South African businessman Dave van Niekerk says he has fulfilled the pledge he made to His Majesty King Mswati III to help recover millions of emalangeni invested by Emaswati in Ecsponent and Status Capital.
The presence of the controversial businessman, known for his role in fintech ventures, at Ludzidzini Royal Residence late last year drew public attention as he was allegedly facing two red notices and an attachment of E5 million obtained by ESW Investment Group at the time.
Van Niekerk has now revealed that it was during this meeting that he pledged to the monarch to help resolve the matter of the missing funds in any way possible, a commitment he maintains he has honoured.
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“I have followed through on that commitment,” Van Niekerk said. “After my resignation as a non-executive director, I undertook to assist both members and management to ensure that the investments made during my tenure were properly managed out. I was involved as an intermediary and all but one of the investments have been repaid,” he added.
Van Niekerk claims he acted as an intermediary in the recovery of more than E35 million in the Status Capital Building Society (SCBS) case, as curator Bimal de Silva informed investors that a further E95 million was expected, with an additional E2.7 million currently being pursued.
De Silva, appointed by the Financial Services Regulatory Authority in December 2024 to manage SCBS’s recovery process, shared with investors last week that the society currently holds E33.7 million in various accounts.
This includes E23.5 million invested locally at 9.78% interest, E10 million in treasury bills earning 9.02% and E183 000 in a commercial bank at two per cent for operational expenses.
According to him, if SCBS were liquidated now, after paying E2.9 million in fees, E5.1 million to creditors and E1.5 million in employee costs, investors could expect to recover around 16% of their original investments, a scenario that members at the meeting unanimously agreed to avoid.
Funds recovered to date have been allocated as follows: E600 000 to creditors, E1.2 million to employees, E550 000 to operational expenses and E346 000 for issued loans. Investments have earned E1.5 million in interest, offsetting employee costs.
Quizzed on why one investment remains outstanding, Van Niekerk said he was not in possession of information on that regard as it falls under the responsibility of the court-appointed curator.
“As you know, a curator has been appointed and, as such, I do not have sufficient information to provide you with answers to your questions,” he said.
Responding to questions about his role in the broader recovery process, Van Niekerk stated that he had no prior involvement or association with Status Asset Management.
He said at the request of certain parties, he had attempted to facilitate a repayment arrangement between Status Asset Management and SCBS, but the proposal was rejected by the society’s management.
Instead, management, he claims, opted to initiate legal proceedings, which he said incurred significant costs and ‘disproportionately escalated’ the matter.
In his view, this had diverted attention from what he described as more substantive issues affecting the society, including mismanagement of members’ funds through excessive loans, inflated salaries, payments to related-party legal firms and unnecessary rental and administrative costs, which he claimed had eroded SCBS’s financial position.
He also rejected allegations contained in court filings of substantial overlaps in directorships and executive control between Ecsponent, SCBS and Status Asset Management.
“I was never a director of ESW or Status Asset Management. I served solely as a non-executive director of Status Asset Building Society and held no executive control over any of these entities. The suggestions made in the court filing are false and without basis,” he said.
Van Niekerk was also asked whether Ecsponent Eswatini Limited investors, many of whom have yet to see their funds returned, could expect recoveries.
He repeated that he had no association with Status Asset Management, and that his involvement had been limited to attempting a repayment arrangement.
He confirmed having met senior government officials, including the Minister of Finance Neal Rijkenberg and the Central Bank Governor Dr Phil Mnisi, stating that the agenda of the meetings was to assist with matters relating to SCBS.
“I provided the relevant authorities with the information I gathered and recommended that ESW be placed under curatorship,” he stated.
On allegations that he controls the Swaziland Debt Factoring Firm (SDFF), against which SCBS has initiated court proceedings over a debentures agreement reportedly in arrears of more than E82 million, Van Niekerk said he ‘does not control SDFF’.
“I do not control SDFF. I am, however, aware that court proceedings initiated by the building society against SDFF are currently pending,” he explained.
Asked how he views his legacy in relation to SCBS, Ecsponent and other related schemes, Van Niekerk said he would want it to be one of assisting the authorities in determining where investors’ funds were directed and in supporting efforts to recover those funds.
“I have and will continue to assist the relevant authorities wherever possible,” he emphasised.
The SCBS case remains far from resolved. While the E35 million recovery is substantial, the anticipated E95 million in further recoveries is largely linked to debentures and subject to legal and commercial processes.
Multiple court actions, including those involving SDFF, are ongoing and during the meeting last week, investors agreed to back de Silva’s continued work, and his mandate has been extended until 18 August 2025.
They have also asked the FSRA to consider a further extension until most of the outstanding amounts are retrieved.
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