- Financial Service Regulatory Authority calls for calm, assures members.
- Members say Status Capital is still viable, demanding an end to the curator’s mandate
Mbabane – Members of Status Capital Building Society (SCBS) had to take a resolution to write their demands to the Financial Services Regulatory Authority (FSRA)’s assigned curator, Bismal de Silva, asking him to declare the status of a E20 million payment allegedly facilitated by former director Dave Van Niekerk.
In a letter obtained by Independent News, van Niekerk is leading the charge, urging SCBS members to adopt a resolution to query the FSRA about the curator’s actions.
Van Niekerk has exclusively told Independent News that he is going to ask the whereabouts of an E20 million balance out of E35 million due to SCBS members from FSRA, following de Silva’s announcement that only E15 million would be distributed instead of the full amount. He said de Silva still hasn’t explained where and how the E20 million went, while knowing very well that SCBS confirmed receipt.
Complicating matters, the Swaziland Debt Factoring Firm (SDFF) has filed a counter-suit against SCBS for E176,193,914.49, claiming losses over a four-year period. SCBS’s original lawsuit against SDFF totals E57.9 million and seeks liquidation due to non-payment. However, SDFF argues that its counterclaims might eliminate its debt to SCBS.
“Why is the curator in conflict with SDFF, which is willing and able to pay SCBS? This legal battle is wasting member funds. The curator must clarify the E20 million before pursuing payment from SDFF,” Van Niekerk stated.
Members are increasingly vocal about their dissatisfaction with the curator’s management. They also want confirmation from the FSRA that the curator’s mandate hasn’t been renewed, van Niekerk said. They are reportedly refusing any settlement until De Silva is removed and are seeking confirmation from the FSRA regarding the status of the curator’s mandate.
Van Niekerk insists that his interests are in seeing all SCBS members who initially invested with it getting better rewards for their investment.
He disputes SCBS being rendered to have entirely failed to the point of seeking its liquidation. Van Niekerk said SCBS is still viable but needs to reform the current status and remove De Silva as liquidator.
He outlined five main concerns:
- Six out of seven investments have been repaid.
- SCBS has profited from these investments under the original model.
- The core business model of raising funds from members and investing them at higher yields was effective until management and the FSRA intervened.
- Legal fees spent pursuing SDFF are wasteful, as SDFF has expressed willingness to repay, provided funds go directly to members.
- Meetings are being held without proper notice, limiting member participation.
He said as one of the permanent members, he would love to participate.
“When we as permanent members attempt to call meetings, we are told that ours are “illegal.” This double standard has persisted, and unfortunately, misinformation continues to circulate.
“To clarify what I know: when we served as directors at the Building Society, we facilitated several investments. After management took over and I left the board, they insisted those investments were not aligned with their preferences and should be liquidated. Six of the seven investments were fully repaid to the building society,” van Niekerk said.
Van Niekerk also refuted claims that SDFF owes E124 million, stating the actual debt is approximately E60 million, a figure he believes has been inflated by management and the curator. He noted that SDFF has made multiple repayments and extended loans to members against their building society investments.
“SDFF has already made several repayments over time, and in fact, has also extended loans to members against their building society investments. Even if SDFF were to pay the full E60 million today, the concern is: how much would actually reach members, given that E20 million of the previous repayment was misappropriated under the curator’s watch?” Van Niekerk stated.
He said members need two things clarified to them:
- how much is due to permanent members, and
- how much is due to ordinary members.
Van Niekerk advocates for SCBS to appoint its own management team, suggesting that after winning a court case, Michael Mbetsi should be reinstated as managing director.
“The FSRA must remove the curator, who has clearly failed to comply with his mandate. We continue to hear that his mandate has ended, yet he remains involved and continues to call meetings.
“To that end, we have arranged for an attorney in Eswatini to write formally to the FSRA on behalf of the members, asserting our collective wish to take back control of the Building Society. In conclusion, our objective as permanent members is straightforward: to reclaim control, ensure transparency, and restore funds to the rightful beneficiaries—the members of the Building Society,” he said.
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