CAPE TOWN – An order handed down by Judge Matthew Francis in the High Court, Western Cape late Tuesday, 15 February 2022, revealed that transformative justice has an important role to play in South Africa’s banking sector..
In a David versus Goliath battle, and to ensure empowerment and transformation, as well as to stop abuse by South Africa’s all-powerful banking fraternity of socio-economic inequity, the wider Sekunjalo Group has launched several legal actions.
Judge Francis was ruling on a group action urgent interdict that was brought by 43 companies within the Sekunjalo Group against Nedbank. These include the listed entities African Equity Empowerment Investments (AEEI) and Premier Fishing and Brands (PFB).
Nedbank has issued companies affiliated to the broader Sekunjalo Group, with notice to terminate their banking facilities, citing that their (Nedbank’s) reputation was in jeopardy in dealing with any company related to the Sekunjalo Group. This, in the face of condemning revelations revealed in the Zondo Commission report and Nedbank’s apparent links to corruption.
It is, therefore, Sekunjalo’s contention that the yardstick which is used by Nedbank in assessing the reputational risk posed to it by the Sekunjalo Group, differs markedly from the one it uses in respect of the “white” companies.
However, as confirmed by the High Court judgement, which found in favour of the Sekunjalo Group in terms of urgency, it was not an outright victory for Nedbank, whose counsel had once again used the Supreme Court of Appeal Bredenkamp and others Vs Standard Bank and others 2010 case, to defend Nedbank’s ironic decision. In this matter, Judge Francis considered the Bredenkamp outcome should not be used mechanically by banks for summarily terminating contracts and that due consideration should be given to Constitutional merits.
Nedbank has given some of the companies in the Group until 15 February, others 22 February and 15 March, to find alternative banking measures. For others, the guillotine is set to fall in May 2022.
Given that the Sekunjalo Group of companies has also filed a petition at the Equality Court, Judge Francis ruled he could not hear the merits of the case in the High Court, as jurisdiction in this case applied.
To the all-important point of transformative justice raised by Judge Francis, transformative constitutionalism argues that socio-economic rights are justiciable and engenders a culture of respect for human life and dignity – no matter their culture. The Sekunjalo Group of Companies believes its socio-economic rights have been negated by Nedbank, something it appears that Judge Francis concurs with.
Dr Iqbal Survé, founder of Sekunjalo Investment Holdings (SIH), said: “Sekunjalo (the Group) is being targeted in a proxy battle for control of the media. Banks are being used to close Sekunjalo Group accounts to destabilise the Group, with what we believe to be the aim as being the complete destruction of Independent Media.
“This is part of an ongoing battle between the political establishment of President Ramaphosa and his proxies, who have targeted Sekunjalo through regulatory institutions such as the JSE, FSCA and CIPC and more.”
Harassment and Abuse
The Group also firmly believes that the Johannesburg Stock Exchange (JSE), amongst many such entities and bodies, has subjected it to harassment, and repeatedly so over the last few years. It is the Group’s understanding that this prejudice commenced in earnest on Cyril Ramaphosa assuming presidency of South Africa.
It is the media’s role to hold Government to account. However, since Independent Media’s exposé of the CR17 funding campaign, and several corrupt activities under the president’s watch, such as the PPE funding scandal and numerous other corrupt deals involving his government and cabinet ministers, this harassment has escalated.
Neither SIH nor any of its Group companies have ever been found guilty of wrongdoing or irregularities, this despite intense investigation by the Mpati Commission and other bodies.
On the contrary, there are at least 20 companies operating in South Africa today, which have openly admitted to fraud and corruption. They have had not had their banking facilities revoked. Instead, they have maintained their transactional abilities, uninterrupted, even though some of their directors have been criminally charged and arrested, and others have been implicated in the state capture commission, including as aforementioned, Nedbank.
(It is worth noting that the City of Cape Town has put Nedbank to terms, citing that the City’s reputation is itself at risk by its association to the bank).
The banks themselves, in terms of their conduct, are guilty of corruption, as has been shown in numerous cases; with Nedbank/Regiment Capital, Investec Bank and the global tax fraud matter, and FNB regarding Wesbank’s collusion with Toyota. And all banks have been found guilty of Rand fixing according to the Competitions Commission.
These banks have claimed that they have suffered reputational damage by their association to Dr Iqbal Survé and the wider Sekunjalo Group. They have cited negative (and we must state, factually incorrect) media articles by independent media’s competitors/ detractors as the source to underpin their averments.
The Group strongly denies the legitimacy of this citation.
In fact, it is the Group’s assertion that the arbitrary and irrational decision to group boycott and terminate the Sekunjalo Group companies’ banking facilities, smacks of tyranny, political intervention, and collusion. The conduct of the banks is nothing short of anti-transformation, anti-job creation and anti-business. It also flies in the face of the country’s Constitution.
The Equality Court case has been brought against eight (8) of South Africa’s leading banks. Respondents include ABSA Bank, First National Bank, Nedbank, Investec Bank, Sasfin Bank, Mercantile Bank among others.
The Group is awaiting an urgent interdict date and will advise the market accordingly.
Consequently, the affected listed entities within the wider group have felt it prudent to issue a cautionary notice in accordance with the JSE rules and regulations.
Those entities include:
African Equity Empowerment Investment (AEEI) Premier Fishing and Brands.
What is fair, reasonable, equitable in law and in life, and in terms of the Constitution, should apply equally to banking institutions as much as it does to everyone else.
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