Latest news with #NthabelengLikotsi
The Star
25-05-2025
- Business
- The Star
AFRIBIZ rejects Likotsi's repayment offer, demands shares promised in collapsed R9 million deal
AFRIBIZ Financial Services has rejected a repayment offer from Nthabeleng Likotsi's YWBN Co-Operative, insisting that it wants the full 26% shareholding it was promised — ''not a refund, not excuses''. The financial services firm is taking a hard stance, accusing Likotsi of 'playing games with people's money' after a R9 million deal to invest in YWBN Mutual Bank collapsed due to YWBN's alleged failure to meet regulatory requirements. The fallout from the failed transaction has rocked confidence in what was once hailed as a historic moment for South Africa's financial sector — a black, female-led mutual bank. Now, AFRIBIZ is threatening to take the matter to court if the shares are not delivered, calling Likotsi's conduct not only unprofessional but potentially dishonest. 'Returning the money is not good enough. That was never part of the agreement,' said a source close to AFRIBIZ's legal team. 'They sold us shares. We paid. Now we want what we paid for.' According to AFRIBIZ, the R9 million payment was made on the understanding that it would secure a 26% stake in the bank. The payment was labelled 'non-refundable,' suggesting that the risk lay in the delivery of the shares, not the capital transfer. But when YWBN failed to submit key compliance documents to the Prudential Authority, the share issuance was halted. Rather than resolve the issue by delivering the agreed equity, Likotsi's YWBN allegedly offered AFRIBIZ just 2% of the shares in a so-called 'full and final settlement.' The offer was seen by AFRIBIZ as an insult. They rejected it outright, making clear that nothing short of the full 26% will suffice. Banking insiders say Likotsi's handling of the situation is damaging the credibility of the entire mutual banking concept in South Africa. 'She started on the wrong foot,' said one veteran financial executive. 'This was a chance to show leadership, but instead we're seeing delay tactics and evasive behaviour.' The controversy echoes past troubles. In 2021, the Companies and Intellectual Property Commission Tribunal ruled that YWBN had failed to comply with the Co-operatives Act and had to return investor funds. ''Now, the same governance concerns are resurfacing — only this time, the stakes are much higher. Likotsi has defended her position, saying YWBN remains open to future collaboration and was simply trying to accommodate AFRIBIZ after compliance issues arose. But critics say that's not enough. 'The damage is already done,' said Advocate Mandla Tshabalala, a corporate law expert. 'When someone pays for shares and you offer a refund instead, it sends the message that either the shares don't exist or you never intended to follow through.' As AFRIBIZ prepares to escalate legal action, the pressure is mounting on Likotsi to either honour the original agreement or risk being seen — publicly and legally — as breaking her word. For someone once celebrated as a trailblazer, the perception of dishonesty could prove more damaging than the legal outcome. With investor confidence waning, YWBN's future looks increasingly uncertain.
IOL News
25-05-2025
- Business
- IOL News
AFRIBIZ rejects Likotsi's repayment offer, demands shares promised in collapsed R9 million deal
Afribiz CEO Pongo Pule celebrating the Shareholders Agreement sign off with YWBN Directors Ms Ditebogo Mthimunye and Nthabeleng Likotsi in 2021 AFRIBIZ Financial Services has rejected a repayment offer from Nthabeleng Likotsi's YWBN Co-Operative, insisting that it wants the full 26% shareholding it was promised — ''not a refund, not excuses''. The financial services firm is taking a hard stance, accusing Likotsi of 'playing games with people's money' after a R9 million deal to invest in YWBN Mutual Bank collapsed due to YWBN's alleged failure to meet regulatory requirements. The fallout from the failed transaction has rocked confidence in what was once hailed as a historic moment for South Africa's financial sector — a black, female-led mutual bank. Now, AFRIBIZ is threatening to take the matter to court if the shares are not delivered, calling Likotsi's conduct not only unprofessional but potentially dishonest. 'Returning the money is not good enough. That was never part of the agreement,' said a source close to AFRIBIZ's legal team. 'They sold us shares. We paid. Now we want what we paid for.' According to AFRIBIZ, the R9 million payment was made on the understanding that it would secure a 26% stake in the bank. The payment was labelled 'non-refundable,' suggesting that the risk lay in the delivery of the shares, not the capital transfer. But when YWBN failed to submit key compliance documents to the Prudential Authority, the share issuance was halted. Rather than resolve the issue by delivering the agreed equity, Likotsi's YWBN allegedly offered AFRIBIZ just 2% of the shares in a so-called 'full and final settlement.' The offer was seen by AFRIBIZ as an insult. They rejected it outright, making clear that nothing short of the full 26% will suffice. Banking insiders say Likotsi's handling of the situation is damaging the credibility of the entire mutual banking concept in South Africa. 'She started on the wrong foot,' said one veteran financial executive.
