Documents reveal that an Investec official received millions in secret loans from the Moti Group during make-or-break discussions with the bank, reports amaBhungane.

When Investec found out the bank says it began an investigation, but the official resigned before it was completed.

The official, who had been tasked with monitoring one of Moti's companies on behalf of the bank, immediately took up a plum job with Moti. This is according to leaked documents from the #Motifiles show.

A letter from Investec states as at June 2014 Moti owed the bank over R2bn. By 2016 it was recorded that Investec was now exposed to Moti’s South African operations to the tune of R2.8bn with an additional R592m owed by Zimbabwean projects.

This escalating mountain of debt has twice forced Investec to drag Moti to the negotiating table to hash out complex restructuring plans.

One of these took effect in 2016 and the other in 2019.

However, while the first restructuring of the astronomical Moti debt was being negotiated, the Moti group concluded a secret loan agreement that at best set up a glaring conflict of interest, and at worst might have been viewed as an inducement.

Signed on 30 April 2015, the agreement provided one Jonathan Maurice Epstein with ‘bridging finance’ of R2.5m, to fund a social media start-up in which Epstein had an interest. Epstein was no normal business partner – he was part of the Investec team meant to be pinning down a mega-debtor. 

The compromising loan agreement and related documents form part of a massive leak from within the Moti Group which has sparked an intense legal and public relations fightback campaign by Moti.

Moti denies any wrongdoing, claims the documents are ‘stolen’ and told amaBhungane that while he not yet laid charges, he could ‘no longer in good conscience allow you to keep getting away with theft’.

The documents show Epstein continuing to enjoy the Moti group’s financial support well into the negotiation of the second major debt restructuring as well – ultimately receiving more than R14m in loans for the benefit of the start up during the remainder of his career at Investec.

Along the way the loans evolved into what was arguably a more acute conflict of interest as Epstein was assigned a specific oversight role at Moti’s Ferro Chrome Furnaces operations on the bank’s behalf.

The long relationship between Investec and Moti was seemingly unaffected even after the bank discovered the loan and, according to a response to questions, launched an investigation.

Epstein said although his departure was ‘abrupt’ no objections were raised by the bank to his employment with Moti.

He denied that the alleged financial relationship between himself and the Moti Group was intended to buy improper influence and leverage with the bank.

Full amaBhungane report