Politically connected businessman Fana Hlongwane‚ whose bank accounts were closed after he underwent review as a politically exposed person in 2013‚ is suing Absa for R7-million on the grounds that the closure of his accounts was unlawful and that the bank had violated his constitutional rights.
Hlongwane‚ who was a key intermediary between foreign arms dealers and the government in the arms deal of 1999‚ came under scrutiny by the bank when he was named in documents presented to the Seriti commission of inquiry.
His court action comes in the midst of political opposition — not least from President Jacob Zuma — to tighter regulation by the banks of politically exposed people as spelled out in the Financial Intelligence Centre Amendment Bill. Zuma has declined to sign it into law.
The case also comes in the wake of intense lobbying of SA’s big four banks by the Gupta business family and their supporters in the ANC and the Cabinet after the family’s accounts were closed a year ago on suspicion of money laundering.
However‚ the Gupta family has never challenged the closure of its accounts in court‚ despite being advised to do so by several banking executives in response to its complaints.
In his application‚ filed last month in the High Court in Pretoria‚ Hlongwane says while he acknowledges the banks’ right to close accounts where criminal activity is suspected‚ this must be done in good faith and in line with the Constitution and the principle of ubuntu.
Full story in Business Day – TMG Digital/BusinessLIVE
Politically connected businessman Fana Hlongwane sues Absa for R7m
Politically connected businessman Fana Hlongwane‚ whose bank accounts were closed after he underwent review as a politically exposed person in 2013‚ is suing Absa for R7-million on the grounds that the closure of his accounts was unlawful and that the bank had violated his constitutional rights.
Hlongwane‚ who was a key intermediary between foreign arms dealers and the government in the arms deal of 1999‚ came under scrutiny by the bank when he was named in documents presented to the Seriti commission of inquiry.
His court action comes in the midst of political opposition — not least from President Jacob Zuma — to tighter regulation by the banks of politically exposed people as spelled out in the Financial Intelligence Centre Amendment Bill. Zuma has declined to sign it into law.
The case also comes in the wake of intense lobbying of SA’s big four banks by the Gupta business family and their supporters in the ANC and the Cabinet after the family’s accounts were closed a year ago on suspicion of money laundering.
However‚ the Gupta family has never challenged the closure of its accounts in court‚ despite being advised to do so by several banking executives in response to its complaints.
In his application‚ filed last month in the High Court in Pretoria‚ Hlongwane says while he acknowledges the banks’ right to close accounts where criminal activity is suspected‚ this must be done in good faith and in line with the Constitution and the principle of ubuntu.
Full story in Business Day – TMG Digital/BusinessLIVE
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos