Standard Bank says it has decided to cut its ties to Cape Town businessman Iqbal Survé’s Sekunjalo group following a “comprehensive client review process”.
The bank was one of the few South African banks that had not already terminated banking services to the group, citing reputational risk.
Standard Bank said on Tuesday that:
In reaching this decision, Standard Bank considered a number of factors related to the Sekunjalo Group, some of which are in the public domain, and applied its risk management principles against which all prospective and existing clients are evaluated and assessed
“As part of the client review process, Standard Bank also provided the Sekunjalo Group with numerous opportunities to respond to various concerns that had been identified.”
The bank said it would not be disclosing the exact reasons for its decision due to client confidentiality.
“We note that the Sekunjalo group is challenging our decision to discontinue the relationship at the high court, which we are opposing.”
The bank’s announcement was preempted by Survé in an article published on Tuesday morning, where he said the bank would be terminating the banking facilities of the Independent Media group, the owners of the Cape Times, Weekend Argus and the Star.
“As many of you are aware, the entire Sekunjalo group has been bullied by the banking cartel,” wrote Survé.
“Never in the history of our country has such a large entity, with more than 8 000 direct and indirect employees, been the focus of such attention, and outright discrimination. And it is all aimed at silencing Independent Media.”
Pulling out
Most of South Africa’s major banks, including Capitec, Absa and Investec have already cuts ties with Sekunjalo, arguing it was high risk client that had been implicated in wrongdoing in the Mpati Commission of Inquiry’s Report into the Public Investment Corporation (PIC). Survé and Sekunjalo have denied that the report made any adverse findings against them.
Nedbank has also attempted to cut its ties with Sekunjalo, but last month Survé and Sekunjalo managed to obtain an interim interdict ordering the bank to retain them companies as clients.
“Temporary interdicts are a common procedural remedy pending a full examination of the parties’ rights and all relevant facts in due course. No permanent finding has been made at this stage,” Nedbank said at the time.
Source: News 24
