Standard Bank’s move does leave one questioning how Iqbal Survé, chair of Sekunjalo Investments – which is invested in more than 30 companies, among them Independent Media, African Equity Empowerment Investments, AYO Technology and Premier Fishing & Brands – plans to continue running his businesses if no banks want to deal with his companies. 

Other banks that have already slammed the door on Survé include FirstRand which owns FNB, Nedbank, Absa, Mercantile Bank, Sasfin, Investec Bank, Bidvest Bank and Access Bank. 

Standard Bank’s official media statement says the 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. 

Sekunjalo was provided with numerous opportunities to respond to various identified concerns and, earlier this year, Standard Bank confirmed that it was still waiting on responses to queries raised in July last year. 

However, citing confidentiality, the bank did not disclose reasons for its decisions and referred media to Sekunjalo for further information.

Just last month, Survé won an interim interdict in the equality court in Cape Town, preventing Nedbank from shutting all its accounts on grounds of racial discrimination. 

Handing down the ruling, Judge Mokgoatji Dolamo said that other banks would be unlikely to accept the Sekunjalo Group and its subsidiaries as clients if Nedbank shut down the group’s accounts. Nedbank was ordered to reopen any accounts it had closed and to pay Sekunjalo’s costs. Regardless of that ruling, Dolamo’s words have proved somewhat prophetic.

So, why are all the banks shutting Sekunjalo out? 

The answer lies in the controversy over the investments made by the Public Investment Corporation (PIC) in several Sekunjalo companies. 

Former PIC head Dan Matjila was allegedly friendly with Survé when the investments were made, and concerns have been raised over the due diligence (or lack thereof). 

The PIC is currently suing Independent Media, Sekunjalo Independent Media and AYO Technology – all of which are associated with Survé – to recover lost funds.

Sekunjalo is challenging Standard Bank’s decision via the high court. The bank has indicated it will be opposing this action, while noting that it will abide by any orders granted by the Competition Tribunal and/or the high court. BM/DM