MBABANE – Talk about a gambit!
By definition, the above word means a bold, strategic move that involves risk, made in the hope of gaining an advantage.
It rhymes perfectly with the latest development in the controversial case of the millions lost by emaSwati who invested in Status Capital Building Society (SCBS). While the FSRA awaits the final court order to liquidate the entity, some of its shareholders have proposed a plan to revive the entity and turn it into a banking institution.
A confidential document seen by this publication reflects that the shareholders, who have the backing of South Africa businessman Dave van Niekerk, have proposed the injection of what has been termed substantial additional capital into the SCBS, contingent upon obtaining a banking licence from the Central Bank of Eswatini (CBE). The document, dated January 8, 2026, is directed to the Minister for Finance, Neal Rijkenberg, and was shared with some of the members on their WhatsApp group.
The proposed structure, as detailed in the document, would operate in such a way that the CBE, working in coordination with the FSRA, would oversee the distribution of currently held funds to members. “Any shortfall between these distributed funds and members’ original investments would be identified and quantified,” reads part of the document.
The businessman, this publication has gathered, has committed that if the proposal falls through, he will capitalise the shortfall through the issuance of preference shares to affected members, with repayment terms structured over a two to three-year period.
This, it is highlighted, would ensure that members receive compensation for their losses while maintaining a secured position in the restructured entity. “I would further capitalise the institution to meet Central Bank regulatory requirements for a full banking licence, transforming SCBS into a licensed banking institution within Eswatini. The bank would be strategically positioned as an agricultural and foreign exchange specialist bank, with a mandate to attract international investment and facilitate private sector growth within three key economic factors,” the businessman highlighted.
Furthermore, the businessman committed that he will hold primary ownership of the restructured bank, with an ownership structure designed to support long-term sustainability and professional management aligned with regulatory expectations. Also highlighted in the document is what the proposal aims to achieve. It is mentioned that members will receive the maximum possible recovery of their investment, with preference-structured compensation for any remaining loss.
Another objective cited in the document is that rather than liquidating assets at distressed valuations, the society’s operational capacity will be preserved and revitalised. There is also an objective of ensuring financial sector development. It says: “The Kingdom of Eswatini will benefit from the creation of a specialised banking institution focused on agriculture and foreign exchange – sectors critical to Eswatini’s economic development and international trade positioning.”
Also, it is highlighted that the proposal will make a positive impact by establishing a bank specifically designed to facilitate agricultural and foreign exchange activities. the proposal is also said to support private sector expansion and diversification. “This represents my personal commitment to rebuilding my professional reputation within Eswatini while simultaneously making a tangible contribution to the nation’s economic development and growth objectives,” the businessman said.
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Allow liquidation, then explore fresh plan – Neal
MBABANE – Minister for Finance Neal Rijkenberg has advised shareholders and investors of SCBS to allow the proposed liquidation to take place, after which, they can explore other investment initiatives.
The minister first mentioned that what the FSRA has done is the right thing following that SCBS stopped paying monies that were due to members.
He said the FSRA stepped in, put in a curator who played his part, to be able to try and recover funds and stabilise the entity.
“The FSRA has now put in a liquidator to try and liquidate this asset because it is clearly in default. It is the right thing to do as it is according to legislation. They have followed the right rules,” Rijkenberg said.
He said the positives that have come out from engagements is that there seems to have been good discussions with Van Niekerk, leading to a recovery of part of the base investments that were made.
The challenge, the minister said, is that SCBS has still been open but not necessarily taking or paying investments.
“The running cost of that has now meant that the entity is not profitable, and members, if they get out what they have invested, in my opinion, they’ll be lucky. The investors are probably going to be getting a certain amount of cents but at least there is a decent chunk of cash, it looks like, so that one can do a distribution.”
Regarding a way forward, Rijkenberg said his advice to the investors would be to say that they must follow through the liquidation so that it can be wound up. This, he said, would make it possible for whosoever put in their money to receive something.
Explaining further, the minister said the unfairness of not going to liquidation means that there are probably people who have invested that do not necessarily want to continue doing something.
“There may be people who do not want to take the new risk. They would rather get out with whatever they can and then plan what they wany to do with their money. There may be some who want to go ahead as a group and have their money invested somewhere. That group, obviously, if they want to make an offer at that stage, is to take the shell company out of liquidation, put their money back in, and continue that, they can do that.”
He said if such investors want to start a new entity and apply for a banking licence, he will, in his capacity as a minister, try and give them as much support as possible, so that they could really have as much freedom and speed to be able to do what they would like to do, and be able to get a new lease on life.
The minister said all that would be expected is ensuring that it is a financial company that is well run as an asset.
“It needs to be well run. People need to be able to get their monies, and we will now be more careful. As the regulator, I am hoping to make sure where the monies are being invested, that the investments that are being made are credible (3:29) and are really going to give good returns to emaSwati.”
*Full article available on Pressreader*
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