By Sifiso Sibandze
Status Capital Building Society Board of Directors have suspended its founding Managing Director Michael Mbetse on allegations of poor performance.
Through its well-placed sources, the Eswatini Daily News has learnt that Mbetse was suspended in mid-May, through a letter that was served to him by a Deputy Sheriff, Sandile Dlamini at the behest of MTN Eswatini Chief Executive Officer (CEO) Wandile Mtshali in his capacity as Status Capital Board Chairperson.
Following the dramatic suspension of Mbetse, Nomfundo Fakudze, whose substantive position is Executive Director, is holding the fort, albeit temporarily, pending the finalization of the former’s case.
Mtshali, the Status Capital Building Society’s board chairperson, confirmed Mbetse’s suspension but did not detail the reasons behind the board’s decision to put the MD on ice.
Responding to a questionnaire sent to him through the executive director, Mtshali said: “The nature of your questionnaire asks that we disclose internal policy information which violates employer and employee confidentiality laws. The questionnaire further points to internal organisational matters which are by nature not subject to public consumption.”
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He went on to say that any significant developments at the organisation will be communicated, through media and other channels, “to all our stakeholders as we remain committed to the country’s economic development and to all our members.”
Mbetse flatly refused to comment on the issue of his suspension and directed Eswatini Daily News to contact the board chairperson regarding the issue.
“I cannot respond to your question pertaining to what you are asking me. Please contact the Chairperson, Wandile Mtshali as he is the only one in a position to shed light on the issue you are enquiring about,” Mbetse said.
Despite the board chairperson and the MD’s reluctance to share information on the matter, the EDN has reliably established that there has been a long-standing feud between Mbetse and some board members who are reportedly ‘hell-bent on ousting him from the organization’.
Sources have told the publication that there is a board member whose name is known, who allegedly threatened to resign, citing the MD’s incompetence and made a condition to withdraw the resignation if he is appointed Executive Director.
However, instead of appointing the aggrieved board member to the position he craved, the board appointed Nomfundo Fakudze as Executive Director. Fakudze was appointed in April 2023 with the core mandate of driving business sustainability and continuity.
According to the board, Fakudze is bringing 17 years of vast experience providing bespoke investment solutions for major-league South African-based financial institutions, namely National Empowerment Fund (NEF), Public Investment Corporation, Investec Limited and ABSA Limited.
Status Capital hogged newspaper headlines last year in December following the disappearance of its E82 million. The matter was between Status Capital and Swaziland Debt Factoring Firm. It was stated in court papers that on July 1, 2020, in Ezulwini, Status Capital, represented by Van Niekerk who is popularly known as DVN and Claude Scholtz, in their official capacities, entered into a written debentures agreement with Marthinus Prinsloo, who represented the Swaziland Debt Factoring Firm, for an investment amount of E67 293 700.
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The money was to be invested in the financial services company. However, the amount was said to be now over E82 million because of arrears. Despite demand, Swaziland Debt Factoring Firm refused to make a payment or cede the security as provided for in the debentures agreement and cession agreement.
In terms of the agreement, Swaziland Debt Factoring Firm became the issuer, while Status Capital was the investor. The intention was that the two entities form a lending partnership.
Allegations are that over E82 million invested through Status Capital Building Society was diverted out of the country without authorisation, by Swaziland Debt Factoring Firm. Status Capital was granted an interim order interdicting and restraining Swaziland Debt Factoring Firm from transacting, making and transferring any payment from its bank accounts held with First National Bank (FNB).
By being the MD of Status Capital, Mbetse was the one who took the matter to court. However, the court dismissed Mbetse’s application to freeze Swaziland Debt Factoring Firm accounts and ordered that he pays the costs.
