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

October 11, 2021

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 reports 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.