REVEREND Senzo Hlatshwayo allegedly signed as surety in a lease agreement relating to the Castle Hotel, which was allegedly leased to foreign nationals who were recently arrested at the premises.
It can be revealed that Hlatshwayo signed a deed of suretyship binding him as surety and co-principal debtor in favour of an alleged kingpin in the illegal gambling activity by a foreign national at the Castle Hotel in Mbabane.
The development emerged from a lease agreement signed on February 3, 2026, by the recently arrested Lyu Tou.
According to the agreement, the tenant was expected to pay a monthly rental of E180 000, exclusive of Value Added Tax (VAT) if applicable.
The rent was to be paid quarterly in advance or before the seventh day of each month. The lease agreement further reveals that the tenancy was scheduled to commence on February 10, 2026 and run until March 10, 2031.
“The tenant shall have the option to renew this lease for an additional period of five years commencing on March 31, 2031 and expiring on March 10, 2036, provided that the tenant gives written notice to the landlord of its intention to renew no later than six months prior to the expiration date,” reads part of the lease agreement.
Documents seen by this publication show that Reverend Hlatshwayo appended his name and signature to the agreement, binding himself as a surety for the obligations of the tenant. In the document, Hlatshwayo undertook responsibility for any financial obligations that the tenant might fail to meet under the lease.
“I, Rev Senzo Hlatshwayo, the undersigned, do hereby bind myself jointly and severally as surety and co-principal debtor in solidum to and in favour of Tou Lyu for the payment on demand of all sums of money which may be owed by the lessee,” reads part of the lease agreement.
The lease agreement also outlines the intended use of the premises. According to the document, the property was to be used strictly for hotel operations and related services.
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“The premises shall be used solely for the purpose of operating a hotel business, including accommodation, hospitality services and ancillary activities customary to a hotel operation, and for no other purpose without the prior written consent of the landlord,” reads the agreement.
In addition, the lease details the annual rental escalation that would apply over the duration of the contract. The rental amount was set to increase annually on the anniversary of the commencement date.
According to the agreement, the first escalation would take effect in March 2027, covering the period from March 2027 to March 2028, and would increase by 7%. The document further notes that the escalation would continue over the years, with a 10% increase applied during the fourth anniversary period of the lease.
“A 10% escalation applied on the fourth anniversary, being March 2030 to March 2031,” reads part of the lease agreement.
The lease agreement also makes provision for the payment of a security deposit. It stipulates that upon signing the agreement, the tenant would be required to pay a deposit equivalent to one month’s rental.
According to the document, the tenant was expected to pay E180 000 as a deposit upon signing the agreement. The funds would be held by the landlord as security for the due performance of the tenant’s obligations under the lease.
The agreement also sets out conditions regarding the state in which the premises should be returned at the end of the lease period. It states that upon the expiration or termination of the lease, the tenant would be required to surrender the premises in the same condition in which they were received, subject to any authorised improvements made during the tenancy.
The agreement further provides that a joint inspection of the property would be conducted before the tenant vacates the premises. According to the document, the inspection would have to be conducted not later than seven days prior to the tenant vacating the property, during which any damages would be identified and addressed.
Should any damage be identified during the inspection, the tenant would be required to cover the cost of repairs before leaving the premises.
