Independent Media slams account closure
Independent Media CEO Takudzwa Hové yesterday said the notice by Standard Bank that it would be closing its accounts was a ’blatant abuse of power by the banking sector’, reports Fin24.
As previously reported, Standard Bank has informed Independent Media – the company that publishes newspapers such as the Cape Times, The Star, and Isolezwe – that it will close its banking facilities on 21 August.
The decision is yet another blow to the struggling media group, which last month announced that it would have to cut at least 40% of its staff in a bid to save costs.
‘We assure you that this matter is being urgently attended to by our legal team as our constitutional rights have been infringed upon,’ he said.
'Management is also working on securing alternative transactional arrangements to protect the business and our livelihoods.’
The decision to close Independent Media's banking facilities follows a ruling by the Competition Appeal Court of SA, which found that Standard Bank did not engage in anti-competitive behaviour when it put the accounts of entities in Iqbal Surve's Sekunjalo group under review in 2022.
The ruling opened the way for Standard Bank to close the accounts of entities in the Sekunjalo stable, including those of Independent Media.
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.
