…as Members Seek Clarity on Future of Funds
MBABANE – The curatorship of Status Capital Building Society (SCBS) has officially come to an end, raising urgent questions among members regarding the management of funds, records, assets, and outstanding recoveries.
Former Curator Bimal de Silva confirmed to the media that he is no longer employed by the Financial Services Regulatory Authority (FSRA), which appointed him to take control of the society during its period of financial distress.
De Silva maintained that he had fulfilled the mandate assigned to him by the regulator.
“Please contact the FSRA as to who is now responsible for handling members’ funds,” he said. When asked about allegations that a portion of the recently recovered E35 million was unaccounted for, he responded: “The money is in the bank and is accounted for. I cannot comment any further.”
His departure has reignited concerns among members, some of whom have been calling for greater transparency and for the society to be returned to member control.
Approximately two months ago, long-standing member and former non-executive board member Dave van Niekerk cautioned members against depositing or making payments while the society remained under curatorship.
This came amid claims that a significant portion of the recovered E35 million could not be properly traced.
Van Niekerk stated:
“My commitment to the Society and each one of you remains unwavering. Together we must address the curator directly and ensure that the FSRA works with us to appoint a board of directors chosen by you, the members. From there it will be for us to collectively decide the future of our society.”
Van Niekerk is credited with assisting the society in recovering the E35 million, a commitment he reportedly made to the King of Eswatini.
Reports have surfaced suggesting that E20 million of the E35 million was initially unaccounted for, leading to heightened scrutiny and calls for protective measures around any additional repayments.
However, De Silva insists that all funds received during his tenure were properly accounted for and remain in the society’s bank account.
Last week, SCBS announced a major breakthrough in recovering funds previously invested with SDFF.
According to Van Niekerk, extensive engagements over several years have resulted in the full settlement of all investments made during his time as a director, with SDFF now agreeing to repay a total of E85 million, including capital and interest.
He confirmed that the first E17.5 million has already been paid and reflected in SCBS bank statements, with further instalments expected over the coming months.
Despite this progress, Van Niekerk expressed concern that members currently lack visibility into how recovered funds are being managed, particularly while the society remains under regulatory control and certain leaders—including Michael Mbetse—remain excluded from operational oversight.
A faction of members is mobilising a petition questioning the transparency of the curator’s appointment and alleging a potential conflict of interest, given that the curator is an FSRA employee.
Members argue that the FSRA previously opposed SCBS’s application to liquidate SDFF in an effort to recover funds and that the regulator has allegedly restricted the disbursement of funds since repayments began.
They further claim that De Silva’s contract was terminated after he resisted a push towards liquidation—highlighting concerns that liquidation costs could further erode the society’s remaining resources.
These allegations could not be independently verified at the time of publication, and the FSRA has yet to issue a formal response to the latest developments.
Under the Financial Services Regulatory Authority Act, a curator is appointed when a financial institution experiences significant financial or operational difficulties.
The curator’s responsibilities include:
- Taking immediate control of the institution’s operations, books, assets, and records
- Recovering monies owed to the institution
- Investigating causes of financial distress
- Referring any suspected criminal activity to law enforcement
- Advising the regulator whether the institution can be rehabilitated
The FSRA has previously stated that the curatorship process is intended to be transparent and in the best interests of members and stakeholders.
What Happens Next?
With curatorship now concluded, members are seeking clarity on:
- Who currently controls SCBS’s accounts and assets
- How recovered funds will be managed
- Whether members will regain governance of the society
- What steps the FSRA will take to restore confidence in the institution
The FSRA is expected to address these matters in the coming days, as members push for full transparency and a roadmap for the society’s future.
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