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IOL News
14-07-2025
- Business
- IOL News
Pityana prepares for another legal showdown with Absa and SA Reserve Bank
Sipho Pityana said the judgment is a win not just for me, but for the integrity of our financial system and the rule of law in South Africa. Former Absa board member Sipho Pityana is bracing for another bruising battle with the bank as well as the South African Reserve Bank (Sarb) in the court of law in his fight for reform in the banking sector. This comes as Absa and the Sarb's Prudential Authority (PA) both filed applications for leave to appeal the Pretoria High Court ruling last month that vindicated Pityana in his claim that the PA broke the law in interfering with his possible nomination as Absa chair in 2021. The PA controversially consulted with third parties regarding his suitability for the chairperson role, particularly following inquiries into his resignation from AngloGold Ashanti amid allegations of sexual harassment - claims he firmly denies. The court found that the PA acted unlawfully by adopting an informal process to review Pityana's nomination, as prescribed by the regulations in place under the Banks Act. Pityana's legal battle began when he sought a declaratory order against the PA, claiming they had operated outside the legal framework established for such considerations. He did not seek any relief against Absa. However, Absa said it would take the judgment on review. 'After careful consideration of the 13 June 2025 High Court judgement, Absa will respectfully seek leave to appeal. It should be noted that the Court made no findings against Absa, save to order that it was jointly liable with the Prudential Authority for the applicant's costs,' Absa told Business Report on Monday. The court's judgment, delivered by Judge Flatela Luleka last month, established that the PA had indeed overstepped its bounds by failing to follow established protocols, thus denying Pityana the opportunity to contest objections to his appointment. 'The [PA] acted unlawfully and in excess of its power per the Banks Act 94 of 1990 by engaging in an informal process with the [Absa Group] and [Absa Bank] in connection with the nomination of [Pityana] as chairperson of the [Absa Group] and [Absa Bank's] board of directors, and in particular by notifying the [Absa Group] and [Absa Bank] of its objection, alternative intention to object to [Pityana's] nomination,' read the judgment. PA spokesperson, Thoraya Pandy, also confirmed on Monday that the PA is going back to court on the matter. 'Yes you are right, we have lodged an appeal. The documents are in the public domain and you can reach out to the courts for it, as we do not share it directly to anyone,' Panday said. Speaking with Business Report last month, Pityana said the case had raised serious concerns regarding the independence of the Sarb and also urged for a formal investigation into what he describes as "cosy relationships" between key figures in the banking sector. He said the judgement raised a number of new questions in terms of transparency, good governance and ethical conduct in the financial sector's regulatory environment, as well as accountability when laws are broken. On Monday, Pityana said there was nothing really surprising about these applications for leave to appeal. 'The more curious one is why Absa is appealing the judgement when no finding is made against them. Indeed, why are they spending so much resources on a case in which they are cited only as an interested party. It already speaks to collusive behaviour,' Pityana said. Pityana's legal battle extends beyond this ruling; he is also contesting his removal from the Absa board through separate legal proceedings. BUSINESS REPORT
IOL News
26-06-2025
- Business
- IOL News
Sipho Pityana calls for investigation into SA Reserve Bank's independence after Absa debacle
Former Absa board member Sipho Pityana has raised serious concerns regarding the independence of the South African Reserve Bank (Sarb) Image: Itumeleng English/Independent Newspapers Former Absa board member Sipho Pityana has raised serious concerns regarding the independence of the South African Reserve Bank (Sarb), urging for a formal investigation into what he describes as "cosy relationships" between key figures in the banking sector. Pityana's remarks come on the heels of a Pretoria High Court ruling that has cast doubt on the conduct of Sarb's Prudential Authority (PA) during his controversial nomination process as chair of Absa Bank in 2021. The court found that the PA acted unlawfully by adopting an informal process to review Pityana's nomination, as prescribed by the regulations in place under the Banks Act. This ruling not only vindicated Pityana but also brought to light the opaque interactions between the regulatory body and external parties. Pityana's legal battle began when he sought a declaratory order against the PA, claiming they had operated outside the legal framework established for such considerations. The PA controversially consulted with third parties regarding his suitability for the chairperson role, particularly following inquiries into his resignation from AngloGold Ashanti amid allegations of sexual harassment - claims he firmly denies. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The court's judgment, delivered by Judge Flatela Luleka, established that the PA had indeed overstepped its bounds by failing to follow established protocols, thus denying Pityana the opportunity to contest objections to his appointment. 'The [PA] acted unlawfully and in excess of its power per the Banks Act 94 of 1990 by engaging in an informal process with the [Absa Group] and [Absa Bank] in connection with the nomination of [Pityana] as chairperson of the [Absa Group] and [Absa Bank's] board of directors, and in particular by notifying the [Absa Group] and [Absa Bank] of its objection, alternative intention to object to [Pityana's] nomination,' read the judgment. Speaking exclusively to Business Report on Wednesday at his office in Johannesburg, Pityana said the court ruling was a reminder to all, especially those in powerful positions, that they cannot disregard the rule of law. He said the judgement raised a number of new questions in terms of transparency, good governance and ethical conduct in the financial sector's regulatory environment, as well as accountability when laws are broken. 