Customers queue to draw money from an ATM outside a branch of South Africa's Capitec Bank in Johannesburg,South Africa, March 2, 2017.
JOHANNESBURG - Research group, Viceroy is putting a further noose on Capitec’s operations.
The controversial short seller says the Reserve Bank’s backing of the local lender is misinformed by cooked books.
Its new research called "A Rolling Loan Gathers no Loss", seeks to bring forward more evidence of Capitec’s alleged misconduct.
Viceroy says numerous former Capitec staff and five prominent debt counselling firms, support its version that Capitec is using suspicious methods to hide the disastrous underlying performance of its loan book.
The research group says an analysis of 10,000 of Capitec borrowers’ datasets within debt counselling firms, show consumers were able to get new loans after paying down their arrears the day prior.
Capitec was contacted for comment, but the bank referred eNCA to its previous communication on the initial Viceroy report.