Absa has cut ties with 24 companies directly or indirectly controlled by Sekunjalo Investment Holdings, the empowerment company founded by Iqbal Survé, according to the amaBhungane Centre for Investigative Journalism.
The bank is alleged to have sent letters to all clients that were directly or indirectly controlled by Sekunjalo on August 27 2020, giving them 60 days notice that Absa was terminating its services to them, the independent non-profit news organisation said.
Absa’s legal counsel, Marthinus Janse van Rensburg, argued in subsequent legal proceedings that Absa’s “continued association with customers in the Sekunjalo Group posed intolerable reputational, commercial and legal risks,” amaBhungane reported.
Phumza Macanda, Absa’s head of media relations, said the bank is not legally permitted to comment on matters pertaining to clients.
“As a bank, Absa maintains confidentiality in respect of any information it may come to know or which may be disclosed to it during the course of the banking relationship,” Macanda said in an e-mail. "In these circumstances, we are unable to comment on the position or affairs of our client”
Phone calls to numbers listed on Sekunjalo’s website were not answered. At the time of going to print the company had not yet responded to questions from Business Day posted on its website's contact form.
The amaBhungane's report stated that Absa terminated banking services for Survé’s main JSE-listed investment company, African Equity Empowerment Investments (AEEI), as well as its separately listed subsidiaries, Ayo Technology Solutions and Premier Fishing & Brands, along with all their subsidiaries. The report said Independent Media, which is also controlled by Sekunjalo and owns brands such as The Star, Cape Times and Cape Argus, was not affected as it is not an Absa client.
Citing court papers amaBhungane said Sekunjalo’s Premier Fishing had approached the Western Cape High Court in 2020 in an attempt to stop Absa from terminating its banking services or to at least extend its notice period. Absa is said to have filed an answering affidavit on November 5 prompting Premier to withdraw its case four days later, amaBhungane reported.
AEEI's share price fell 35.4% to 95c as of 12.06pm in Johannesburg on Thursday. Data on Ayo showed the share last traded on Wednesday when it closed unchanged at R7. Premier Fishing shares closed 5.3% higher on Wednesday at R1, with no apparent trading in the stock having occurred on Thursday.
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