SA’s largest commercial banks have defended decisions to either review or terminate their banking relationships with companies linked to Iqbal Survé, saying the treatment of his business empire wasn’t unusual or outside of normal banking practices, especially when dealing with high-profile and risky clients. 

And because of this, notes a Daily Maverick report, the banks – mainly Nedbank, Standard Bank, and FirstRand (owner of FNB) – want the Competition Tribunal to toss out an application brought by Survé’s companies that seeks to force the banks temporarily to reverse their decision.

Others, including Absa, Mercantile Bank, Sasfin Bank, Investec Bank, Bidvest Bank and Access Bank, have joined the tribunal action.

Survé’s Sekunjalo Investments is invested in more than 30 companies, among them Independent Media, African Equity Empowerment Investments, AYO Technology and Premier Fishing & Brands. 

In December 2021, Sekunjalo lodged a complaint at the Competition Commission against nine commercial banks, accusing them of engaging in anti-competitive behaviour, abusing their dominance and breaching the Competition Act when they decided to cut ties with Survé’s companies. 

While the commission is still investigating Sekunjalo’s complaint, the company and 36 of its other entities approached the Competition Tribunal for an interim order that seeks to force FirstRand, Absa, Mercantile Bank, Sasfin Bank, Investec Bank, Bidvest Bank and Access Bank to restore its accounts.

Sekunjalo also wants Nedbank and Standard Bank to be prohibited from terminating their relationship with the company and its other entities. Sekunjalo wants the bank accounts to be restored until the commission decides on whether the banks have been found guilty of violating the Competition Act.

Sekunjalo believes that the Competition Commission’s investigation of its complaint against the banks will take another six months to conclude.

Hearings for the interim order application will continue today.

Vuyani Ngalwana SC, acting for Sekunjalo and its entities, accused the banks of co-ordinating their discussions – a ‘sign’ that banks allegedly colluded and fell foul of the law, mainly the Competition Act, says the DM report. 

Ngalwana also noted that the Public Investment Corporation (PIC) is invested in most of the commercial banks. He argued that the banks, with the PIC (which is suing Survé and Sekunjalo to recover any monies allegedly awarded irregularly), have a common interest in seeing banking facilities being denied to Sekunjalo, a ‘black-owned and managed company’. 

‘Sekunjalo has not been charged with money laundering or terrorism but it is being subjected to economic strangulation because bad things have been written about the company by rival media. Banks don’t like Dr Survé and are flexing their muscles for sinister goals, hampering transformation and Sekunjalo’s contribution to the economy,’ Ngalwana argued.

Alfred Cockrell SC, acting for Nedbank, said Sekunjalo has not provided ‘a shred of evidence’ to suggest that Nedbank had worked with other banks to review its relationship with Survé’s businesses. 

‘Nedbank made the decision to close the accounts independently,’ said Cockrell. 

He said Nedbank’s decision to cut ties with Survé’s empire is part of the exercise by banks to assess the risk of their clients.

Steven Budlender SC, acting for Standard Bank, and Advocate Penny Bosman, acting for FirstRand, rejected Ngalwana’s suggestion that the PIC had influenced the decision by banks to not offer new banking facilities to Sekunjalo and its entities.

The PIC holds about 14% in Standard Bank and 14.7% in FirstRand.

Budlender and Bosman argued that this level of PIC shareholding was not enough to influence the operational decisions of the respective banks.

Full Daily Maverick report