EFF statement on Viceroy allegations of Capitec loan shark tendencies
1 February 2018
The EFF notes the damning report by Viceroy on Capitec and its loan shark activities and allegations. The EFF, despite the assurances of the South African Reserve Bank (SARB), believes there must be an inquiry into Capitec given the nature and seriousness of the allegation.
Not long ago, millions of workers suffered and paid the ultimate price when a bank under the supervision of the Reserve Bank collapsed through negligent, reckless practices and loan shark tendencies of management and board of directors. We cannot allow another situation whereby people, mainly workers and poor people as they make the majority of customers for Capitec, are exposed to negligent and reckless banking behaviour. Only to respond when the situation has deteriorated beyond measure.
The EFF has written to the Reserve Bank to demand a full inquiry into the Capitec conduct and will write to Standing Committee of Finance to demand that Capitec should be held accountable. A transparent and fair opportunity must be given to Viceroy and Capitec to present their account on the allegations.
Concerns and exposes over financial misconduct should always be listened to, especially after the costly and damaging experience of African Bank, the mounting evidence of corruption and irregularities of companies like Steinhoff, and lack of credibility of auditing companies and regulators after KMPG scandals.
Issued by Mbuyiseni Quintin Ndlozi, National Spokesperson, EFF, 1 February 2018
