By Ncaba Ntshakala
The Swaziland Building Society (SBS) has achieved a major milestone, with 94.67% of its members voting in favour of its conversion into a fully-fledged bank.
This was revealed by SBS Board of Directors Chairperson Elijah Simelane during a media briefing held at the Open House Hotel.
The announcement follows a Special General Meeting (SGM) attended by over 2,700 members, where the historic vote took place.
Simelane reported that out of the 2,733 votes cast, 2,684 were in support of the conversion, surpassing the regulatory requirement of 75% approval.
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Only 82 members, representing 2.89%, voted against the motion, while 47 members, equating to 1.66%, abstained. Additionally, 22 spoiled votes, constituting 0.78%, were recorded.
To ensure transparency, SBS engaged the services of SNG Grant Thornton to oversee the voting process. Simelane noted that due to the high turnout, vote counting could not be completed on the day of the meeting and was finalized at SNG Grant Thornton’s offices.
Again, Simelane addressed concerns raised by those who opposed or abstained from the vote, explaining that their hesitation stemmed from fears of the unknown, including apprehensions about the potential risks to their funds.
However, he assured members that every step of the process adhered to strict regulatory guidelines, and the conversion had been planned meticulously to ensure financial stability and growth.
Simelane emphasized that SNG Grant Thornton is a reputable firm and that no foul play occurred during the voting process.
Furthermore, PwC was engaged separately to guide the technical aspects of the conversion, which he said adds another layer of assurance.
The regulatory framework for the conversion required not only a supermajority vote but also a financial value threshold.
Simelane revealed that the share value of those who voted in favour amounted to E691,122,613.75, representing 63.42% of the total value.
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By contrast, those who voted against held shares valued at E5,861,303.75, equating to 0.45%, while the shares of those who abstained totalled E6,582,340.22, or 0.6%.
This financial endorsement satisfied the regulator’s second condition that at least 51% of the value be represented by affirmative votes.
During the briefing, questions arose regarding the government’s role in SBS. Managing Director Mbali Sibanyoni clarified that the government is a permanent shareholder in the institution and was fully engaged throughout the conversion process.
She highlighted the government’s dual role as a shareholder and as a gatekeeper of the financial sector through the Ministry of Finance, which ensures alignment with national financial stability objectives.