IOL News
25-05-2025
- Business
- IOL News
AFRIBIZ takes on Nthabeleng Likotsi's YWBN over collapsed R9 million share deal
Nthabeleng Likotsi, once praised as South Africa's first woman to start a mutual bank, is now under scrutiny for a lack of transparency and mismanagement. Image: Picture: Supplied What was set to be the first black and female-owned bank is now facing a bleak future. AFRIBIZ Financial Services is taking legal action against YWBN Co-Operative Financial Institution and its founder, Nthabeleng Likotsi, after a failed R9 million share deal in the controversial YWBN Mutual Bank. AFRIBIZ says it is determined to see Likotsi do the right thing. The dispute began when AFRIBIZ paid R9 million to buy a 26% stake in YWBN Mutual Bank. However, the deal collapsed after YWBN allegedly failed to submit important compliance documents required by the Prudential Authority, South Africa's financial regulator. Without these documents, the regulator could not approve the issuing of shares, putting the entire deal on has accused YWBN of poor management and legal irregularities. The company says it spent significant time and money preparing for the investment and still wants to own the 26% stake it was promised. In a letter to AFRIBIZ, YWBN admitted it could not meet the compliance requirements and offered to return the R9 million, even though the payment was originally marked as 'non-refundable.' Still, this offer did not settle the matter. Instead, YWBN suggested offering just 2% of shares in full and final settlement, which AFRIBIZ rejected outright.'Our client remains committed to acquiring the full 26% shareholding,' AFRIBIZ's lawyers said in a statement following a meeting in April 2024. This clash comes as YWBN faces growing criticism about its operations, governance, and leadership. Likotsi, once praised as South Africa's first woman to start a mutual bank, is now under scrutiny for a lack of transparency and mismanagement. Back in 2021, the Companies and Intellectual Property Commission (CIPC) Tribunal ordered YWBN to return money to investors. It ruled that the bank had not followed legal rules under the Co-operatives Act, had poor financial recordkeeping, and had collected questionable 'non-refundable' membership fees from investors. More recently, investors have raised concerns about YWBN relying on celebrity endorsements instead of proving its financial credibility. Legal experts say this case highlights risks in investing in new or unregulated financial institutions. 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 ✕ Advocate Mandla Tshabalala, a corporate law specialist, said, 'For any bank or financial institution, compliance and transparency are not optional — they're essential. Regulators must stay alert.' As the legal battle heats up, AFRIBIZ is demanding that YWBN follow through on the original share agreement. Despite YWBN's offer to return the R9 million, AFRIBIZ says it will continue legal action until the full deal is honoured. This high-profile case has put the spotlight on South Africa's growing but fragile alternative banking sector. With trust in YWBN fading, many are now wondering if the dream of a women-led mutual bank can survive the fallout. Asked about the previous issues with the CIPC Tribunal and now the legal dispute with AFRIBIZ, Likotsi said the YWBN received its clearance certificate from the CIPC, which indicates that we are compliant with all governance requirements. 'AfriBIZ Financial Services had a business interest in YWBN, when they couldn't meet the minimum basic compliance requirements, we explored different ways they could participate, however, we could not reach an agreement. YWBN remains open and committed to engaging AfriBIZ in future business endeavours'
IOL News
08-05-2025
- Business
- IOL News
Court allows YWBN Mutual Bank to rebrand as eNL Mutual Bank ahead of launch
South Gauteng High Court allows YWBN Mutual Bank to rebrand as eNL Mutual Bank ahead of the launch Image: IOL / Independent Newspapers In a landmark ruling, the South Gauteng High Court has granted an urgent interim order in favour of YWBN Mutual Bank, allowing the bank to change its name to eNL Mutual Bank ahead of its scheduled launch next month. The court's decision on Wednesday comes amid ongoing delays and frustrations over the South African Reserve Bank (SARB) Prudential Authority's (PA) refusal to approve the name change, which threatens the bank's operational timeline. Background and Legal Action YWBN Mutual Bank was initially approved to establish in March 2021, with the South African Reserve Bank (SARB) granting authorisation on January 29, 2024, under Section 13 of the Mutual Banks Act. Despite this, the bank encountered hurdles when seeking the SARB's permission to amend its name. The Reserve Bank showed little interest in processing the request, effectively stalling the bank's plans to rebrand ahead of its launch. In response, Nthabeleng Likotsi, the founder of YWBN Mutual Bank, along with her legal team, filed an application in the South Gauteng High Court seeking an urgent order to compel SARB to approve the name change. Court Ruling and Key Quotes Judge Mudau presided over the matter and delivered a ruling that, while not fully deciding on the merits of the name change, granted a provisional order allowing the bank to proceed with rebranding. The court ordered SARB to, within 48 hours, record the new name, eNL Mutual Bank, in its official records. The court's judgment stated, "The respondent and the registrar are directed to, within 48 hours of this order, enter the new name in their records in place of the former name, provided the certificate previously issued is delivered for cancellation. A new certificate shall then be issued to the applicant under the new name." The court further indicated that SARB has until June 9 to justify why a full order should not be granted, effectively giving the regulator a final deadline to act. Impact and Significance This ruling marks a historic milestone, making Likotsi the first woman in South Africa to have her name associated with a bank—an achievement that places her among the ranks of notable banking pioneers such as Barclays and JP Morgan. In her affidavit, Likotsi stated that the proposed name has already been tested in the market during the 'Own the Bank Share Scheme,' surpassing its initial projections by attracting 10,000 subscribers—more than three times the target. 'This overwhelming response demonstrates strong public support for the name and the bank's mission." 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 ✕
