South African banks commit fraud to the tune of approximately 30 BILLION rand every month
For a long time now, many people have been talking about the stupendous scale of the fraud being committed by banks in South Africa and worldwide for that matter. At the heart of this matter is a process called “securitization”. I will try to explain this complex process as simply as possible.
After you take out your home loan, the bank takes it, along with loans from many other people, bundles them all together and calls it an SPV (special purpose vehicle). Not to be confused with an ATV (all terrain vehicle). These SPV’s then become available on the JSE (johannesburg stock exchange) where investors essentially purchase them. So in short, the bank is selling our debt, without our consent or knowledge, AND then still claiming a debt exists between you & the bank.
But the law is quite clear, if they sold that contract, they no longer have any legal standing in the matter. They can no longer claim that debt repayment.
What’s more, in terms of the law on securitization, the banks are not supposed to have any interest in these SPV’s. But “Special assignment” found evidence that one SPV is a “wholly owned subsidiary of SBSA” (standard bank of south africa). Check this…
A 34 year old journalist has single handedly exposed a deceitful scheme involving the major South African banks.
Peter Moyo from SABC3’s Special Assignment is a hero.
Maintaining journalistic integrity at all times, Peter and his camera man, Casher, flew around the country to examine every side of the story. The result:
THE NATIONAL CREDIT REGULATOR: HUMILIATED
THE SOUTH AFRICAN SECURITISATION FORUM: HUMILIATED
THE SOUTH AFRICAN RESERVE BANK: HUMILIATED
THE BANKS AND THEIR LAWYERS: EXPOSED!
A secret and devious scheme, called securitisation, is being run by the banks and their lawyers. They have illegally repossessed homes, cars and stolen our livelihoods. This kind of underhanded activity has placed this country in a serious economic crisis.
The combined intellect and resources of the South African legal system, and those government institutions specifically set up to monitor this kind of thing, achieved absolutely nothing. In fact, the banks and the Judiciary are actively trying to punish NewERA for bringing this evidence to their attention. [See here.]
Yet, in just one month, a lone journalist has researched, understood and exposed the cover-up.
The implications are wild. If the banks are not disclosing this scheme in their financial statements, then this may be so serious that it could involve criminal action against their directors. This is just the tip of the iceberg.
Peter Moyo, you are a testimony to South Africa. You are the kind of investigative journalist that freedom fighters twice your age fought so hard to cultivate. On behalf of the New Economic Rights Alliance, we congratulate and solute you.
A Complaint Rampage
We, the people, are supporting Peter by going on a complaint rampage. Complain to the NCR here. Demand a Commission of Enquiry from the minister here. Complain to the JSE here and expose the scheme to the FSB here. Demand transparency from your bank here and, finally, complain to the banking ombudsman here. Make your voice heard. The truth is out. Send this letter to the world.
…and, while you are about it, send a message to SABC3 here congratulating them and Peter for producing this story.
THE NEW ECONOMIC RIGHTS ALLIANCE
PS. For further research, see www.newera.org.za