Govt suspends ESWAMCU Board
MBABANE - The entire Board and Supervisory Committee of the Eswatini Multi-Purpose Cooperative Union (ESWAMCU) have been suspended, pending a forensic audit.
The audit will be conducted by SNG Grant Thornton Pty Ltd, an independent audit firm. In the meantime, ESWAMCU is run by an interim Board. ESWAMCU is an apex body representing all farming and multi-purpose cooperatives in Eswatini to improve their access to inputs, equipment, markets and technical information. The organisation was officially formed and registered on September 8, 2006.
In a press conference yesterday, the Minister of Commerce, Industry and Trade, Manqoba Khumalo, said he was fully supportive of the decision taken by the Office of the Commissioner for Cooperative Development. “May I urge the public and members of the cooperative movement to be patient while we wait for the report by the independent auditor, which will be shared with ESWAMCU affiliates,” said Khumalo.
He pleaded with the interim committee to manage ESWAMCU professionally during their short tenure in office. He reminded the interim Board to work hard to see the dream of the cooperatives to have their own bank since they were now valued at over E1 billion.
The National Association of German Cooperative Banks (BVR) is reportedly assisting the local cooperatives to establish their own bank in Eswatini.
The suspension of ESWAMCU Board comes after allegations of maladministration, which were levelled against them. Last year, some of the cooperatives who are affiliates of the union wrote letters to the minister seeking his office’s intervention in the serious alleged maladministration in the Office of ESWAMCU.
Letters
The cooperatives that approached the minister through the letters are Siphamandla Multipurpose Co-operative society, Eswatini Fruits and Vegetables Multipurpose Cooperative and Zinyane Multipurpose Co-operative.
The cooperatives alleged that despite the existence of the Co-operative Act and support structures, the operations were being conducted in violation of the Act and in an unprofessional manner. One of the allegations raised in the letters was that one of the executive Board members of ESWAMCU reportedly helped himself to an amount of E72 000. They alleged that disciplinary actions had not been instituted against this member.
The letters all dated December 13, 2023, were delivered to the then Acting Commissioner of Cooperatives in the Ministry of Commerce, Industry and Trade Bongani Maziya, for the attention of the minister. Maziya confirmed having received the letters and stated that they were working on the issues tabled by the cooperatives and would definitely take appropriate actions after investigations have been conducted.
Concerns
Maziya said the concerns raised by the cooperatives came just when his office had also identified some irregularities within the union. He said there were already disciplinary measures in place, however, he could not divulge much on them, as the matter was still under vigorous discussions.
In an interview early January, Mfomfo Nkhambule of Siphamandla Multipurpose Co-operative society said they were very disappointed by the conduct of the union, which was supposed to help emaSwati, but it was not the case. Nkhambule said there was an audit conducted against the union worth millions and indeed it was found that there was a lot of wrong in the union.
He alleged that the union was a milk cow, where everyone was helping themselves at the expense of the poor emaSwati. In their letter, Nkhambule’s co-op
“Work hard to realise the cooperatives dream of having its own bank since they were now valued at over E1bn.”
erative, appealed to the minister to look at dissolution of the Board of ESWAMCU and putting an interim Board until the union’s alleged irregularities matter was dealt with, once and for all.