Members of Bunye Betfu Savings and Credit Cooperative in Eswatini have expressed disappointment over the 10% dividend approved for this year. They had expected a 25% dividend, which they claimed had been promised by the cooperative's leadership. The 10% payout is significantly lower than the 14% received last year and 12% in 2024. Despite the earlier expectation of a 25% payout, members eventually accepted the 10% dividend amid concerns that they could end up receiving nothing due to the cooperative's ongoing financial and governance challenges.
Member Mahle Nxumalo said she had saved E25,000 since 2016 and had planned to use the dividend to renovate her home and install new fencing. However, 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. 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. Members felt that being a member of the cooperative was no longer working for them, as the interest charged for loans was almost the same as banks.
The Financial Services Regulatory Authority (FSRA) and commissioner for cooperatives had placed Bunye Betfu under curatorship due to financial and governance issues. 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. The audit also referred to fraud, although auditors said its financial impact had not been quantified in the financial statements.
FSRA representative Mbongiseni Nkambule told members that matters found to constitute criminal offences would be referred to the relevant authorities. The regulatory intervention 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.
Despite financial figures showing that the cooperative recorded a E6.1 million profit for 2026, while members' savings stood at E206 million, 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.
Former Bunye Betfu board chair Fortunate Lukhele attributed the cooperative's contentious E19.6 million suspense account to a reconciliation issue arising from the migration of its computer system. Lukhele said the E19.6 million issue was linked to data that remained on the old system after the migration. 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, but rather the intervention is intended to protect members' money and assets, strengthen internal controls, and restore sound governance.
Key points
- Members of Bunye Betfu SACCO in Eswatini express disappointment over a 10% dividend payout.
- The cooperative's financial and governance challenges led to regulatory curatorship.
- A E19.6 million suspense account was revealed, which auditors are investigating.
