Johannesburg - The leader of the African Transformation Movement (ATM), Vuyo Zungula, has written to Finance Minister Enoch Godongwana urging him to intervene in the imminent closure of bank accounts belonging to Independent Media.
Standard Bank recently issued a notice of termination of banking services for the Sekunjalo Group following the judgment by the Competition Appeal Court (CAC), which found in July that Standard Bank had engaged in anti-competitive behaviour when it put Sekunjalo’s accounts under review based on allegations of reputational risk.
Following the ruling, Standard Bank told Sekunjalo it would shut its banking facilities on August 21, but this was postponed after the institution notified Sekunjalo of its intention to give effect to the termination of the accounts after September 2023.
Zungula, in a letter dated September 14, said ATM is concerned by the recent announcement by the bank indicating that it will close the company's bank accounts on September 15.
"I am writing to bring to your immediate attention a matter of utmost concern that demands urgent intervention: the recent decision by Standard Bank to close the bank accounts of Independent Media.
"First and foremost, it is with deep disappointment that I must convey the news of Standard Bank's decision to terminate the bank accounts belonging to Independent Media, citing concerns about reputational risk," he said.
Zungula said South African banks have not shown the same vigour in closing the accounts of other businesses such as Steinhoff and Glencore, both of which have in the past been embroiled in much more controversy and reputational risk than Independent Media.
"While we do acknowledge the importance of safeguarding the integrity of financial institutions, it is disheartening to see this decision when compared to the treatment of other entities such as Steinhoff and Glencore.
"Steinhoff, despite being implicated in a massive financial scandal that defrauded people of billions of rand, did not face the same repercussions. Similarly, Glencore, a company that has been embroiled in numerous controversies, has not lost its banking privileges. This disparate treatment raises questions about fairness and consistency in the financial sector, leaving many perplexed about the criteria employed by banks to make such determinations," he said.
In a letter issued in July, the editors from Independent Media told Standard Bank its plan to close the banking facilities of the company had been noted with extreme disbelief and disappointment as it would affect more than 30 companies under Sekunjalo, including Independent Media.
Zungula said the effects of this decision will have dire consequences for employees of the company and their families, and will add to the growing unemployment rate in the country.
"The consequences of this decision by Standard Bank extend far beyond the boardroom. Independent Media will inevitably be forced to lay off workers due to the loss of its bank accounts. This will contribute to the already grave issue of unemployment in our country and the economic hardships faced by our citizens.
"Moreover, I am deeply concerned about the broader implications and repercussions of this decision on media freedom in South Africa. A free and independent media is the cornerstone of a functioning democracy, and any threats to this freedom must be taken with the utmost seriousness," he added.
The Star