Afristrat liquidation ‘an attempt to misattribute responsibility' – ex MyBucks SA boss

The Citizen

2 days ago

David van Niekerk alleges Afristrat CEO George Manyere was 'the architect of the downfall of both Afristrat and MyBucks'.
Former MyBucks SA CEO David van Niekerk claims the provisional liquidation of Ecsponent, the previously JSE-listed company now renamed Afristrat, appears to be an attempt to rewrite history and misattribute responsibility for the group's dire financial situation.
Van Niekerk said the underlying issue remains the actions of Afristrat CEO George Manyere, 'not only as a participant, but as the architect of the downfall of both Afristrat and MyBucks'.
He rejected a suggestion in a founding affidavit in support of Afristrat's liquidation that it was a 'bona fide error in judgment' by Manyere to convert R420 million in MyBucks debt into equity in November 2019.
Van Niekerk said this narrative by Manyere is 'disingenious,' alleging the decision and strategy were orchestrated by Manyere to:
Consolidate control over MyBucks and Afristrat.
Strip assets from both companies into MHMK Group entities.
Divert value away from existing shareholders.
Approached by Moneyweb for comment on Van Niekerk's allegations, Manyere said they do not currently intend to engage with 'the unfounded and defamatory allegations made by Mr Van Niekerk, which are both factually incorrect and misleading'.
He added that the circumstances surrounding the collapse of Afristrat have been comprehensively outlined in his founding affidavit for the liquidation of the company.
'We, however, reserve the right to address any allegations made by Mr Van Niekerk in the necessary forum,' he said.
The board of Afristrat approved a special resolution to apply for Afristrat's liquidation because the company is technically insolvent and unable to pay its debts as and when they become due.
The notice of motion was served to Afristrat Investment Holdings Limited on 15 July 2025.
Investors invested R2.3 billion in preference shares in the company.
ALSO READ: Afristrat has 'lost' R1.5bn investment in MyBucks
Manyere claimed in the founding affidavit that Afristrat 'unfortunately fell victim to an orchestrated series of fraudulent transactions,' which caused the company irreparable harm.
He referred to an investment in MyBucks SA (Luxembourg) and its subsidiaries, co-founded and managed by Van Niekerk up until March 2019.
Van Niekerk's initial response to Manyere's allegations was that he too was a victim – not a beneficiary – of Manyere's actions.
He subsequently provided a detailed response to Moneyweb about the mechanisms that led to the collapse of value in both MyBucks SA and Afristrat.
Van Niekerk said Afristrat invested in numerous entities, only one of which was MyBucks, and that he served as CEO of the Frankfurt Stock Exchange-listed MyBucks SA until March 2019.
He said Afristrat provided funding to MyBucks SA to support its lending businesses in Africa and South Africa.
However, Van Niekerk claimed that from 2018 through to early 2019, Manyere – who was then both a board member of MyBucks and vice chairman and de facto controlling shareholder of Afristrat via MHMK Group – began asserting that MyBucks and its subsidiaries were unable to service this debt.
'This, in truth, was part of a dispute over the cost of funding charged by Ecsponent,' he said.
ALSO READ: Ecsponent investor continues fight over R2.3bn in lost investor funds
Debt to equity conversion
Van Niekerk said that, as a supposed solution, Manyere proposed converting debt to equity in MyBucks.
'Since a few of the Manyere's shareholders had debt in the business, he convinced all debt holders that a cheap conversion was the way to go,' he claimed.
Van Niekerk said Manyere then secured the appointment of his former business partner and confidant, Tim Nuy, as CEO of MyBucks SA to consolidate his operational control of the group.
'At this point, it became clear that it was Manyere's intention to wrest control of MyBucks SA via Afristrat, with the full support of the board.
'After many months of fighting this, I resigned as CEO on 27 March 2019 in opposition to this course of action, which – as it turned out – would prove catastrophic for both Afristrat and MyBucks SA,' he said.
ALSO READ: Ecsponent Financial Services accused of selling high-risk preference shares to pensioners
JSE investigation and outcome
Van Niekerk said letters were sent to the JSE Market Regulation Department in May and June 2021 concerning MHMK Fin, formerly the MHMK Group, entering into several transactions with Afristrat involving asset transfers and share issuances, including the acquisition of assets formerly owned or controlled by MyBucks SA.
He explained that these letters outlined how these orchestrated transactions – including the MyBucks debt conversion – appeared to have been designed to secure operational control of Afristrat and MyBucks SA by MHMK Group, and formally requested the JSE to investigate these transactions.
'Regrettably, no action was taken,' he said.
JSE director issuer regulation, Andre Visser, confirmed to Moneyweb that the JSE received a complaint in 2021 and investigated the various allegations of non-compliance with the JSE listings requirements relating to transactions concluded between Ecsponent Limited and its group companies.
'Based on the information submitted, together with information obtained and available to the JSE, no contravention of the JSE listings requirements was identified,' he said.
Van Niekerk claimed that prior to his departure, MyBucks had a strong geographical spread, operating in Australia, Europe and Africa, with a highly capable artificial intelligence (AI) development team and best-in-class fintech infrastructure.
'It was not in financial distress at the time. We had won several awards for AI and even went on to sell the Australia operation at a $5 million profit,' he said.
ALSO READ: Ecsponent's preference shareholders fear losing everything
Financial decline and asset sales
Van Niekerk said Afristrat shareholders approved the conversion of MyBucks' R420 million debt in November 2019 at a subscription price of €1 per share, but at the time the initial discussions began, MyBucks shares were trading at €8 per share.
Van Niekerk said that by the time the circulars went out, it was at €6 per share and the shares had dropped to €0.70 per share when shareholder approvals were secured, as a result of the market pricing in the forced conversion.
'This transaction, coupled with subsequent operational decisions, decimated value in both companies.
'MyBucks, as it turns out, was previously servicing Afristrat's entire preference share base.
'Following the conversion and strategic shift, cash flow dried up, and assets were ultimately sold at below-market value to companies linked to Manyere.
'Manyere's actions directly led to the collapse of both entities, and over R2 billion in investor funds were effectively wiped out, converted to worthless Afristrat shares.
'MyBucks SA was eventually placed into liquidation by the Luxembourg tax authority.
'Debt owed by Afristrat to Ecsponent Eswatini became irrecoverable. MyBucks assets were sold to MHMK and its associates, and all the MyBucks technology and subsidiaries now fall under MHMK,' he said.
Van Niekerk added that an independent forensic investigation commissioned by the Central Bank of Eswatini into Ecsponent Eswatini was conducted by Cliffe Dekker Hofmeyr Inc, whose report attributes the E340 million loss 'to failures under Manyere's stewardship – not mine'.
This article was republished from Moneyweb. Read the original here.