CONCERNS AS BLACKLISTED MEMBER IN BUNYE BETFU BOARD

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.

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