MD Mbetse wins against Status Capital Building Society – again
By Lwazi Dlamini
Estranged Status Capital Building Society Managing Director Michael Mbetse has come out victorious against the organisation again after the Industrial Court on Tuesday declared his suspension unlawful and set it aside.
The Industrial Court Judge Velaphi Dlamini handing down his judgement said the First respondent, Bismal De Silba, who had suspended Mbetse upon taking over Status Capital Building Society as curator appointed by the Financial Services Regulatory Authority (FSRA), had no powers and/or authority to take disciplinary actions against the Applicant (Michael Mbetse).
“The First respondent and/or anyone acting under his authority is hereby interdicted from taking any disciplinary action against the Applicant. The charge sheet dated 12 May 2025 and the suspension letter dated 14 July 2025 issued by the first respondent are hereby declared unlawful and set aside,” the judgement reads in part.
Mbetse had instituted proceedings in the Industrial Court, where he was challenging his second suspension. In his founding affidavit, he outlined a despite over the powers of the institution’s appointed curator against the backdrop of previous court rulings and his recent attempt to return to his position.
The dispute was centred on a declaratory order sought by Mbetse who argued that De Silva had no authority to suspend him from employment. Mbetse maintains that his contract is with the Board of Directors of Status Capital Building Society and that only the Board can exercise such disciplinary powers.
In his court papers, Mbetse had also stated that the curator’s mandate, as defined in his terms of reference, is ‘clear and unequivocal’ and limited in scope. The affidavit specifies these powers, including taking control of the company’s assets, collecting debts, investigating financial distress and recommending a course of action to FSRA.
Mbetses main argument was that the curator had allegedly overstepped this mandate, instead of focusing on these duties, De Silva had reportedly instituted disciplinary charges and most recently, suspended him again.
Following the court judgement in December 2024 where he won, Mbetse several attempts to return to work were thwarted in what the first applicant describes as ‘defiance of the order of this court.’
On July 14, 2025, Mbetse said, he proceeded to his workplace to resume his duties, having given notice to the respondents (De Silva and Status Capital). He said upon his arrival, he was once again suspended by De Silva.
Judge Velaphi Dlamini dismissed the point in limine (at the beginning) by the respondents (De Silva and Status Capital) and then handed his judgement that the curator had no powers and/or authority to take disciplinary actions against the Applicant (Michael Mbetse) and he also declared unlawful and set aside the suspension letter by Status Capital Building Society allowing Mbetse to return to work on Wednesday.
The curator and Status Building Society have been ordered to pay punitive costs of application filed by the applicant under Case No. 230/2025.
