South African banking group Standard Bank has responded to allegations of fraud and intimidation, which have gone viral on social media.
The allegations, posted on several social media platforms, are that Standard Bank authorised criminal activity, including fraud.
One of the videos alleges that the bank hired gunmen to intimidate a client and their family.
According to Standard Bank, the matter relates to a historic vehicle finance matter concluded in 2018, surrounding a valid and enforceable financing agreement to purchase a Ferrari.
The video “makes serious allegations of impropriety against our institution and further alleges criminal conduct by Standard Bank and its representatives,” it said.
“The suggestion that Standard Bank and its representatives have engaged in or authorised criminal activity, including fraud, is false and baseless.”
The bank noted that its operations are governed by robust internal controls, regulatory oversight and strict adherence to legal and ethical standards.
It said that, in the ordinary course of its collection processes, it engages with debtors to explore various mechanisms to settle debts.
In this particular case, “and after lengthy engagements”, the client voluntarily agreed to settle the debt owed to the bank.
They “paid the agreed amount, and Standard Bank, therefore, did not ultimately repossess the vehicle that was the subject matter of the agreement,” it said.
The bank said that at no point did it or its representatives engage in any acts of violence or intimidation towards the client or their family members.
Standard Bank said that, while it respects the rights of the individual to express their views against its business, practices and processes, “it is regrettable and irresponsible” for people to publish false
information.
Explaining the situation in more detail, the bank said that the client and a Trust issued a summons against the bank and its CEO, Sim Tshabalala, more than 21 months after the settlement was reached.
“This summons was served as far back as 2020. After Standard Bank’s defence was filed, for more than 5 years, [the litigants] have not taken any steps to progress their alleged claims.”
The bank said that the summons issued in 2020 also does not contain the bulk of the allegations now being spread in the videos.
“The reason for this is obvious. If there was any truth to the allegations…they would have been made at the time the summons in 2020 was delivered, and they would have taken steps to have the alleged claims determined. They have not done so,” it said.
Standard Bank denied that it conceded in court that a fraud had been perpetrated. This, too, was not alleged in the 2020 summons, it added.
The bank said it would “vigorously defend the reputation of the bank and its leadership against malicious falsehoods”.
