BUNYE Betfu Savings and Credit Cooperative members have expressed disappointment over the 10% dividend approved for this year, saying the payout falls short of their expectations and has affected plans they had made from years of saving.
The members said they had expected a 25% dividend, which they claimed had been promised by the cooperative’s leadership. They said this was significantly higher than the 14% received last year and 12% in 2024.
Despite the earlier expectation of a 25% payout, members said they eventually accepted the 10% dividend amid concerns that they could end up receiving nothing because of the cooperative’s ongoing financial and governance challenges.
Member Mahle Nxumalo said with the dividend she would fulfil only part of the plans she had made after years of saving with Bunye Betfu.
“I had saved E25 000 since 2016, and I save E200 per month. When I got my salary backpay in October last year, I increased my monthly savings to E400,” she said.
Nxumalo said she had planned to use the dividend to renovate her home and install new fencing, among other things. However, she said the 10% payout meant she could only implement part of her plans.
Some members also questioned the value of the dividend in relation to their share contributions and annual fees. They said a 5% share contribution of E2 000 would translate to only E100, which they felt was inadequate given their expectations from belonging to a savings and credit cooperative.
Members further complained about the cost of borrowing, particularly on long-term loans, saying the interest rates were too close to those charged by commercial banks.
One member said she had taken a loan of E105 000 and was informed that the interest would amount to about E71 000.
Another member said despite making loan repayments for two years, her outstanding balance appeared to have changed very little.
“Being a member of the cooperative is no longer working for us as members. The interest charged for loans is almost the same as banks yet the benefit of being a SACCO member was the low interest rate,” one member said.
Despite her disappointment, Nxumalo said she would not resign from Bunye Betfu and would continue fighting for the cooperative to regain its former position.
Nxumalo said members were also concerned about the findings that could emerge from the ongoing regulatory intervention.
“I pray that there are no irregularities found by the regulator after the three months,” she said.
Her concerns come against the backdrop of financial and governance issues that prompted the Financial Services Regulatory Authority (FSRA) and commissioner for cooperatives to place Bunye Betfu under curatorship.
Auditors recently revealed a E19.6 million suspense account in the cooperative’s financial statements, saying they had not yet established where the entire balance originated.
They said one possible explanation being investigated was that the balance arose during the migration from the cooperative’s old computer system to a new system.
The audit also referred to fraud, although auditors said its financial impact had not been quantified in the financial statements.
The revelations have heightened members’ concerns about the cooperative’s financial affairs, with some calling for those responsible for any wrongdoing to face the law.
Members said they hoped that, if investigations established that funds had been misappropriated, those responsible would be arrested.
FSRA representative Mbongiseni Nkambule told members that matters found to constitute criminal offences would be referred to the relevant authorities.
“Anything that is a crime, we pass it to criminal authorities,” Nkambule said.
The regulatory intervention also resulted in the removal of the entire Bunye Betfu board amid concerns over governance and internal controls. Authorities said the board had failed to hold meetings and, at times, could not form a quorum.
Members said the removal of the board had created another challenge as they were left with unanswered questions and did not know who to approach.
“We’re disappointed. We’re not happy. We still have a lot of unanswered questions,” one member said.
The members’ concerns come despite financial figures showing that the cooperative recorded a E6.1 million profit for 2026, while members’ savings stood at E206 million.
Investments increased by 24%, the cooperative’s money increased by 70% and receivables rose by 11%, from about E21 million to E24.2 million.
However, members said the figures had done little to ease their concerns about the returns they were receiving or the cost of borrowing.
The FSRA approved the 10% dividend but indicated that the position could be reviewed after the regulatory intervention and further assessment of the cooperative’s reports.
The curatorship is expected to last three months, after which members are expected to elect a new board.
Authorities have stressed that Bunye Betfu is not being liquidated or closed, saying the intervention is intended to protect members’ money and assets, strengthen internal controls and restore sound governance.
For members, however, the immediate concern is whether the cooperative can regain the confidence it once enjoyed.
It’s a reconciliation issue – former Bunye Betfu board chair
FORMER Bunye Betfu Buhle Betfu Savings and Credit Cooperative Board Chairperson Fortunate Lukhele has attributed the cooperative’s contentious E19.6 million suspense account to a reconciliation issue arising from the migration of its computer system.
Lukhele’s explanation comes after auditors revealed during Saturday’s special meeting that the cooperative had a E19.6 million suspense account, describing it as a temporary account where amounts whose classification is unclear are placed.
During the meeting, auditors told members, Financial Services Regulatory Authority (FSRA) officials, the commissioner for cooperatives and curators that they had not found sufficient evidence to establish the origin of the entire balance.
One of the possible explanations being investigated, according to the auditors, was that the balance could have arisen during the migration from the cooperative’s old computer system to a new system.
This was emphasised by Lukhele, who said the E19.6 million issue was linked to data that remained on the old system after the migration.
She said the cooperative had migrated from its old computer system to MAMBU, a cloud-based core banking system designed to digitise cooperative operations, but some data had remained on the old system.
“The E19.6 million issue has to do with reconciliation of the books,” Lukhele emphasised.
She explained that the cooperative had subsequently approached the courts seeking an order compelling the Eswatini Association of Savings and Credit Cooperatives (ESASCCO), the apex body for SACCOs in the country, to provide the data required to reconcile the accounts.
According to Lukhele, the matter had already been argued before the court and the cooperative was now awaiting judgment.
She said the judgment would help determine how the matter should be resolved.
The cooperative’s E19.6 million suspense account has emerged as one of the major financial concerns among members, particularly because auditors said they were still investigating its origin.
The audit presentation also contained a reference to fraud, prompting members to question what action would be taken if criminal activity was established.
Lukhele said that, as a member of the cooperative, she was also awaiting the court’s judgment to determine the way forward.
She declined to comment on other matters concerning the cooperative, saying it was now under curatorship.
“I cannot comment on any other matter because the cooperative is now under curatorship,” she said.
