Latest news with #Vavi
The Star
27-06-2025
- Business
- The Star
Claims that 'ANC politicians are behind' Zwelinzima Vavi's Standard Bank woes
Sources close to South African Federation of Trade Unions (Saftu) General Secretary Zwelinzima Vavi have alleged that ANC politicians are targeting him through Standard Bank. The allegations stem from the bank's failed attempt to foreclose on Vavi's Sandton home, despite him consistently paying off arrears on his home loan. According to insiders, Vavi's vocal criticism of the ANC, particularly regarding corruption and policy direction, has made him a target. "Vavi has been too critical of the ANC in recent years and was outspoken about President Cyril Ramaphosa's Phala Phala scandal... He has also been critical of the corruption that has been taking place within the ANC in recent years, making him a target," a source revealed. The High Court in Johannesburg, last week, ruled in favour of Vavi, dismissing Standard Bank's bid to foreclose on his home. Judge Stuart Wilson slammed the bank for its "disproportionate" attempt, stating that Vavi had shown "an apparently perfect adherence" to paying his monthly installments. The judge also criticised the bank for demanding over R160,000 in legal costs, almost double the outstanding arrears. Vavi's history with the ANC and Cosatu has been marked by controversy and criticism. He was previously fired from Cosatu due to escalating tensions and disagreements with the federation's leadership. His criticism of the ANC's corruption and policy direction further strained his relationship with the party. ANC spokesperson Mahlengi Bhengu did not respond to questions sent to her. Cosatu's spokesperson Matthew Parks said the Federation was aware of the matter but were not buying into claims that there was a political controversy around the issue. "We don't buy the story that he (Vavi) was targeted political party owns a bank or can influenece a bank. "We obviously sympathise with the judge was scathing towards Standard Bank in his ruling. We always say that there should be a better way to resolve these issues, other than going to court," Parks said. The Vavi case is not an isolated incident. Standard Bank has faced criticism for handling mortgage arrears and foreclosure proceedings. A R60-billion class-action lawsuit against major South African banks, including Standard Bank, highlights systemic issues with how banks handle mortgage arrears. Advocate Douglas Shaw, leading the lawsuit, alleges that banks frequently proceed with sales even when foreclosure is not a last resort, and often impose excessive legal costs. "We often see banks act in a manner we consider irresponsible. You cannot trust them to do what most people would see as 'the right thing',' Shaw said. In another case the bank was again accused of using underhanded tactics to short change its clients, claiming that a couple had defaulted in their bond repayments after they were allegedly overcharged by the bank. Shamilla Pather and her husband Roman, of Pinetown, said at the time that they were overcharged by the bank which, they say, has also prolonged court processes intended to resolve the matter. They accused the bank of expecting her and her husband to pay R600,000 or more over a 10-year period in lieu of one month of arrears of R8,800. In another case in 2023, a couple Patrick and Polin Anthony from Gauteng, defaulted on their mortgage payments for their home in Forest Hill, Gauteng. However, Standard Bank debited an amount of R124,047,34 from Anthony's family bank account allegedly after increasing the interest rate from prime -1% to prime +1% from August 1, 2009. This allegedly resulted in an overpayment of R135,301,30, according to financial investigator Emerald van Zyl, who said the overpayment was revealed by an independent actuary as he accused the bank of having allegedly increased the prime rate through internal policy. Standard Bank did not respond to the claims that political interference had led to banking action against Vavi, but responded to other questions. The bank's spokesperson Ron Derby said the bank wished to clarify that on 12 June 2025, Vavi's matter was postponed, and no final court order was granted dismissing the bank's application. 'Regarding this matter, the home loan account has been in arrears since 2015. Over the years, the bank has extended multiple opportunities to the homeowner to get the account up to date. Legal proceedings were only initiated in 2022, after all other avenues to resolve the matter amicably had been exhausted…Legal action is never our first course of action — it is a measure of last resort. 'With regards to the matter of Mark Rowan and Shamilla Pather, Standard Bank has engaged directly with the clients to discuss an amicable resolution. Any resolution arrived at is subject to confidentiality agreements and therefore the details cannot be made publicly available. "We are committed to supporting our clients through financial challenges and strongly encourage clients to engage with us at the earliest signs of financial distress. Early engagement enables us to work collaboratively to find solutions that are sustainable and mutually beneficial,' Derby said. [email protected]
