Uncertain Future for Sekunjalo Group as Court Ponders Standard Bank Account Closure

Independent Media, along with 30 other companies from the Sekunjalo Group, will soon learn if they can ward off the disaster looming over the planned termination of their business bank accounts by Standard Bank. This critical judgment is expected to be delivered on Friday by Judge Judith Cloete at the Western Cape High Court.

Earlier this week, the Group, chaired by notable entrepreneur and philanthropist Dr. Iqbal Survé, sought an urgent interim interdict against the bank’s proposed action, scheduled for September 15. The rationale offered by Standard Bank for intending to shut down the accounts is reputational risk, fueled by unfavorable press coverage by competing media houses.

The Group's legal counsel contested this move, arguing that it infringes on the companies' constitutional rights to freedom of speech and trade. Fears were expressed over potential mass unemployment that could be triggered by this action from Standard Bank, emphasizing the severe ramifications that reputational concerns could have on the Group's ability to operate and trade.

In response, Standard Bank's legal representative stated that despite the pending closure, the Group won't be left 'unbanked' as they continue to maintain functional banking relationships with Absa and Nedbank.

The representative, however, accused the applicant companies of failing to meet their Financial Intelligence Centre Act (FICA) obligations and highlighted concerns over their investment tactics, including certain "suspicious transactions".

Critical to this development is a recent court judgment that allowed South African banks to dissociate from the Sekunjalo companies. However, the Group's application to appeal this ruling has caused these banks to revisit their decision.

The fate of the GROUP now lies in the hands of the court, whose ruling is anticipated across South Africa's business and media landscapes.