Joint Statement By The Central Bank Of Eswatini And Financial Services Regulatory Authority

Together
 with
 the
 Financial
 Services
 Regulatory
 Authority
 (FSRA),
 the
 Central
 Bank
 carried
 out
 an relating 
to
 the
 Swaziland
 Women
 Economic Empowerment
 Trust
(SWEET)
and
 SWEET
 Micro
Finance
(SMF).


Together
 with
 the
 Financial
 Services
 Regulatory
 Authority
 (FSRA),
 the
 Central
 Bank
 carried
 out
 an
 investigation 
into 
the
 circumstances
leading
 to
 the 
closure
 of 
the
 two 
entities.
 Reports
 were
 compiled
 and
 presented
 to
 the 
appropriate 
authorities
 for 
consideration
 and
attention. 
At 
present, 
the
re ports 
are
 still 
being
 reviewed
 by 
the
 appropriate 
authorities
 and
 therefore, 
remains 
confidential.

However,
 and
 in
 order
 to
 dispel
 certain
 incorrect
 conclusions,
 the
 Bank
 wishes
 to
 advise
 the
 general
 public
on
the
following:

1.
SWEET
 and 
SMF
 were 
corporate 
entities,
 with
 a 
governing
 structure
 and 
management.
 The
 governing
 structure
 does
 not
 include
 the
 Queen
 Mother
 and
 her
 association
 with
 these
 entities,
 was
 purely
 ceremonial.


2.
 Whilst
 the
 idea
 behind
 the
 establishment
 of
 these
 two
 entities
 was
 noble
 and
 well‐intended,
 regrettably, 
there
 were 
serious
administrative
 failures 
in 
the 
operations.
 By
 and
 large,
 the 
failures 
were
 attributable
 to
 weaknesses 
in
 governance 
structures,
 lack
 of
controls
 and
 other short
 comings.


3.
To
 compare
 the
 operations 
of
 the 
two
 entities 
to
 a
ponzi
 scheme,
 would
 be incredulous
 and
 singularly
 improper.

4.
The
reports
make
various
recommendations,
which
include
holding
those
responsible
for
the
demise
of
 the
 schemes
 accountable
 through
 appropriate
 avenues.
 This
 includes,
 determining
 whether
 the
 two
 entities
 should
 be
 placed 
under
 curatorship
 (with 
a view
 of
resuscitating
 them)
 or 
liquidation.

5.
All
 stakeholders
 that 
invested 
in
 SWEET
 should
 remain 
at 
ease
 and 
allow 
the
 regulators 
to 
complete
 their 
work.
The 
priority 
is 
mainly 
to
 ensure 
that 
investors
 are
 protected.

At
 the
 stage 
and
 whilst 
engagements
 are 
being
 undertaken, 
the 
media
 is
 requested 
to 
respect
 these
 processes, 
and
 refrain 
from
 making
any
 inflammatory 
and 
defamatory 
statements 
concerning
 the
 two
 entities 
and 
the
 role 
players. 
In 
the 
interest 
of 
transparency
 and
 in
order 
to
 allay
 the 
fears 
of 
those 
that
 invested
 in
 the
 two 
entities, 
the 
Bank 
undertakes 
to 
make 
known
 its 
intended
 course 
of 
action 
once
the
 consultations 
have
 been
 concluded.