Pretoria - Sekunjalo Group executive chairman Dr Iqbal Survé is gearing up for a series of legal actions against South Africa’s banks whom he said claim reputational risk despite being guilty of misconduct at times.
In papers filed with the Equality Court in the Western Cape, he said there was evidence of collusion between the country’s major banks, as they were all following the same patterns in severing ties with the Sekunjalo and related entities.
Dr Survé said the banks had a serious case to answer as they had violated the group’s constitutional rights. He is asking the court to declare that the banks’ conduct constitutes unfair discrimination and that their decisions to close the group and its related entities’ bank accounts should be overturned.
Apart from these declaratory orders, Dr Survé also wants each bank to pay damages for the financial losses incurred by the group of companies and its related entities as a result of unfair discrimination and harassment against it by the banks.
In a statement to the Equality Court, Dr Survé made it clear that no Sekunjalo company had ever been involved in corruption or money laundering. He said this was acknowledged by the banks, yet they keep claiming reputational risk. “The banks’s egregious conduct against the Sekunjalo Group and its related entities is a collective punishment as all the companies are affected.
“There is evidence of collusion because all the banks follow the same patterns and processes… It is a copy and paste of letters of all the banks, which are sent to all the companies.”
Dr Survé said they all cited reputational risk, the Mpati Commission or negative media reports, without trying to verify whether these reports are correct or not. The banks also treat all the companies and entities the same. “It is by association with myself and Sekunjalo, irrespective of whether the relationships are new or old, existent or not.”
He also said the banks do not have regard for the thousands of the group’s employees. “They have former politicians and business people chairing their boards... They have taken over the role of the courts and act as judges.”
Dr Survé pointed out that there were about 20 companies, including Steinhoff, Tongaat Hulett and EOH, that have been found to have engaged in accounting fraud and some in money laundering, yet their bank accounts and those of their directors remain open.
These also include the bank accounts of corrupt State-owned enterprises beneficiaries.
He said as far as could be ascertained, the only bank accounts closed are those of the Guptas – a move seemingly supported by the media.
According to him, media competitors and the banks tried to make it seem like Sekunjalo was similar to the Guptas, despite it having an adversarial relationship with the Guptas.
Dr Survé said the banks were dishonest about the relationship between them and the Public Investment Corporation (PIC). He noted that the banks have not closed the PIC accounts, despite media reports and the negative findings of the Mpati Commission.
He said the PIC has directors serving on the boards of the banks. He said the banks are dishonest about their true intentions for severing ties with his companies. One of the reasons for wanting to force the companies to its knees, he said, was that they want to force a sale of business.
He said a week after receiving the Absa termination notices, he contacted the then CEO of Absa Daniel Mminele with whom he had a good relationship. He said he was prepared to have a private discussion off the record.
Mminele said Absa would give the companies more time to make other banking arrangements, but that his hands were tied.
Dr Survé said he learned from impeccable sources that the decision to terminate the bank accounts was taken by the risks department executive, without the CEO or executives. “This decision was painted as a fait accompli. Mminele objected to this decision but he was overruled.”
“The risk committee did not deliberate on this; there was extensive lobbying by members of the PIC board, especially Maria Ramos, to terminate our accounts.”
Dr Survé said it is difficult not to suspect collusion between Absa and these companies, as they hoped for a forced sale due to termination of the group’s banking accounts. He accused the banks of being dishonest about their intentions for closing the accounts as no finger of wrongdoing could be pointed at his companies.
Pretoria News