Only the banks can explain ‘reputational risk’: AYO Chair

AYO Technology Solutions chairperson Dr Wallace Mgoqi has said only the banks could explain exactly what they meant by ‘reputational risk’, because up to this day, they had not provided concrete substance as to what really constituted how certain entities or individuals presented such a risk.

This after Mgoqi revealed in an interview with Independent Media’s investigations unit, that Nedbank had terminated his personal bank account in February this year.

“This was purely because of my association with (Sekunjalo chairperson) Dr Iqbal Survé, as is the case with the other companies.

“The basis for it has always been from the banks’ side that it is due to the association with Survé.”

He said the cartel-like conduct of South African banks amounts to the throwing of stones whilst living in a glasshouse, is how AYO chairperson, Dr Mgoqi, described the banks’ move to shut down Sekunjalo and related entities’ banking accounts.

Mgoqi, however, points out Nedbank’s utter hypocrisy, referring to example Part 1 of the Zondo commission report, which reveals how Nedbank in particular, was reported to have been involved in transactions with Gupta companies, which amounted to corruption, stating that the banks were largely architects of their own reputational risk.

“Before you decide to be on the offence you have to be in a secure position because the Sekunjalo Group is not taking this lying down.

“This has been a long time coming and the group is now standing up to defend its position because there is way too much at stake.

“We’re talking about a company that’s got about 200 related companies under the group, about 8 500 employees who have about 40 000 dependents.

“If such a company collapsed, what implications would it have on so many people’s lives?” asked Mgoqi.

On the matter of so-called ‘reputational risk’, Mgoqi said only the banks could explain exactly what they meant by this, because up to this day, they had not provided concrete substance as to what really constituted how he, Mgoqi, posed the reputational risk that forms the basis of their discriminatory act.

“From their arguments, the basis seems to be the negative publicity that has raged since around 2013 when Survé acquired Independent Newspapers and all the titles under it, when the Irish sold the company.

“And from that time, suddenly someone who was the darling of the banks and other institutions turned foe.

“It’s even on record that Absa at one point, voted Survé bank man of the year.

“However, the moment he took over this powerful media platform – now Independent Media – all hell broke loose.

“Of course, things came to a head with the Public Investment Corporation (PIC) transaction and the negative publicity just escalated.

“It escalated to levels that actually caused President Cyril Ramaphosa to appoint a Commission of inquiry into allegations of impropriety at the PIC – dubbed the Mpati Commission.

“That commission’s terms of reference were to probe issues of governance within the PIC.

“It was shocking that even the Mpati commission report ended up being about Sekunjalo, the AYO transactions.

“Hopefully in the Equality Court, this matter will be fully ventilated, and our group would get a sense of what this reputational risk we pose, is,” said Mgoqi.

In a review report of the Mpati commission report, former Judge, advocate Willem Heath, has found that the Mpati commission not only failed to observe the rule of law by applying natural justice in its conduct, but that the findings of the commission are tainted by illegality.

“The commission arbitrarily and unlawfully changed its terms of reference without consulting the president (as the enabling authority) and/or informing the president and the public that the commission contrary to the rule of law, the principles of fairness (natural justice) and by the most simple interpretation, the conduct of the commission aforementioned was irrational and illegal,” reads Heath’s summation.

Mgoqi, who was appointed to the AYO board through the PIC’s own processes, said the banks’ actions were not justified, largely because the closing of bank accounts are fatal, as it would lead to, among other impacts, the termination of employment.

For his part, Survé said this was once again part of a co-ordinated strategy that was initiated and funded by the establishment to ruin his reputation, his businesses and companies linked to him, which include Independent Media.

Survé noted: “It’s clear that the establishment wants to wipe out voices that are committed to transformation and black economic empowerment. This concerted propaganda campaign started way back in 2018, and it’s now in full swing as we approach the 2022 ANC National Conference.

“It’s clear that the establishment and its media proxies can’t afford to let Sekunjalo, and Independent Media still have a voice, so after a four-year attempt to destroy us, they have resorted to using financial institutions to deliver a ‘fatal blow.’

“The banks have a case to answer to at the Equality Court, as they have violated our constitutional rights.

“We will continue with our legal action and will sue for damages to protect our employees, our suppliers and ultimately transformation,” said Survé.

He reiterated that no Sekunjalo company had ever been involved in corruption or money laundering, and there was therefore, no just cause to sound the ‘reputation risk’ alarm bell.

sizwe.dlamini@falcons.org.za