By Lwazi Dlamini
A protracted court battle that has lasted a gruelling 18 months has ended with the Industrial court ruling in the favour of embattled Status Capital Building Society Michael Mbetse.
Mbetse, a founder member of Status Building Society, was suspended in mid-May 2023 on allegations of poor performance and he learnt of his suspension through a letter that was served to him by Deputy Sheriff Sandile Dlamini at the behest of MTN Eswatini Chief Executive Officer Wandile Mtshali in his capacity as Status Capital Board Chairperson. Mtshali later relinquished the position.
Following the dramatic suspension of Mbetse, Nomfundo Fakudze, whose substantive position was Executive Director, then held fort.
Fakudze was appointed in April 2023 with the core mandate of driving business sustainability and continuity.
Mbetse was then dismissed with the Building Society insisting that its decision to fire the MD was untenable following his refusal to subject himself to a disciplinary hearing.
The matter was first filed in court on June 23, 2023, where Mbetse was seeking to stay at the disciplinary hearing into which he had hauled on allegations of serious misconduct.
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Mbetse challenged his suspension arguing about the process and the board’s oversight.
Status Capital refuted this in their answering papers, stating that he ultimately reports to the board and therefore the board has the necessary mandate to suspend him.
The board maintained that since Mbetse had not appeared before the independent disciplinary committee’s chairman even once, he had no grounds to criticize the process, nor can the court interfere in an incomplete disciplinary process.
Amidst these proceedings, Mbetse laid serious accusations against the board of Status Capital, which have been refuted by the Building Society, leading to it also seeking an order to strike them out of the record as they are scandalous, vexatious and/or irrelevant and aimed at muddy the waters and defaming Status Capital.
The then Status Capital Chairman of the Board Wandile Mtshali stressed in his answering affidavit that Mbetse had no defence against the allegations levelled upon him, accusing the MD of seeking to discredit the very organization employing him in a desperate attempt to have his dismissal overturned.
Whilst the matter was pending in court, subject to various postponements, the board of directors resolved to summarily terminate the MD’s services, which he argued, through an urgent application filed on September 8, was unfair and unlawful.
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The Industrial Court, this week, ruled in Mbetse’s favour.
In the judgment delivered by Industrial Judge, V.Z Dlamini, it highlights that Michael Mbetse had filed an urgent application to interdict an ongoing disciplinary hearing pending a declaration by the Court that his suspension and disciplinary hearing were unlawful.
Furthermore, the applicant (Mbetse) sought than order for the removal of the 3rd respondent (Nomfundo Fakudze) who had been permanently appointed in his position while the disciplinary inquiry was pending.
Respondents make undertaking to stay disciplinary hearing pending finalization of application – interdict deemed to have been granted by consent.
Judge Dlamini, in his judgment, said the suspension of the applicant (Michael Mbetse) by 1st respondent (Status Capital Building Society) and second respondent (Wandile Mtshali) is declared unlawful and set aside.
“The disciplinary hearing of the Applicant instituted by the 1st and/or 2nd respondent is declared unlawful and set aside.
The 3rd respondent (Nomfundo Fakudze) appointment as Executive/Managing Director of the 1st Respondent is declared unlawful and set aside,” reads part of the judgement.
Most emphatically, the judgment states that second respondent (Wandile Mtshali) and 3rd respondent (Nomfundo Fakudze) are directed to pay the costs of the application jointly and severally, the one paying the other to be absolved.
The judgement further states that, the second respondent (Wandile Mtshali) and 3rd respondent (Nomfundo Fakudze), in their personally capacities, should be ordered to pay the Applicants (Michael Mbetse) costs because “they deliberately acted mala fide; the first respondent (Status Capital) should not be made to suffer for their unlawful acts.
Status Capital Building Society has continued to incur losses as they increased significantly to reach E31 920 000 from E9 558 000 losses recorded in 2021.
The losses are reflected in the society’s statement of profit and loss and other comprehensive income for the year ended June 30, 2023.
Status Capital Building Society suspended payments of monthly interest to its members in early July. The Building Society lost about E100 million it had invested in the now infamous Ecsponent E340 million scandal.