IOL News
24-06-2025
- Business
- IOL News
Claims that 'ANC politicians are behind' Zwelinzima Vavi's Standard Bank woes
Saftu general secretary Zwelinzima Vavi prevented the foreclosure of his primary residence by Standard Bank. Image: Itumeleng English / Independent Media Sources close to South African Federation of Trade Unions (Saftu) General Secretary Zwelinzima Vavi have alleged that ANC politicians are targeting him through Standard Bank. The allegations stem from the bank's failed attempt to foreclose on Vavi's Sandton home, despite him consistently paying off arrears on his home loan. According to insiders, Vavi's vocal criticism of the ANC, particularly regarding corruption and policy direction, has made him a target. "Vavi has been too critical of the ANC in recent years and was outspoken about President Cyril Ramaphosa's Phala Phala scandal... He has also been critical of the corruption that has been taking place within the ANC in recent years, making him a target," a source revealed. The High Court in Johannesburg, last week, ruled in favour of Vavi, dismissing Standard Bank's bid to foreclose on his home. Judge Stuart Wilson slammed the bank for its "disproportionate" attempt, stating that Vavi had shown "an apparently perfect adherence" to paying his monthly installments. 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 judge also criticised the bank for demanding over R160,000 in legal costs, almost double the outstanding arrears. Vavi's history with the ANC and Cosatu has been marked by controversy and criticism. He was previously fired from Cosatu due to escalating tensions and disagreements with the federation's leadership. His criticism of the ANC's corruption and policy direction further strained his relationship with the party. ANC spokesperson Mahlengi Bhengu did not respond to questions sent to her. Cosatu's spokesperson Matthew Parks said the Federation was aware of the matter but were not buying into claims that there was a political controversy around the issue. "We don't buy the story that he (Vavi) was targeted political party owns a bank or can influenece a bank. "We obviously sympathise with the judge was scathing towards Standard Bank in his ruling. We always say that there should be a better way to resolve these issues, other than going to court," Parks said. The Vavi case is not an isolated incident. Standard Bank has faced criticism for handling mortgage arrears and foreclosure proceedings. A R60-billion class-action lawsuit against major South African banks, including Standard Bank, highlights systemic issues with how banks handle mortgage arrears. Advocate Douglas Shaw, leading the lawsuit, alleges that banks frequently proceed with sales even when foreclosure is not a last resort, and often impose excessive legal costs. "We often see banks act in a manner we consider irresponsible. You cannot trust them to do what most people would see as 'the right thing',' Shaw said. In another case the bank was again accused of using underhanded tactics to short change its clients, claiming that a couple had defaulted in their bond repayments after they were allegedly overcharged by the bank. Shamilla Pather and her husband Roman, of Pinetown, said at the time that they were overcharged by the bank which, they say, has also prolonged court processes intended to resolve the matter. They accused the bank of expecting her and her husband to pay R600,000 or more over a 10-year period in lieu of one month of arrears of R8,800. In another case in 2023, a couple Patrick and Polin Anthony from Gauteng, defaulted on their mortgage payments for their home in Forest Hill, Gauteng. However, Standard Bank debited an amount of R124,047,34 from Anthony's family bank account allegedly after increasing the interest rate from prime -1% to prime +1% from August 1, 2009. This allegedly resulted in an overpayment of R135,301,30, according to financial investigator Emerald van Zyl, who said the overpayment was revealed by an independent actuary as he accused the bank of having allegedly increased the prime rate through internal policy. Standard Bank did not respond to the claims that political interference had led to banking action against Vavi, but responded to other questions. The bank's spokesperson Ron Derby said the bank wished to clarify that on 12 June 2025, Vavi's matter was postponed, and no final court order was granted dismissing the bank's application.