'I think that this is a case where the Reserve Bank has revealed itself to be capable of being manipulated by an outside person, that Maria Ramos was. And this stems from widely known relationships between her and maybe her family with the Reserve Bank leadership and or the National Treasury leadership, because it's basically her pushing this,' Pityana said. 'So we have a leadership in the governors of the Reserve Bank who are capable of being ordered around by Maria Ramos. This thing happened not because the governors of the Reserve Bank didn't know what the Banks Act says about these processes. They crafted a different procedure in order to make good to Maria Ramos' desires. 'What does accountability look like when a leadership of the Reserve Bank entrusted with an independent and powerful institution that the Reserve Bank is has been found to have failed to act without favour or prejudice? So this thing about the independence of the Reserve Bank is a weighty matter.' Ramos, now serving as chair of Standard Chartered, has not responded to requests for comment following the judgment. Meanwhile, the PA has signalled that it is currently reviewing the judgment before issuing a formal statement. 'The PA is studying the judgement and will comment on the matter at an appropriate time,' said PA spokesperson, Thoraya Pandy. Pityana said what was concerning was the fact that the regulator's excesses may have compromised its pivotal role as a trusted custodian of the integrity of the financial services sector. He said he had taken the Herculean task of taking the PA to court as a matter of principle because of the injustice meted out to him and also because board members should not be anyone's lackey as independent directors. The former Absa director further articulated the personal toll the legal battle has exacted on him and his family, acknowledging the Herculean nature of challenging a powerful institution. 'But it's not something I'm prepared to allow to shape my destiny, to be a preoccupation for me. I'm not pursuing Maria, that would be small. The big thing for me is that our leadership wakes up to the fact that you can't give the Reserve Bank a blank check,' Pityana said. 'There are too many of these instances about the Reserve Bank and its transgressions that, surprisingly for me, have not gotten the Minister of Finance, but importantly, Parliament's relevant structures to actually prove and find out what the hell is going on with the Reserve Bank.' Pityana's legal battle extends beyond this ruling; he is also contesting his removal from the Absa board through separate legal proceedings. 'A court of law has decided that, indeed, the conduct of the Reserve Bank was unlawful. If the Reserve Bank is found to have acted unlawfully, it would mean we as the board of Absa also acted unlawfully. That's the reality,' Pityana said. 'The moment now for the pig to fry in its own fat. This is their logic.' In response to Business Report, Absa also said it was studying the judgment.
IOL News
12-06-2025
- Business
- IOL News
10 years later: Pastor convicted for operating R329m ponzi scheme in Cape Town
Pastor Colin Davids Image: file It has taken 10 years to convict Pastor Colin Davids of Platinum Forex CC, and his co-accused Derek Bredenkamp, who were found guilty of operating a ponzi scheme, soliciting investments worth R329 million from the public. The duo were convicted of fraud on Tuesday following a mammoth court case running since 2015. In 2015, the Western Cape High Court granted the preservation order to seize the assets of Platinum Forex. It was due to the successful investigation of the Financial intelligence Centre (FIC), the Hawks and the police that led to the conviction. The State proved that Platinum Forex, a close corporation based in Parow, unlawfully collected more than R100 million from unsuspecting members of the public under the guise that it was a lawful investor that invests in foreign exchange investments (forex). It was also proven that Platinum Forex was not registered as a financial service provider and was not lawfully entitled to conduct the business of a banker. According to Hawks spokesperson, Siyabulela Vukubi, Davids, 56, and Bredenkamp, 58, were convicted of fraud in the Bellville Specialised Commercial Crimes Court. 'During the period 2009 to 2015, Colin Davids, Platinum Forex CC and Derek Bredenkamp operated a ponzi scheme. "They solicited investments from the public to the amount of R329 million. "They promised investors a monthly return of 2% to 8% and guaranteed the invested amount at the end of the investment period. "The accused paid investors with another investors' money and alternatively with the new investors' money. 'The matter was investigated by the Hawks' Bellville-based Serious Commercial Crime Investigation and the court eventually found the three accused guilty on: Count 1: Contravention of section 7(1) Financial Advisory and Intermediary Services Act 37 of 2002; Count 2: Contravention of section 11(1) of the Banks Act 94 of 1990; one count of money laundering by contravening of Section 4 of POCA, Act 121 of 1998; and 56 counts of fraud. 'A confiscation order of approximately R100 million was granted against the accused and his business. 'Furthermore, the accused bail has been cancelled and they were remanded in custody awaiting sentencing that will be handed down on June 18, 2025.' According to previous court papers, shared via the National Prosecuting Authority, investigations showed that contrary to the promise made to clients that their monies would be invested in the forex market, some of the monies were in fact "invested" in short-term investment accounts held with ACM Gold and Forex Trading (Pty) Ltd, a Gauteng-based entity and Nedbank. The court papers states that Davids used some of the investors' funds to pay for two immovable properties in Plattekloof and Hermanus, motor vehicles for his wife, household expenses from retail stores such as Woolworths, Checkers and Pick n Pay. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
