Eswatini's Bunye Betfu Buhle Betfu Savings and Credit Co-operative, a scheme for civil servants, is facing financial and administrative problems. An audit report revealed that E19.6 million could not be properly accounted for. The current Board has been removed pending an intensive investigation. The co-operative, one of the oldest in the country, has over 5,000 members.
The financial irregularities and maladministration were uncovered during the tenure of the removed Board by audits from Kobla Quashie Chartered Accountants and PricewaterhouseCoopers. The findings were relayed to members at a short-notice annual general meeting (AGM) convened by the Financial Services Regulatory Authority (FSRA) and the commissioner for Co-operatives in the Ministry of Commerce, Trade and Industry.
The AGM, held at Zakhele Free Evangelical Assemblies Auditorium, drew more than 5,000 members. Many began arriving at 7am, the time set for registration, which was expected to take two hours before the meeting started at 9am. However, by 9am, the queues had not cleared, and organisers directed that registration continue while proceedings got under way.
Acting Commissioner for Co-operatives Bongani Maziya addressed the gathering, apologizing for the short notice. He acknowledged the frustration members displayed last week after information about the co-operative’s affairs surfaced. Maziya revealed that the co-operative was not new to controversy, with its governing body remaining in office beyond its term.
Maziya explained that a Board's role is to provide oversight and set strategy, not interfere in daily operations. However, at Bunye, that line had been crossed. He listed five key Board duties that were not fulfilled, including protecting the co-operative's assets and ensuring a manager was in place. The removed Board compromised the membership's trust through operational inefficiencies.
The problems included meetings that failed to form a quorum, hindering the running of the co-operative. Maziya said gaps in government laws and regulations had also forced the commissioner to intervene. He urged members not to panic, saying curatorship should not be confused with liquidation. The co-operative will remain under curatorship for three months, with regular reports provided to members.
Mbongiseni Nkambule of the FSRA explained that the co-operative's curatorship was temporary and had three purposes, including restoring normal operations and protecting members' property and assets. The regulator noted that the co-operative had ignored directives from the commissioner for co-operatives, including instructions to produce financial reports and hold elections.
Key points
- The E19.6 million unaccounted for was revealed through audits by Kobla Quashie Chartered Accountants and PricewaterhouseCoopers.
- The co-operative will remain under curatorship for three months.
- The current Board was removed due to financial irregularities and maladministration.
