swaziland times

Mbabane – Status Capital Building Society has suspended monthly interest payments to its members.

Members were informed of the latest developments during a meeting held at the Bethel Court in Ezulwini on Monday. There are over 121 investment account holders who receive interest from Status Capital every month. After the meeting, members told this publication that they were unhappy with the unfortunate news they had heard.
According to members, they were told that the group’s coffers were depleted and they would have to wait at least three months before they could draw again.

pause

Members noted that after the suspension of interest payments on earnings, they no longer believed in anything and doubted whether they would be able to recover the money they invested.
They said the news was doubly tragic for some of them who had invested in Ecsponent, now Eswatini Investment Group (Pty) Ltd. When asked how much they have invested in Status Capital, members responded that it is €50,000 and above, depending on the amount of severance pay one receives from various areas of work. They said Status Capital officials warned them not to tell or give the information to anyone, but they could not remain silent because of their frustration.

According to members, most of them are retirees who need money to make ends meet. “The money helps us a lot, we can buy sugar, bread, cornmeal and many other things because we no longer have salaries,” members said. When asked about the members’ allegations, Status Capital Building Society Managing Director Sibusiso Dlamini said it was no secret that the society was facing challenges due to the alleged misappropriation of over EGP100 million of investors’ funds by some of its co-directors. The managing director said the alleged misappropriation of funds had led to significant delays in the payment of monthly interest to investment account holders, causing great distress to members.

He said that despite the turmoil, the organization will do its best to weather the storm and recoup members’ investments. Dlamini said this had resulted in ongoing legal proceedings, affected critical resources necessary for the institution’s continued viability and jeopardized the livelihoods of investors.
In the process of trying to recover these funds, the general manager said they are currently experiencing considerable delays in paying the monthly interest due to account holders.

“We recognize the hurdles that need to be overcome to correct these problems, and we will continue to work tirelessly to address them. We are confident that our ability and the power of justice will lead to successful resolution of these issues.” Dlamini said they fully recognise and deeply understand the difficulties this situation has caused to investors and sincerely request investors to continue to be patient and supportive as they go through this complex period.

disappointment

Dlamini said that while some members were disappointed upon learning the news, many of them supported the entity in holding those responsible to account and ensuring restoration. He said members were further informed of evidence that efforts to obstruct its operations were deliberate and financially supported by a former director through his various corporate schemes. Dlamini said that while recent developments were undoubtedly distressing, it must be acknowledged that many members had been able to receive payments to date despite the financial pressures they faced.

When asked if the association had any other remedial measures to avoid the situation, the MD said they were taking all possible steps to ensure that normal operations were resumed as soon as possible. He mentioned that engagement with investors and stakeholders has proven to be constructive, adding that the support shown by all parties involved further confirms their confidence in the future path to ensure that justice is served.

resolution

Dlamini said the association will continue to uphold the resolutions made at the last Extraordinary General Meeting, which was convened by members to continue to take legal action against former directors and related investment companies; ensure that payments to members due are made in stages after receipt of the fund bonds, and promote open and transparent communication between the organization and its members on the affairs of the association. In this regard, the managing director said their resolve is unwavering. Meanwhile, Dlamini said they appreciated the media attention but urged them to respect their process and give them the space they needed to resolve challenges internally to avoid affecting the process. Notably, the company had applied to the court after learning that more than €82 million invested by Status Capital Building Society was allegedly transferred out of the country without authorisation by another local company.