The Citizen
24-06-2025
- Business
- The Citizen
R60bn class action suit against the banks set down for 2026
Hundreds say their properties were repossessed and sold by the banks for a fraction of their worth. At stake for the banks – the average loss of home equity multiplied by more than 100 000 homes repossessed since 1994. Plus interest. Picture: Adobe Stock Several hundred former homeowners who say their properties were repossessed and unlawfully sold by the banks for a fraction of their worth will finally get their day in court in February 2026 for a R60 billion class action suit that was initially launched in 2017. The court must first decide whether the class can be 'certified', a formal process that would allow the complainants to sue as a single entity. 'It's taken eight years to get this far, but we are moving in the right direction,' says Advocate Douglas Shaw, who is representing the former homeowners. The first hurdle to overcome is an objection by the banks to some of the affidavits filed by some applicants. Four South African banks are cited as respondents – Nedbank, Absa, Standard Bank and FirstRand Bank. Read more Standard Bank's 'disproportionate' attempt to foreclose on Vavi's home fails Also cited are the National Credit Regulator (NCR), the Minister of Justice and Constitutional Development, and the South African Human Rights Commission. The applicants in the case had their homes repossessed after supposedly falling into arrears, with some homes being auctioned by the banks for R1 000 and even less. This was at a time when there was no floor (or reserve) price required by the courts. Court rules were changed in 2017, requiring banks to reserve prices in all but exceptional circumstances. ALSO READ: Class action suit shows banks sell repossessed houses for cents in the rand Big numbers The R60 billion figure is the estimated average loss of home equity multiplied by the more than 100 000 homes repossessed since the Constitution of the Republic came into effect in 1994. Shaw says this is a conservative estimate. The applicants argue that this practice deprived homeowners of equity accumulated in their properties, and was in violation of constitutional protections against arbitrary deprivation of property. They want the court to order the banks to repay the difference between the market value and the auction price – and to pay interest on the difference from the date of auction. Repossession 'last resort' say the banks In their court filings the banks say they were complying with the applicable law at all times, and that home repossession is a last resort. All the banks cited as respondents argue that they engage customers in financial distress to assist them in getting back on their feet, for example through payment arrangements and loan restructuring. Only when there is no hope of recouping their mortgage loans do they approach the courts to repossess. ALSO READ: National Credit Regulator accused of siding with banks in R60 billion class action suit Repossession 'first resort' say others Lungelo Lethu Human Rights Foundation, the driving force behind the class action suit, says it's looking forward to challenging the claims from the banks, and that it possesses substantial case history to buttress its argument that home repossession is in many instances a first rather than last resort. Multiple cases, some of them heard in court this year, appear to support the foundation's arguments. This week a high court judge slammed Standard Bank for its 'disproportionate' attempt to foreclose on the home of trade federation leader Zwelinzima Vavi, even as he was consistently paying off the arrears on his home loan. Last week Absa was rebuked for attempting to attach a property as a way to recover R6.7 million when the judge found its accounting in disarray. There was also uncertainty about whether or not the client was in arrears at all. ALSO READ: Banks hit with class action suit over 'unlawful' home foreclosures Abusive practices Shaw says the Constitution, under a democratic government, has failed to enact necessary reforms governing the banks, particularly as research has shown that SA has some of the most abusive foreclosure practices in the world. 'This has been going on since before the Constitution even came in,' he adds. 'But you would think that when the Constitution came in, the banks would have stopped doing this and it affects more than 100 000 people in this country who we believe the banks have sold their properties for significantly less than they could have sold them for what they were worth. 'This is before we got the reserve price as some form of protection in 2017, but even today, with the reserve price, they sometimes sell them for 50% or 70% of their value,' says Shaw. ALSO READ: Smackdown for Standard Bank in home repo case 'Forced removals' Lungelo Lethu Human Rights Foundation president Nkululeko Xhelithole says banks are pursuing removals akin to those of apartheid, but this time under the guise of foreclosure. 'During apartheid, there were forced removals. We accepted that. We fought against that. Now, in today's era, forced removals are called evictions because people are still thrown away out of their houses. 'Our Constitution says if you evict a person, give them an alternative accommodation suitable for their needs. But it does not happen in our country,' he adds. 'The question we want answered is: Do the banks' commercial rights supersede our constitutional rights? We say no, they don't.' ALSO READ: Court rules in favour of clients in Standard Bank home loan dispute Auctioning properties for R1 000 Evidence to be presented in court shows banks auctioning properties for R1 000 when the market value was R200 000 to R440 000, and in one case R1.3 million. Much of this information was collated at the request of the NCR which, strangely, attempted to suppress public disclosure of this evidence, citing the disclosure prohibitions of the National Credit Act and the Protection of Personal Information Act. The NCR's efforts to conceal this information, even though names had been redacted, was defeated in the Gauteng High Court in 2022. This outraged consumer activists and the Lungelo Lethu Human Rights Foundation, who believe the NCR should have joined its case against the banks but chose not to. This article was republished from Moneyweb. Read the original here.
