By Lwazi Dlamini
THE presentation which Dave van Niekerk through his lawyer Craig Assethon – Smith wanted to deliver at the Status Capital Building Society’s AGM held on Monday was a bombshell, as it was calling for the Wandile Mtshali-led board to resign en masse and a new Board, appointed by members, be put in place to save the organisation from going under.
Dave van Niekerk, a former Board chairperson of Status Capital looks hellbent on reclaiming the directorship of the building society. Assethon-Smith was supposed to make the presentation on behalf of his client at the Society’s AGM held on Monday at Sibane Sami Hotel.
The lawyer who had been given the power of attorney to represent Van Niekerk was unceremoniously chucked out of the meeting by the Board of Status Capital before he could make the presentation on behalf of his client.
Dave van Niekerk is still unable to travel in and out of Eswatini, thanks to a previous order which was obtained and subsequently withdrawn by ESW Investment Group. A red notice against van Niekerk still subsists and he went to court last week seeking an order to have the red notice discharged to allow him to attend Monday’s meeting. The matter was argued in court last week, Thursday and it is now awaiting judgment before Judge Justice Mavuso.
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In the presentation, which Eswatini Daily News has in its possession, Van Niekerk, who left the Board in March 2022, said the Building Society has expanded the number of its branches, increased its expenses and raised around E50 million from members but cannot state where the investment went to.
“The Board members and management team continued to draw salaries even though there is insufficient income to support the expenses. Therefore, member funds are being used to cover overheads which includes branches which have not yet been opened,” part of the presentation reads.
Van Niekerk also highlighted that he is prepared to resume his directorship of the society to chair the Board and assist in creating a strategy which will ensure that all the investors receive the redemption of their investments.
“The first step would be to procure E20 million from subscription by permanent members; procure the appointment of a board at no cost to the members. Then streamline the management and support team. Cutting costs, closing branches and reducing salaries,” the presentation reads in part.
The presentation states that the members need to know that the Building Society is not properly managed, and the current Board and management do not seem to have the ability to turn the building society around. “The permanent shareholders which include Dave which have already invested millions in the society when it was initially established as well as many other members and investors will lose their investments unless matters are put right,” part of the presentation reads.
DAVE WILLING TO RESCUE SINKING SHIP IF . . .
South African national, Dave van Niekerk has thrown the gauntlet on the members of the Status Capital Building Society that if they want him to take full accountability and responsibility, he could do so and rescue the organisation from going under.
Van Niekerk said he is prepared to do this with a board appointed by the members and one “which has no personal agenda or motives.” Van Niekerk, who is also involved in serious litigation is alleged to have been at the helm of the now defunct Ecsponent Investment firm where emaSwati were swindled out of at least E340 million.
He has been however claiming his innocence in the matter that has now resulted in a letter of demand against the regulator Financial Services Regulatory Authority (FSRA) by a company called ESW.
The letter of demand revolves around his alleged relationship with the former FSRA CEO Sandile ‘Chief’ Dlamini.
The contents of the letter are still yet to be tested in a court of law. There is also a court case in the South African High Court in Pretoria brought by Status Capital against Status Asset Management, FSRA and the Financial Sector Conduct Authority- South Africa.
Contained in the presentation that was supposed to be presented on Monday, Van Niekerk was prepared to resume his directorship of the society and to chair the board and assist in creating a strategy which will ensure that all the investors receive redemption of their investments.
“That as investments mature, they will not be used for overheads or lavish branches or lifestyles. Dave will ensure that a fully-fledged banking system complies with the FSRA requirements and will coordinate with the Central Bank to facilitate full banking functionality and transactions at no cost to the Building Society,” he said.
Status Capital Building Society Executive Director Nomfundo Fakudze declined to comment on the presentation. “Honestly, I cannot comment on the presentation which was not delivered during the meeting. It is also too early to comment on such,” she said briefly.
