ESWATINIBANK WANTS BENEfITS OF EX-WORKER STOPPED
MBABANE – EswatiniBank has approached the High Court for an order to stop Eswatini Revenue Service (ERS) from paying out terminal benefits of a former employee.
The former employee, Celiwe Dlamini, according to Eswatini Development and Savings Bank (EswatiniBank), had an outstanding loan with the bank when she left ERS.
In its application in court, the bank wants to be granted an order interdicting ERS from paying out any terminal benefits due to Dlamini pending determination of another ongoing matter in court.
In the other matter, EswatiniBank is seeking the recovery of the amount loaned and advanced to Dlamini.According to EswatiniBank, it wants Dlamini to repay an amount of E194 212.08.
EswatiniBank’s Executive Manager Business Banking, Druce Sargo, informed the court that in December 2010, in Mbabane, ERS entered into a personal loan scheme with the bank in terms of which employees of the former would be eligible for personal loans with EswatiniBank. When the agreement was concluded, EswatiniBank was represented by its general manager finance while the commissioner general represented ERS. The loans were to be granted to employees of ERS who were engaged on permanent, contract and pensionable terms. The employees would be recommended by ERS but the recommendation would not automatically grant an employee a loan. In the event an employee left ERS, they would cease to be a beneficiary of the scheme. Such employee, according to the terms, should clear the loan account or make private arrangements with the bank for continuation.
Sargo submitted that after the conclusion of the loan scheme agreement, Dlamini, who was an employee of ERS at the time, in October 2018, was allegedly granted a loan in the amount of E179 655.32. It was to be repaid in 48 months from November 2018 to October 31, 2022.
Sargo said the following receipt of the money, Dlamini’s employment relationship with ERS ceased.
“This then meant that the first respondent (Dlamini) could not continue the benefit and a loan scheme agreement between the applicant and the second respondent (ERS) and the amounts outstanding for the personal loan immediately became due,” said Sargo.
He also informed the court that on November 14, 2021, the bank wrote to Dlamini and advised that the loan account had a balance of E183 603.34.
Advised
The bank allegedly further advised that the matter could still be amicably resolved and that Dlamini should approach the Credit Department to make arrangements to settle the debt.
“Not withstanding such invitation, the first respondent did not approach the applicant’s Credit Department and on November 23, 2021, the applicant formerly made demand to the first respondent to settle the arrears which at the time were the sum of E38 528.69 within seven days, failing which legal action would be taken,” submitted Sargo. Dlamini is said to have approached the bank after the formal demand had been made, to negotiate the payment and/or settlement of the loan amount. “It is during these negotiations that the first respondent mentioned that she was no-longer employed and also had no stable monthly income,” added Sargo.
He told the court that Dlamini acknowledged to be indebted to the bank in the amount of E183 603.34. To date, according to the bank, the amount outstanding is E194 212.08. The bank was represented by Emmanuel Shabangu of Robinson Bertram. The matter is pending.