In 2019, the Central Bank of Eswatini (the Bank) undertook a review of the mortgage loan processes. This included mortgage-based funding processes, investigation of allegations of irregular practices by key stakeholders in mortgage lending with respect to repossession of consumer properties. The Bank extended an invitation to members of the public to submit information or evidence concerning any misconduct/malpractice in the mortgages lending by any bank or building society (including their authorized agents). The Bank engaged the services of external consultants, SNG Grant Thornton South Africa to conduct this review/investigation.

The Bank is cognizant of the fact that the finalization of the review/investigation process has taken longer than anticipated. The Bank understands fully the implications and negative effects this has, especially on those customers who submitted complaints. Based on this, the Bank expresses its appreciation for the understanding and patience exhibited by concerned parties during the course of this exercise.

The causes of the delays have, in the main, been due to the following:

1. The need to engage all relevant parties to gather the necessary data for the review / investigation;
2. Extensive consultations with all concerned parties;
3. The closure of borders due to Covid-19 cross border travel restrictions as the consultants are based in the Republic of South Africa.

Not with standing the above, the Bank would like to update stakeholders that the review process of the submitted complaints is now almost complete. The finalization of the reports is being done in a staggered manner and the reports for complaints relating to some of the institutions concerned have been received from the SNG Grant Thornton.

As a result, the Bank will soon be contacting all those who made submissions to provide them with outcomes of the review/investigation, based on Consultants’ findings. The public is further advised that, due to the reports coming through in a staggered manner, the Bank will be following the same method to contact those complainants/customers whose matters have been finalized.

Majozi V. Sithole

GOVERNOR

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