Sekunjalo Investment Holdings, founded by entrepreneur Iqbal Survé, is set to appeal to the Constitutional Court to overturn the recent decision by the Supreme Court of Appeal (SCA).
The SCA ruled that Nedbank was within its rights to terminate accounts held by companies in the Sekunjalo stable, overturning an interdict granted by the Equality Court in 2022.
Survé and Sekunjalo had argued in the equality court that Nedbank’s decision to close the accounts amounted to unfair racial discrimination. However, the SCA, in a unanimous decision, found that Nedbank had the right to give notice to shut the accounts and dismissed the racism allegations, stating that they were not established based on the evidence presented.
Sekunjalo expressed disappointment with the SCA ruling and announced its intention to persist with the racism allegations in its appeal to the Constitutional Court.
The company questioned the composition of the SCA panel, which it claimed consisted of “five white judges.”
In a statement, Sekunjalo voiced hope that the Constitutional Court would consider the alleged discrimination against the company. The statement also reiterated the belief that banks are targeting Sekunjalo to hinder black businesses from rightfully participating in the economy, maintaining a status quo where white-owned companies dominate.
Sekunjalo’s racism allegations were based on the assertion that it was treated differently because it was black-owned, while other companies like Steinhoff, EOH, and Tongaat Hulett were treated leniently even after allegations of fraud were proven true.
However, the SCA judges found no evidence to support claims of racial bias by Nedbank.
The Constitutional Court case is critical for Sekunjalo and Survé, as a defeat would result in the closure of their accounts by Nedbank, making it extremely challenging for the group to conduct transactions and carry out business operations.