Times Of Swaziland: CONCERNS AS BLACKLISTED MEMBER IN BUNYE BETFU BOARD

CONCERNS AS BLACKLISTED MEMBER IN BUNYE BETFU BOARD
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BY STANLEY KHUMALO on 21/04/2021 08:20:00


MANZINI – A Board member of Bunye Betfu Buhle Betfu Cooperative was elected
into the position despite being blacklisted for alleged failure to pay certain
debts.
This is much against the regulatory laws set by the Ncamiso Ntshalintshali-led
Financial Services Regulatory Authority (FSRA). The regulations among other
things state that the ongoing success of a savings and credit cooperative
society (SACCO) starts with good governance. Bunye Betfu is said to be one of
the largest SACCOs in the country and its value is estimated to be more than
E250 million and with more than 6 000 members.
The membership consists of civil servants and few government parastatals’
employees (majority being civil servants).
Governance
According to the SACCOs Licensing and Reporting Guidance Notes Part IV,
‘checks and balances of good governance are essential to protect the interests
of SACCO members. Good governance means going beyond compliance’. According to
the report by the FSRA, this means taking a leadership role in instituting and
maintaining practices that represent strong business ethics while ensuring
consistent communication. “This guidance note seeks to ensure that Boards are
committed to the constant evolution of their best practices and adopt those that
enhance their Board. Governance is vital to ensure that; SACCOs are managed and
overseen by competent personnel, at both Board and management level; that
corporate self-discipline is promoted in the governance and management of
SACCOs; and that Board and management make reasonable and impartial business
decisions in the best interest of the members,” reads in part the governance
notes.
However, despite this, concerns by some members of Bunye Betfu that in October
2019, the cooperative underwent its elections of electing a new Board. The
members claim that part of the requirements was that a member who wanted to be a
Board member should be in good financial position with the SACCO, a clear ITC
report which states that he/she does not have any default judgment against
him/her and that prospective Board member must be in compliance with Section 56
of the Employment Act (1/3 on deductions from payslip). Despite this, the
members claimed that there was a Board member who did not meet all these
requirements. Furthermore, they claimed that he had had been blacklisted by ITC
for failure to honour his financial obligations with a furniture shop.