BY MBONO MDLULI
MBABANE – The Financial Services Regulatory Authority (FSRA) and the Commissioner of Cooperatives have directed that bank accounts held by Asidle Sonkhe Savings and Credit Cooperative Society Limited be frozen.
This decision has been made to protect the funds belonging to members of the allegedly insolvent cooperative society. It follows complaints submitted to the office of the Commissioner of Cooperatives, Russell Nxumalo, and the FSRA regarding Asidle Sonkhe’s failure to meet its financial obligations to its members.
In a joint directive issued by Nxumalo and FSRA Chief Executive Officer (CEO) Ncamiso Ntshalintshali, both parties announced that they are in the process of initiating liquidation proceedings against Asidle Sonkhe. This action is being taken in accordance with Section 100 of the Cooperative Societies Act of 2003. The grounds for liquidation, as outlined in the directive, include but are not limited to:
- Asidle Sonkhe is insolvent, with its liabilities exceeding its assets by approximately E4.2 million.
- Asidle Sonkhe does not hold a valid license from the FSRA.
The Commissioner and FSRA have received numerous complaints against Asidle Sonkhe regarding its failure to meet its obligations to members, which is indicative of insolvency.
Furthermore, the Commissioner and FSRA conducted an onsite inspection at Asidle Sonkhe’s business premises in November last year to assess its operations. As part of the inspection, Asidle Sonkhe was required to provide the inspection team with monthly operating statements and balance sheets from 2023 to 2024, according to the directive.
Additionally, Asidle Sonkhe was requested to provide a detailed analysis of its bank withdrawals for the period from 2023 to 2024. However, the cooperative failed to provide all the requested documents, as stated in the directive.
To protect members’ interests while the liquidation process is yet to commence, the Commissioner and FSRA have directed Asidle Sonkhe to cease withdrawing any funds from its accounts held at Nedbank and the Swaziland Building Society. This directive is in accordance with Regulation 72 of the Cooperative Societies Regulations of 2005 and Section 65(1)(c) of the Financial Services Regulatory Authority Act of 2010.