SOUTH AFRICA — First National Bank (FNB) has said it will look into its relationship with EOH holdings following a complaint by Transform RSA.
Transform RSA had made a criminal complaint against FNB claiming the bank continues to offer banking services to EOH Holdings even after the company had admitted to corruption within its organisations.
FNB has however said that it would evaluate the complaint after it receives more information and will respond through relevant channels where required.
It said, “As a reputable financial services provider, FNB endeavours to ensure that its bank accounts are utilised and managed in compliance with the relevant laws.”
Transform RSA president Adil Nchabeleng cited biasness in the way FNB and other South African banks treat corporations.
“FNB, in particular, is very biased. They have decided to close the accounts of companies owned by black businesses without (them) being found guilty of breaking the law, but they are leaving those companies that have admitted to wrongdoing. He said
“EOH has admitted to corruption that has taken place in the organisation, but they are allowed to operate and the banks are not threatening or closing their accounts.
They continue to access facilities and loans and continue to conduct business as if nothing has happened. Where is justice in that?” he questioned.
Nchabeleng said, last week they laid corruption and money laundering charges at the Johannesburg Central Police Station and investigations are ongoing.
EOH on its part says it has been transparent with all the banks and has cooperated with authorities.
The company has also hit back at Transform RSA by ordering banks to close its account for its role in the procurement of overpriced contracts for the Department of Defence.
EOH Chief Executive Stephen Van Coller has firmly defended the company saying, “It is in line with this commitment that EOH provided input to the Judicial Commission of Inquiry regarding identified irregularities.”
“It is also in line with this commitment that EOH reported concerns to the Directorate for Priority Crime Investigations and the Financial Intelligence Centre, prior to the group being approached by the Special Investigating Unit (SIU), and further initiated action in order to recover losses caused by perpetrators of wrongdoing,” he added.