Times Of Swaziland: STATUS CAPITAL’S E100 MILLION LOSS: ACC’S 11 WARRANTS OF ARREST FOR  TOP PERSONS

STATUS CAPITAL’S E100 MILLION LOSS: ACC’S 11 WARRANTS OF ARREST FOR  TOP
PERSONS
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Ntombi Mhlongo on 15/12/2024 17:12:00


MBABANE – Following the discovery that around E100 million invested by
emaSwati in Status Capital Building Society was allegedly siphoned out of the
country, the Anti-Corruption Commission (ACC) is hot on the heels of certain
persons of interests in the matter.
The Times SUNDAY has established that the ACC has 11warrants of arrests in
relation to the case. Two of them, it has been gathered, are based locally,
while the rest are believed to be in neighbouring South Africa. The individuals,
and the positions they hold or once held at the entity, cannot be named as they
have not been charged and the ACC is still continuing with its investigations.
Inter-linked
It has been gathered that this part of investigation is inter-linked with that
of Ecsponent, whereby over 1 000 emaSwati lost E340 million. The link is based
on the fact that among the 11 persons of interest, are those who have also been
implicated in the Ecsponent saga. Worth noting is that the Parliament Select
Committee elected to investigate how emaSwati lost their investments after
investing in Ecsponent became aware of the Status Capital issue. As contained in
the final report with recommendations, the Parliament Select Committee got the
news through a submission that was made by the Investor Relations Committee
(IRC) appointed by ESWIG, the former Ecsponent Eswatini.
Havoc
According to the Parliament Select Committee’s report, the IRC raised that the
unfortunate reality is that whilst the Ecsponent matter was receiving the
attention of emaSwati, including Parliament, the same people who were at the
helm of the Ecsponent saga wreaked havoc at Status Capital Building Society,
where around E100 million has reportedly been lost in the same manner as it
happened at Ecsponent. “Some emaSwati either had investments in both companies
or resigned from Ecsponent and invested their money in Status Capital Building
Society (SCBS),” the IRC reportedly told the Parliament Select Committee.
Also, it is contained in the Parliament Committee’s report that a submission
was made that an urgent investigation into Status Capital must be commissioned
to establish linkages with the Ecsponent saga and to ensure that intervention
into addressing this matter is timeously implemented. Worth noting is that it
has been reported that the Royal Eswatini Police Service (REPS) has received
authorisation to examine more than five bank accounts linked to prominent
individuals in the investigation into missing funds invested by over 1 000
emaSwati and institutions in Ecsponent.
Investments
This was after the Attorney General, Chief Sifiso Mashampu Khumalo, told
Parliament that there is a warrant of arrest against individual/s allegedly
associated with the missing E335 million Ecsponent investments. However, as
reported by our sister publication the Times of Eswatini, REPS has neither
confirmed nor denied the existence of the warrants.
The issue of the around E100 million in Status Capital became public knowledge
when the SCBS took the legal route last year after discovering that the money
had allegedly been siphoned out of the country without neither approval nor
active involvement of the society’s management.
The ACC is said to have been investigating the matter for months, after which it
made an application to obtain the warrants of arrests. When called for comment
regarding the warrants, the Director of the ACC, Jabu Phakathi, explained that
the entity operated within the ambit of the law, which prohibited the disclosure
of information or details of any person who was the subject of an enquiry or
investigation. Phakathi cited Section 18 of the Prevention of Corruption Act,
2006 and then said: “In terms of the law, we do not talk about what we are
doing. Therefore, we can neither confirm nor deny if we are investigating or
have warrants against the persons you are referring to.”
Arrests
The issue of the around E100 million became public knowledge when the SCBS took
the legal route last year, after discovering that the money had allegedly been
siphoned out of the country without neither approval nor active involvement of
the society’s management. The ACC has a three-pronged legal mandate of
prevention, whereby it is supposed to examine practices and procedures and
advice on ways of preventing corruption. It also has an education role of
empowering the public and private bodies and the general public on the forms and
dangers of corruption.
Furthermore, the ACC has the function of investigation, which is to receive and
investigate complaints of alleged or suspected corrupt practices made against
any person, and refer appropriate cases to the Office of the Director of Public
Prosecutions (DPP).  Meanwhile, in July this year, it was reported that Status
Capital had suspended payments of monthly interest to its members.The members
were informed about the latest developments during a meeting that was held at
Bethel Court in Ezulwini. At the time, it was said that there were over 121
investment account holders, who were receiving monthly interest from Status
Capital. Following the meeting, the members relayed their unhappiness.
Suspension
Our sister publication, the Times of Eswatini, reported that the members claimed
that they were told that the organisation’s coffers were dry and had to at
least wait for three months and take it from there. The members noted that
following the suspension of the payment of the interest earned, they no longer
trusted anything and were doubtful they would ever get back their invested
monies. Interestingly, they stated that some of them had invested in Ecsponent
and such news was a double tragedy to them. Asked how much they had invested in
Status Capital, the members said it was E50 000 and upwards, depending on how
much a person received as an exit package from their various areas of
employment.
They stated that they were warned by officers at Status Capital not to tell or
give the information to anyone, but due to their disappointment, they could not
keep quiet. According to the members, most of them are pensioners and need the
money to survive. The management also made it known that Status Capital had
faced challenges due to the alleged misappropriation of the around E100 million
of investor funds by some co-directors. The management said the alleged
diversion of funds had led to substantial delays in the disbursement of monthly
interest payments to investment account holders, provoking significant distress
among the members. Despite the turbulence, the management said the organisation
was committed to navigating through with the utmost determination to recoup the
members’ investments.
Critical
This, the management said, had led to ongoing legal proceedings, which impacted
critical resources essential for the continuation and survival of the
institution, placing the livelihoods of their investors in jeopardy. As a result
of attempts to recover these funds, the management stated that they were
currently experiencing a period of substantial delays in disbursing the monthly
and matured interest payments to their account holders. Also, the management
said they fully recognised and profoundly understood the hardships the situation
had caused to their investors and were earnestly asking for continued patience
and support as they navigate through the complex period.
However, in September, it was reported that Status Capital had made partial
payments to all members with matured investments up to June 2024. The payments
amounted to 6.2 per cent of each member’s investment capital. This was
according to a letter that was issued by the members on August 28, 2024. The
management started by acknowledging and further apologising to members for the
inconvenience the delays in the processing of their matured payments may have
caused and reassured them of their commitment to ensuring a resolution that
aligns with their mutual interests.
Authorisation
It should be noted that the company once moved an application in court after
learning that over E82 million invested through Status Capital Building Society
had been purportedly diverted out of the country, without authorisation, by
another local company. In terms of its operation, Status Capital invites members
of the public to invest their hard-earned earnings and retirement savings in
exchange for earning relatively high-interest rates on their investments. The
society offers high rates of return on safe and secure investments at minimum
risk. It generates its income from lending the invested funds to other members
of the public at more favourable interest rates. Its profit is the difference
between the investment and lending interest rates.