BY MBONGENI NDLELA
MBABANE– The Financial Services Regulatory Authority (FSRA) has announced significant progress in the liquidation of the Status Capital Building Society (SCBS), revealing that more than E111.50 million has already been recovered as part of ongoing efforts to protect depositors, creditors and the integrity of Eswatini’s financial sector.
In a public update released today, the regulator outlined the progress made since SCBS was placed under curatorship before the matter proceeded to liquidation, assuring stakeholders that every recovered asset is being safeguarded while the legal process continues.
The update provides one of the most comprehensive accounts yet of the work undertaken by the FSRA and the appointed curator to recover funds, investigate the affairs of the institution and maximise returns for those affected by the collapse of the building society.
The Authority said its intervention followed extensive inspections and a detailed risk assessment, which concluded that SCBS could no longer continue operating in a safe and sustainable manner.
Acting under the Financial Services Regulatory Authority Act of 2010, the FSRA appointed Mr Bimal de Silva as Curator to assume control of the institution’s affairs and implement corrective measures aimed at protecting depositors, creditors and the broader financial system.
According to the Authority, the curatorship uncovered several matters requiring further regulatory and legal attention, while also producing encouraging financial recoveries.
One of the major achievements was the recovery of E35 million from Status Asset Management Proprietary Limited (SAM), an entity that had received funds from SCBS under a debenture agreement.
The Curator also negotiated a settlement agreement with Swaziland Debt Factoring Firm (Pty) Ltd (SDFF), resulting in the recovery of E76.5 million over the past seven months from a total debt of E84 million owed to SCBS.
The remaining E7.5 million is expected to be settled by the end of July 2026 in accordance with a court-approved settlement agreement.
The FSRA said that, to date, a combined total of E111.50 million has already been recovered from both SAM and SDFF.
It added that it continues to closely monitor compliance with the settlement agreements to ensure the outstanding balance is paid within the agreed timeframe.
The Authority further confirmed that the liquidation application was heard by the courts on 24 December 2025, resulting in the granting of a provisional liquidation order.
The court appointed Tygerberg Trustees (Pty) Limited as the Provisional Liquidator of SCBS, with the matter still awaiting final judicial determination.
To reassure stakeholders, the FSRA said all recovered assets have been placed with the Central Bank of Eswatini and reputable asset management firms to ensure their preservation.
These assets, it explained, will form part of the estate available for distribution to creditors once the applicable legal and insolvency processes have been completed.
The regulator emphasised that its role remains focused on protecting stakeholder interests throughout the liquidation process while ensuring transparency and accountability.
“The Authority continues to oversee the Provisional Liquidator’s administration of SCBS affairs and remains committed to protecting stakeholder interests and maximising recoveries,” the FSRA said.
The Authority described the recovery of more than E111 million as an encouraging milestone that demonstrates its commitment to maintaining confidence, integrity and stability within Eswatini’s non-bank financial services sector.
The FSRA has urged depositors, creditors and members of the public to rely only on its official communication platforms for verified information regarding the liquidation proceedings, warning against misinformation as the court process continues.
While the final outcome of the liquidation remains before the courts, the latest update signals steady progress towards recovering assets and ensuring that the interests of those affected remain protected throughout the legal process.
(Courtesy Pic)
Post Views: 168
