STATUS Capital investors have received a fresh indication that some of their money could be recovered.
Speaking on the sidelines of the opening of the ESAAMLG In-Country Financial Action Task Force (FATF) Standards Training Programme at the CBE headquarters in Ezulwini, Central Bank of Eswatini (CBE) Governor Dr Phil Mnisi said regulatory institutions were continuing efforts to resolve the Status Capital and Ecsponent matter.
“It gives us great pleasure to mention that the matter pertaining to Status Capital and Ecsponent, as previously reported, continues to be worked on by the Financial Services Regulatory Authority (FSRA), in collaboration with the Central Bank of Eswatini and also the ministry of finance,” Mnisi said.
He specifically pointed out that some of the money invested with Status Capital could potentially be returned.
“It seems as if some of the monies will be returned,” he said plainly.
The governor did not specify how much could be recovered and when investors might receive payments, or whether all affected investors would be compensated. He pointed to the high possibility of a recovery rather than a confirmed repayment programme.
The Status Capital matter has been the subject of regulatory and legal proceedings after concerns emerged over the operations of Status Capital Building Society, which was licensed in 2019 under the Building Societies Act.
The institution, which had offices in the kingdom, accepted funds from members of the public through investment products offering fixed returns.
According to an FSRA affidavit presented in court proceedings, investigators raised concerns about the way the institution operated and alleged that investor funds were transferred to related entities.
The regulator subsequently sought the winding-up of the institution, citing the need to protect investors and facilitate the recovery and distribution of assets.
FSRA has since reported progress in tracing and recovering funds. In July, the regulator confirmed the recovery of E111.5 million in public investment funds linked to Status Capital.
The amount recovered does not, however, indicate how much individual investors will ultimately receive.
The matter also involved Ecsponent, a South African-linked investment business whose activities featured in the broader controversy surrounding investments connected to Status Capital.
Questions over the movement and recovery of funds formed part of the wider dispute, while individuals associated with the businesses have disputed aspects of the allegations.
Mnisi used the case to stress the importance of stronger safeguards and greater vigilance among investors. He urged Emaswati to establish whether their money was being placed with regulated entities, understand investment terms and conditions, and exercise caution when confronted with schemes promising unusually high returns over short periods.
He said the CBE and FSRA had heightened their vigilance against institutions that developed financial problems at an early stage.
In addition, Mnisi said the CBE had also introduced deposit insurance aimed at protecting retail bank depositors in the event of a bank failure.
CBE Tower 4th Floor by year end
THE new CBE headquarters tower is expected to reach the fourth floor by year-end, as construction of the landmark multi-storey project progresses well.
CBE Governor Dr Phil Mnisi said the tower, which will have 18 floors, remains on schedule for completion by September 3, 2028.
The project, one of the country’s major infrastructure developments, is being delivered under a fixed budget, fixed quality standards and a fixed timeframe.
Mnisi said construction was planned to take 34 months from the start of works.
He expressed confidence that the project would be completed within the agreed timeline, with a possibility of finishing earlier than scheduled.
Mnisi said projects of this magnitude should demonstrate strong planning, timely delivery and accountability in the use of funds.
“There shouldn’t be cost overruns. We hope that all projects in the country can follow such a policy,” he said.
