Equality Court Bars Standard Bank from Closing Independent Media's Accounts

In a development seen as a significant win for media freedom and job security for employees of Sekunjalo-related companies, the Western Cape High Court's Equality Court has issued a temporary injunction against Standard Bank's move to close the bank accounts of these businesses, notably Independent Media.

Justice Judith Cloete ruled that Standard Bank is forbidden from closing the applicants’ banking accounts as stated in its termination notices dated April, July, and again in late July 2022, until at least 11 September 2024, or until the final verdict of the applications lodged in the High Court or Equality Court.

She noted that the Sekunjalo Group's primary argument lies in Sections 22 and 34 of the Constitution, emphasizing the necessity of their continued banking operation. The Group reportedly argued that refusing the interdict would essentially dismiss these rights and allow Standard Bank an opportunity for self-help.

Central to this case was the Sekunjalo Group's request to the Equality Court for an interim injunction against Standard Bank, after the bank intended to terminate its bank accounts, citing "reputational risk" and compliance issues with the Financial Intelligence Centre Act (FICA). The termination threatened the livelihoods of the company's employees.

Reacting to the ruling, Dr. Iqbal Survé, Chairman of Independent Media and the Sekunjalo Group, welcomed the judgement as a victory for justice, rule of law, and a warning to banks against unilateral account termination.

For their part, Standard Bank stated that although they are reviewing the judgement, the findings do not challenge the merits of their decision to severe their financial relationship with the Sekunjalo Group.

The case has opened fierce debate about the legality and repercussions of banks unilaterally deciding to close business accounts, with unions and industry insiders closely monitoring the efforts of Standard Bank.