MBABANE –As the FSRA continue to punch holes in the Status Capital Building Society operations,suspended MD,Michael Mbetse says the Legal and Compliance office must be held accountable instead.
Sanele Kunene is the former Status Capital Building Society legal and compliance officer .
The Times of Eswatini recently reported that the regulator was accusing the SCBS of operating outside its license and operating a pyramid scheme.
This according to the estranged MD speaks to compliance.
Mbetse defended his role as the Managing Director and explained that the SCBS had a legal officer whom the organisation trusted with all its compliance issues or requirements.He also pointed out that the legal officer was also an employee of the Financial Services Regulatory Authority, something which he described as a potential added advantage for the building society.
He also explained that Status Capital invested funds to various companies through debenture loan agreements that were crafted by the legal and compliance office.
“When I joined the organisation in May 2020, the balance sheet reflected a sum of plus or minus E5.6 million. There was a team of eight independent consultants. I increased them to 18 wherein a target of E5 million was set per month to solicit funds from the public with a view to accumulate a capital base. A 13% interest rate was promised to the Investors. By December 2021 the capital accumulation was at E174 million. These were total money from the Investors mainly Pensioners.”
Mbetse continued to explain that a subsidiary company, SDFF, was bought from two individuals who retained only 10%. He went on to highlight that the objective of the subsidiary company was to perform tasks that ordinarily a building society couldn’t perform, hence he also argued that it is was a lie that Status Capital was performing tasks outside it’s granted licence.
Mbetse also pointed out that the intended plan was to give investors 13% and the 6% for Status upkeep and overheads.
“By then we were faced with the unpredictable COVID 19 hence no one knew the future hence investing was the only possible means of creating a hopeful future. The interest rates in other institutions were relatively low, so that was our strategic competitive advantage plan to ensure that even when then investors funds have matured, but would not find a better alternative. It is therefore a lie that the 13% offer to investors was meant to create a pyramid scheme kind of business practice.”
Mbetse in addition,explained that similar financial entities in the country operated in this manner.
“These entities loan out unsecured funds up to E500 000 at high interest rates up to 35%. They can pay out to their investors any rate they so agree upon and there’s no law that restricts that. If they were to pay out 25% out of the 35% so that the investors would not move their investments, does that then constitute a pyramid scheme or money laundering?”
“Most importantly and and in a nutshell,the regulator has been conducting audits and issuing licence renewals since the establishment of Status Capital Building Society; when then did they discover that it is operating a pyramid scheme and money laundering, that it is in a life support like Michael Schumacher, as the current Curator makes reference of the Society.”
He also argued that the former Curator had a liquidator Mentality.
“What positive contribution could he have made if he has the mentality of a Liquidator. Liquidators pull off the plug once they pay themselves huge funds. Why is the Regulator rushing to liquidate the Society and even do the process during their Christmas break. The offices of the Regulator closed for business on the 17 December 2025 and only resumed business operations on 06 January 2026, but were busy with Status Capital issues throughout, why aren’t they allowing processes to take place accordingly, moreso because the investors they claim to protect were not informed of what they were actually doing.Besides, the investor who owes the funds is paying them back.”
“All the funds that were invested in short term have been fully paid and E45 million, which is about 50% on the SDFF long term investment has already been paid. Members are crying for a part payment for their upkeep, but FSRA doesn’t do what they say. They previously said that they do not intend to liquidate Status Capital, but boom during their office closure they declared a provisional liquidation without liaising with the Shareholders and against their previous statement.”
When reached for comments.the former SCBS legal Officer,Sanele Kunene said this has been well documented since 2022 and had shared documents explaining this.
“I can share the affidavits which detail clear what happened and this is information filed in court.”
He also pointed out that the former curator was against liquidation.
“They removed him and replaced him with their own person,it was a little bit untidy.”
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