsters stole over E4.5 million between January and July through various online scams, including business email compromises and fraudulent investments. Police reports revealed that business email compromises were responsible for nearly half of the total losses, where senior executives or budget holders were tricked into transferring company funds.
A Call for Action
Fraudulent activities in Eswatini have reached alarming levels, with the country losing close to E700 million in 2023 alone. According to the police, fraud cases increased by 1,000%, with a significant rise in internet-related fraud and business email compromises.
As scams continue to rise, authorities are urging the public to be vigilant and cautious in all financial dealings. The passing of the Real Estate Agent Bill is expected to provide much-needed protection for emaSwati, but until then, potential buyers are advised to verify all transactions carefully to avoid falling victim to these costly schemes.
