Standard Bank slapped the group with a letter informing it that they would terminate its accounts by August 21.
Standard Bank’s decision to close accounts linked to Sekunjalo Group and related companies, including Independent Media, continues to draw country-wide outrage and condemnation, with some describing it as hypocritical and an attack on media freedom.
The bank slapped the group with a letter informing it that they would terminate its accounts by August 21.
Before this, the bank was ordered to keep the company’s accounts running prior to a final judgment.
The interim judgment, which was granted in September last year, was due to come to an end in March this year but was extended by six months.
At least 1 600 employees could be jobless following Standard Bank’s latest move.
Neither Independent Media nor Sekunjalo have been found to be involved in malfeasance, leading the company to believe that this decision was political and was part of the broader political attack against the Sekunjalo Group.
Adding his voice to the matter, chairperson of Youth Business Chain, Michael Mayalo, said the bank’s decision was not just an attack on a media company, but also on “democracy, freedom of speech, and the basic human rights of every South African”.
“Standard Bank's actions against Independent Media SA and IOL are an affront to all South Africans.
These are not faceless entities; these are institutions that employ around 1 600 people, supporting over 10 000 dependants. Real human beings whose livelihoods have been snatched away with the stroke of a pen,” he said.
Mayalo called on South Africans to rally together and stand up against institutions, as well as demand accountability, transparency and fairness.
“Let's not delude ourselves into thinking this is an isolated incident. Every single day, countless South Africans are wronged by banks. Homes are repossessed, businesses are shuttered, dreams are shattered, and yet these financial giants continue to act with impunity,” he said.
In an opinion piece, columnist Tom Eaton slammed the debanking, saying it was a “fairly disgusting practice” due to it being “hypocritical” and “dishonest”.
“The Zondo Commission proved the extent to which South African banks aided and abetted state capture.
“Standard Bank was specifically named in the final report, happily accepting hundreds of millions in dodgy deposits without ever flagging transactions that were, according to experts, blatant money-laundering,” wrote Eaton.
Banks are perfectly entitled to serve whichever customers they choose.
“They’re also entitled to run whatever reputation-laundering campaigns they wish. But I can’t help feeling that (UK’s Nigel) Farage and (Sekunjalo chairman Dr Iqbal) Survé, both highly public and controversial figures, are being offered up as sacrificial victims, while far nastier people move far dirtier through the same banking system, without a murmur of alarm from anybody,” he wrote.
Public Service and Commercial Union (PSCU) secretary-general Tahir Maepa said banks were now acting above the law.
“Banks are discriminating in broad daylight against the working class. Counting the cost of these practices amounts to billions that workers had to suffer simply because they dared to bank while black,” said Maepa.
In response to questions, Standard Bank said it strived to treat each customer fairly, based on the facts and merits of each matter.
“We adopt careful consideration of the bank’s obligations to act in accordance with regulations and our client’s interests. The decision to terminate any bank accounts or relationships is not taken lightly but with due regard to many factors.”
Cape Times