MBABANE -In a shocking twist of events,weeks after Bimal De Silva was ‘sacked’,our news desk can reveal that among his recommendations,was that the SCBC should not be liquidated.
This is contained in court documents that this publication has in possession.
This is not only an irony but a blunder, considering the fact that one would assume that the Curator was hired to save the situation.
It is inevitable to assume or expect the FSRA to appreciate,respect and value an curatorship recommendation.
The Financial Services Regulatory Authority turned a blind eye and chose the opposite – to apply for liquidation.
As seen in the report,some of the recommendations that the former curator made included that the FSRA should approve the migration of the entity SCBS from the existing entity to new entity (an investment entity).
“FSRA does not pursue liquidation option since the entity since the entity can be revived.FSRA approves the continuation of the curatorship to executive the recovery strategy as proposed,duration of which should be decided by the FSRA
As demonstrated the opposition by the FSRA to liquidate SDFF on a point of precedence and law results.This then means that an additional investment of E40 million is needed to fund the entity and E35 million will potentially be recovered SDFF.Hence it is recommended that the FSRA’s opposition to liquidation be withdrawn to enable the curatorship to collect the maximum amount of funds from the SDFF.”
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 about two months ago that he was 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 reignited concerns among members, some of whom have been calling for greater transparency and for the society to be returned to member control.To calm the situation,the FSRA appointed one of its senior managers Mbongiseni Nkambule something which provoked more scrutiny.
Through court papers,the investors have lamented the fact that Nkambule is compromised because in the absence of the Chief Executive Officer Ncamiso Ntshalintshali,he acts in the latter’s position.
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 His Majesty King Mswati III.
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.
About two weeks ago, 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.
On the flipside,the FSRA is accused of avoiding accountability over the funds collected before the appointment of the first curator- Bimal Da Silva.
This was submitted through the intervening parties’ court papers submitted in court on Monday.
It is worth noting that the renewal of the 2025 licence was done after the appointment of the curator contrary to the reports that it was done before.
“The SCBS was authorized to commence business on December 01,2024 up to November 30,2025.”
Therefore,the defence argues that it is only the Swaziland Debt Factoring Firm that required further engagements not the other entities.
“The other investments had already been paid when the curator was appointed.It appears that the FSRA is avoiding accountability regarding the funds that were collected.The funds that were recovered were invested in Status Asset Management.The compliance office was responsible for recovering those funds.However the FSRA decides to avoid this subject.”
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