Absa cuts ties with 24 Survé companies
Absa has cut ties with 24 companies directly or indirectly controlled by Iqbal Survé’s Sekunjalo Investment Holdings.
In a move that an amaBhungane report on the Daily Maverick site describes as reminiscent of the beginning of the end of the Gupta empire, it notes that on 27 August 2020 Absa sent letters to every client directly or indirectly controlled by Survé’s Sekunjalo, giving 60 days’ notice of termination of services.
In subsequent court proceedings late last year, Absa general counsel Marthinus Janse van Rensburg insisted that ‘(Absa’s) continued association with customers in the Sekunjalo Group posed intolerable reputational, commercial and legal risks’.
The companies cut off from their banking facilities include Survé’s main JSE-listed vehicle, African Equity Empowerment Investments, its separately listed subsidiaries AYO Technology Solutions and Premier Fishing & Brands, and all subsidiaries of the three companies.
Sekunjalo-controlled Independent Media appears unaffected as it banks elsewhere, observes the report.
It adds the Sekunjalo empire has been almost completely silent about the development, despite the obligation on JSE-listed companies to publicly report all ‘price-sensitive’ information.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
