Court lashes out at Capitec

Capitec had tried to block Regiments from selling its Capitec shares, which was held through a subsidiary, to Transnet pensioners. Courtesy #DStv403

JOHANNESBURG - Capitec Bank would rather do business with a dishonest shareholder than lose its triple BEE rating.

That’s according to the South Gauteng High Court.

The banker had tried to block Regiments from selling its Capitec shares, which was held through a subsidiary, to Transnet pensioners.

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The money raised was meant to reimburse Transnet's pension fund for a transaction linked to the Gupta family.

Capitec now has two days to grant the transaction.

The banking group argued the shares should only be sold to a qualifying black person and the Transnet pensioners are white.

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“Capitec is willing to keep Regiments as a shareholder even though it recognises that Regiments has stolen more than one billion from indigent pensioners belonging to the fund," said Judge Bashier Vally.

"The logical conclusion of this position is, is its loss of 0.7-percent BEE rating is so important that it rather keep links with a shareholder that’s tainted with dishonesty than reduce the rating,” said.

Source
eNCA