There may finally be light at the end of the tunnel for thousands of emaSwati who lost their savings in the collapsed Status Capital Building Society (SCBS), after the curator overseeing the scheme, Bimal da Silva, recommended a partial payout of E15 million to affected investors.
The announcement was made during a packed special meeting at the Happy Valley Hotel and Casino in Mbabane, where scores of frustrated members gathered to hear the latest developments in a saga that has dragged on since the Financial Services Regulatory Authority (FSRA) placed the institution under curatorship in 2024.
However, he noted that there is a challenge to the plan, namely an ongoing court case, and that disbursing part of what has been recovered will reduce the interest currently being generated. At present, E200 000 is being generated per month in interest.
“Secondly, there are members who have taken us to court, requesting that, from the available money, they be given their initial investment so that they leave in peace. However, as curatorship, we are challenging that in court. We want everyone to be paid according to a standard formula,” the curator said.
Although the E15 million cannot be disbursed for now, pending the court case, the curator shared a breakdown of how much each member would receive. He used an example of a member who invested E100 000 and was paid out E10 000 in interest when operations were normal. The member, in this example, withdrew E15 000 from his account and later took a loan of E20 000.
He clarified that some members received monthly interest payments, others withdrew part of their investments, and some took loans. In the case of the cited investor, the curator said such a member is owed E55 000 due to prior withdrawals.
Explaining the formula, the curator noted that the investor could receive 10.67 cents for every E1 invested. This means that with the proposed payment of E15 million, the investor could receive approximately E5 868.50.
“Basically, this means we will deduct the E10 000 interest, the E15 000 withdrawn, and the E20 000 loan taken. The payment will depend on what each member did, not necessarily on how much they invested,” the curator said.
While the formula seemed clear, some members expressed dissatisfaction. One questioned the rationale for disbursing E15 million when recovered funds stand at E35 million.
“If you can’t collect from the people who have to pay, you are saying that Status should take the liquidation route. That is where it is going. FSRA is pushing you to liquidate, that is not a secret, but you are presenting here as if that will take some time. Let us not take emaSwati for a ride,” the investor said, drawing applause.
In response, the curator said he has been working hard behind the scenes to ensure investors receive their funds. “My intention is to pay you the full E33 million and try to collect as much money as possible. I do not have an agenda with anyone else. I am here as a professional,” he explained.
On the proposed payment, some members sought clarity on when the disbursement could happen. At that point, an FSRA representative addressed the concerns. She noted that the curator had been working alone despite the scheme belonging to the members who invested their money.
One investor asked whether the curator had considered working with members to collect the funds. “The curator is now citing the challenges that have been brought by the court, yet when he started, he committed that all in court would be brought to the table in order to reduce costs,” the investor submitted.
The curator responded: “I am working in the best interest of the people, I know what I am doing. I am not in for immediate liquidation for now; we have to collect the money and give it back to the people and that is what I am working for.”
The curator’s legal advisor, attorney Gabsile Sacolo, clarified on his behalf, explaining that the situation is business unusual and that the curator trusts his judgement, adding that it was unnecessary to appoint a special body. Other members expressed suspicion that certain individuals were being protected, and questioned why the curator’s term had been extended repeatedly.
FSRA’s Dlamini stepped in to explain that no individual could be protected. “That is why we hired a curator to analyse, using his judgement, and follow the trail of the monies. A lot has been said regarding liquidation, we are still pushing. That is why we kept extending the curator’s term. He was initially appointed for three months, then six months, and now it is almost a year. We are trying every means to find the money,” he said.
Meanwhile, the curator began his presentation with an overview of the scheme’s financial status. He reported that the current investment portfolio includes a balance of E22 623 959 in African Alliance at an interest rate of 9.78 per cent, and about E10 million in Central Bank treasury bills at 9.02 per cent.
It was explained that if the scheme goes into liquidation, about E3 million would be needed to cover costs, E6 million to pay creditors, and about E1.2 million for staff retrenchment.
The meeting also heard that a court date of October 30, 2025, has been set to start the liquidation process for major debenture issues due to non-payment of funds to SCBS. Negotiations with the debenture holders are ongoing, but no agreement has been reached.
