Equality in South Africa is a myth as evidenced by the banks’ mercurial treatment of the Sekunjalo Group of companies by the country’s banking sector.
This is also an unfortunate reality for Independent Media, which is part of the Sekunjalo group of companies, which will have their accounts closed by financial services giant, Standard Bank later this month.
As George Orwell wrote in his novel, Animal Farm, “All animals are equal, but some animals are more equal than others”. This was a proclamation by the pigs who control the government in the novel.
Illustrating the unequal bias situation, is how even though the Sekunjalo Group, and Dr Iqbal Iqbal Survé have not been found guilty in any court of law of any wrongdoing, Standard Bank has issued notice that it will be closing some of these companies’ bank accounts.
On its website, Standard Bank states that it would close accounts (in general) if, "We believe or have a reasonable suspicion that a product is being used for any prohibited activities; • We believe or have a reasonable suspicion that your operation of any product directly or indirectly benefits a sanctioned entity; • We are notified that you are a sanctioned entity; • We must do so in terms of applicable laws.“
That said, there are many organisations and individuals whose activities have raised more than an eyebrow and who have flirted with the law who still retain their right to bank.
There is a clear contradiction to the bank’s action then, as there should be a blanket approach for all companies when it comes to account closures.
As a journalist, I have covered stories that include the embattled Steinhoff which in March 2019, released the summary findings of an independent forensic investigation. The investigation found that Steinhoff had recorded fictitious transactions amounting to $7.4bn, over the period from 2009 to 2017.
The investigation noted that a small group of senior management recorded fake transactions with “entities purported to be independent third parties to create the illusion of income used to hide losses at the company’s operating units.
The $7.4 billion (R123bn) figure represented 7% and 85% of Steinhoff’s cumulative revenue and operating income over the period.
Despite this, it is business as usual for the company as it can still trade freely because its bank accounts are still operational. And, although The company is set to be dissolved and delisted on the JSE, its bank accounts will remain intact.
Another example is EOH Holdings, which had corrupt former employees and directors who almost destroyed the entire group through tender fraud with state organisations such as the SA National Defence Force and the Department of Water and Sanitation.
The group is still in operation as we speak and none of the South African banks have moved to close the accounts of this company.
Yet another was SAP, which provides software systems to multinational corporations and governments that were involved in alleged corrupt transactions of R100 million.
Then there was KPMG, a global network of independent member firms offering audit, tax and advisory services. Their member firms’ clients include business corporations, governments, public sector agencies, and not-for-profit organisations. Another scandal that Business Report broke.
The list is endless. The cases have been vastly covered by the media with much adverse reporting, but these company's bank accounts are still functioning.
Now the question is, why have their bank accounts not been closed when there has been proof of corruption, and yet, the Sekunjalo Group and its group of companies have been given notice of bank account closure?
What is it about the Sekunjalo Group that has led Standard Bank to take this drastic step?
Standard Banks' reason is fear of "reputational damage". Will companies who have been found to have had corrupt employees not have this reputational damage?
It is difficult to get answers and as an employee, it is disheartening, as this leads to an uncertain future with more questions than answers.
BUSINESS REPORT