Daily Maverick
17-06-2025
- Business
- Daily Maverick
Court rejects Standard Bank's bid to foreclose on Zwelinzima Vavi's home over loan arrears
A High Court judge has slammed Standard Bank for its 'disproportionate' attempt to foreclose on the home of union leader Zwelinzima Vavi, even as he was consistently paying off the arrears on his home loan. The Johannesburg High Court has ruled against Standard Bank in its legal bid to foreclose on the upmarket Sandton home of South African Federation of Trade Unions general secretary Zwelinzima Vavi. The bank sought a money judgment and permission from the court to execute against Vavi's primary residence, because he and his wife had fallen behind on their home loan repayments. However, what is curious about Standard Bank's legal bid is that the arrears date back three years, and Vavi and his wife had not only kept up with their bond repayments but had also worked to reduce the arrears from R170,000 to R85,000. In handing down his judgment on Tuesday, Judge Stuart DJ Wilson rebuked the bank for seeking an execution order when the Vavis' repayment over the last 18 months showed 'an apparently perfect adherence to the Vavis' obligations to pay their monthly instalments'. 'Standard Bank has placed nothing before me that explains why execution against the Vavis' home is a proportionate means of recovering the arrears,' Judge Wilson said. The court, referencing the Constitutional Court's stance in Gundwana v Steko Development CC, emphasised that the value or location of a property does not diminish the need for proportionality when a bank seeks to take away someone's home. 'Cases in which it would be disproportionate to authorise execution of a proven mortgage debt against such a property are likely to be rare. This is such a case,' the judgment noted. What raised eyebrows was Standard Bank's demand for more than R160,000 in legal costs – almost double the outstanding arrears. The court found that the bank had effectively tied the settlement of the dispute to the payment of these costs, suggesting that the Vavis may have hesitated to pay legal fees that far exceeded their actual arrears. The broader problem Standard Bank's case against Vavi is not unique. Across South Africa, banks have been criticised for using aggressive tactics to address home loan arrears. These include: Initiating legal action for repossession even when homeowners are actively reducing their arrears; Imposing excessive legal costs that quickly outpace the actual debt; and Failing to engage meaningfully with customers before resorting to court action. In 2024, Judge Wilson came down on Standard Bank for using 'high-handed' tactics by taking a Meyersdal couple to court over home loan arrears on which they had managed to catch up a few months before the matter was set down to be heard. Earlier this year, the bank attempted to take the home of a Roodepoort homeowner who was attempting to catch up on arrears, but the case was dismissed with costs. If the court had granted Standard Bank's order against Vavi, it would have given the bank the power to foreclose on the house and potentially sell it at a fraction of its value to recoup the R85,000 that it is owed. This has happened to countless South Africans over the years. However, a R60-billion class-action suit against South Africa's leading banks – Standard Bank, Absa, FirstRand and Nedbank – is seeking to address this issue. Led by Advocate Douglas J Shaw, the lawsuit highlights systemic issues with how banks handle mortgage arrears. Despite a 2017/18 legal victory that forced banks to set reserve prices at sheriff auctions – preventing sales at rock-bottom prices – Shaw reports that many homes continue to be sold for only 50% to 70% of their true value, and in some cases as low as 10%. Former owners often remain liable for the outstanding bond balance while being left homeless and destitute for years. Shaw further alleges that banks frequently proceed with sales even when foreclosure is not a last resort, such as when homeowners have regained employment, can rent out their properties or could subdivide them to meet obligations. 'We often see banks act in a manner we consider irresponsible. You cannot trust them to do what most people would see as 'the right thing',' Shaw said. This ongoing class action underscores the concerns raised by the Vavi case – namely, that banks sometimes resort to heavy-handed enforcement tactics without adequately considering proportionality or alternative solutions. It also highlights the broader call for stricter regulation and more ethical conduct in mortgage enforcement practices across South Africa.
IOL News
24-05-2025
- Politics
- IOL News
Zwelinzima Vavi calls MK Party leader Jacob Zuma 'worst thing South Africa has ever experienced'
Secretary of the South African Federation of Trade Unions (SAFTU), Zwelinzima Vavi, believes that former President Jacob Zuma was the "worst thing South Africa has ever experienced". Former president Jacob Zuma was the "worst thing South Africa has ever experienced," general secretary of the South African Federation of Trade Unions (SAFTU), Zwelinzima Vavi, said. "In my view, Jacob Zuma was the worst thing that this country has ever experienced and I'm not saying this because of the expectations we had about what he was going to do for the working class in South Africa," he said. Vavi was speaking during an interview on the EFF Podcast on Thursday. The veteran trade union leader said Zuma was the worst thing the country has ever experienced. In response, MK Party National spokesperson Nhlamulo Ndhlela defended Zuma, labeling Vavi as "irrelevant" and accusing him of using the former president's name to maintain his own relevance. "Vavi is an irrelevant trying to be relevant using President Zuma's name," Ndhlela told IOL.
