By Sipho Tshabalala
In the escalating battle between financial institutions and the Sekunjalo Group, what we are witnessing is not just an economic dispute, but an assault on media freedom, livelihoods, and democracy itself. At the heart of this conflict lies the gross abuse of power by South Africa’s major banks, who have collectively moved to close the accounts of a black-owned conglomerate under a veil of "reputational risk." This coordinated effort smacks of predatory behaviour, where banks, like wolves circling their prey, are intent on delivering a final blow to a company that dares to challenge the status quo.
A Baseless Decision
The sheer lack of substance behind the banks' rationale is nothing short of infuriating. Despite citing "reputational risk" as the main reason for shutting down Sekunjalo's accounts, these institutions have failed to present any concrete evidence to support their claims. They point to media reports and the findings of the Mpati Commission, yet the Commission itself did not provide any definitive proof of wrongdoing. It merely called for further investigation, a fact that these banks have conveniently overlooked.
In a rare moment of judicial clarity, the Competition Tribunal noted that there is "no evidence that Sekunjalo has been found guilty of money laundering, financing terrorism, or any other unlawful activities." This renders the banks' decision to close the group's accounts not only arbitrary but deeply suspicious. It's almost as if the decision was made first, and the justification cobbled together later. These financial giants have relied on contract law to cover their tracks, confident that they could avoid scrutiny. But Sekunjalo has fought back, taking the matter to both the Equality Court and the Competition Commission, institutions designed to tackle racism and collusion. The banks, however, seem intent on delaying the proceedings, hoping to destroy Sekunjalo before these cases can even be heard.
The Racist Undertones
One cannot ignore the racial dynamics at play here. While Sekunjalo faces financial strangulation over vague accusations of reputational harm, white-owned corporations like EOH, Steinhoff, and Tongaat Hulett, all implicated in significant corruption scandals, continue to enjoy full banking services. These companies have been directly involved in fraudulent activities, yet they remain untouched by the same banks that are now targeting Sekunjalo. This inconsistency raises serious questions about racial bias within South Africa’s financial sector, and it is precisely this discrimination that Sekunjalo is challenging in the Equality Court.
The banks' actions speak to a deeper, systemic racism that has plagued South Africa’s economic landscape for decades. While the country may have left apartheid behind politically, the structures of white economic dominance remain intact, and they are now being wielded to exclude black-owned businesses from meaningful participation in the economy.
An Attack on Media Freedom
Perhaps the most disturbing aspect of this attack on Sekunjalo is the clear threat it poses to media independence. As the owner of *Independent Media*, Sekunjalo controls one of the few platforms willing to challenge dominant narratives and hold powerful entities accountable. By closing its bank accounts, the financial institutions are not just targeting a business; they are silencing a vital media voice in South Africa. Without access to banking services, *Independent Media*’s ability to pay its journalists, fund investigations, and provide critical coverage is severely compromised.
This action speaks to a larger, more sinister agenda. South African democracy and media freedom are in grave danger of being overthrown by banks acting under the instructions of powerful oligarchic families and political elites, determined to maintain their grip on the country’s economic and political systems. These financial institutions, aligned with oligarchic families and politicians, are weaponising their influence to stifle dissent, undermining the press's crucial role in holding the powerful accountable. If left unchecked, this collusion will choke off one of the last bastions of free press in the country, pushing South Africa closer to authoritarian control.
The Human Cost
Beyond the constitutional and moral implications, there is a devastating human toll to consider. Thousands of employees rely on Sekunjalo for their livelihoods. When banks act with such reckless abandon, they are not just harming a company—they are putting food on the table for families, paying rent, and ensuring children can go to school. In a fragile economy, the consequences of these actions are felt far beyond the boardroom. Entire communities are destabilized when people lose their jobs, and all of this is happening because a few faceless institutions have decided to pull the plug on a black-owned business.
The Dangerous Power of Banks
What the Sekunjalo case ultimately reveals is just how much unchecked power banks have amassed. These institutions, which should be serving the public and fostering economic growth, have instead become arbiters of who can and cannot participate in the economy. Their actions against Sekunjalo demonstrate a terrifying trend: banks are now capable of destroying businesses and livelihoods with the flick of a pen, all without having to provide a shred of real evidence to justify their decisions.
This is not just about Sekunjalo. It is about the broader implications for freedom, justice, and the very fabric of South African democracy. If banks can unilaterally decide to close the accounts of any business they find undesirable, what does that mean for the future of free enterprise? What does it say about our democracy when unelected, unaccountable financial institutions hold such immense power over our lives?
A Call to Action
The public must not remain silent. We must stand with Sekunjalo and demand that these banks be held accountable for their actions. This is not just a fight for one company—it is a fight for all of us who believe in justice, equality, and the right to operate freely within a democratic society. If we do not push back now, the banks will continue to wield their power unchecked, and the next target could be anyone who dares to challenge their dominance.
* Sipho Tshabalala is an independent writer, commentator and political analyst.
** The views expressed do not necessarily reflect the views of IOL or Independent Media.