Sekunjalo issues statement on Constitutional Court appeal outcome

The Court dismissed Sekunjalo’s appeal to prevent Nedbank from closing the accounts.

The Court dismissed Sekunjalo’s appeal to prevent Nedbank from closing the accounts.

Published Sep 5, 2024

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Sekunjalo is deeply disappointed that the Constitutional Court of South Africa (Concourt) did not hear the case we presented. In a briefly worded order, the Court dismissed our appeal to prevent Nedbank from closing our accounts, deeming it not worth their consideration.

We have always abided by the law and supported an independent judiciary, so it is disheartening that the courts have not provided protection in what is, at its core, a political and business campaign to undermine and dismantle the Sekunjalo Group.

Background to our Banking Litigation

Sekunjalo believes that apartheid oligarchs (families who amassed wealth during apartheid), apartheid-era media, and banking institutions, in collaboration with certain political factions, are determined to block legitimate Black entities from competing and participating in the broader economy. These groups seek to be the sole arbiters of the country’s political and economic future, and anyone outside their sphere of influence must be excluded from the economy.

Their tactics echo McCarthyism—smearing reputations and manufacturing consent through media surrogates. They use their regulatory allies to foster an environment that permits banking institutions to collude and close accounts under the guise of "reputational damage."

The South African Constitution and Bill of Rights—which Sekunjalo fully respects—guarantee the right to trade, media freedom, and protection against discrimination. As a group, we are the first corporation to challenge this form of bullying and political machination by apartheid-era oligarchs and political elites.

To defend our inalienable right to trade, we initiated legal proceedings against the banks to ensure our accounts remain open. While the main cases are still pending in the Equality and High Courts, we successfully interdicted the banks in the interim. Multiple judgments from the Cape High Court have been critical of the banks' conduct, as has the Competition Tribunal.

Despite this, Nedbank chose to appeal to the Supreme Court of Appeal (SCA), and somewhat unusually, the SCA allowed them to proceed. A bench composed entirely of white judges—deciding on a case fundamentally about discrimination—heard the matter and overturned the interdict preventing Nedbank from closing our accounts.

We subsequently appealed to the Concourt to reinstate the interdict, which they declined on the grounds of having no chance of success.

This Concourt decision violates the essential principles of equality and our right to trade. In the case of our media business, the closure of banking accounts is also an attack on media freedom.

Sekunjalo will now request the Concourt to revisit their decision.

Sekunjalo remains confident that the main cases in the Equality and High Courts (still to be heard) will be successful, resulting in significant claims for damages against the banks. However, this is little consolation to the thousands of Sekunjalo Group employees who now face potential retrenchment because of the Concourt’s decision.

Today marks a sad day in our young democracy.

Sekunjalo has consistently acted in good faith, with the best interests of our stakeholders—business partners, clients, employees, and shareholders—at heart. Our commitment to transformation, ethical business practices, social justice, and equality remains steadfast. We will continue to protect our rights and uphold these values.

Our cases address critical issues surrounding fair and equitable access to banking services for all South Africans. We will not relent in this fight and will consult with our stakeholders to determine the way forward.