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

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.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: