Category: Sequestration

What is Sequestration?

In law, sequestration is the act of removing, separating, or seizing anything from the possession of its owner under process of law for the benefit of creditors or the state.

Calls grow for class action law suits against banks over securitisation

Disgruntled bank customers are calling for a class action suit against the banks after new evidence suggests banks are concealing their securitisation activities from customers, the courts and investors, in what could turn out to be the largest banking fraud in South African history. 

Scores of South Africans have added their voices to the growing clamour for a class action suit against the banks in response to what may turn out to be the biggest fraud in South African history. This follows publication of research coordinated by Advocate Douglas Shaw suggesting that banks are securitising home loans but hiding this fact from the courts when seeking judgment against customers allegedly in default.

Securitisation is the banks’ practice of bundling loans together and on-selling them investors who buy and sell these assets on the JSE and other stock markets. Once a loan is securitised, the bank loses legal title to the loan.

www.acts.co.za/news/blog/2015/03/calls-grow-for-class-action-suits-against-banks-over-securitisation

Busted! Joburg man catches Standard Bank out over mortgage loan securitisation denial

Standard Bank involved in securitisation
Standard Bank involved in securitisation

Sometimes the banks just can’t get it right. Here’s a case where Standard Bank’s legal department flatly denied a customer’s mortgage loan had been securitised, while another department in the same bank sent proof that the loan had in fact been sold to an entirely different legal entity.

Busted. That’s what happens when the left hand doesn’t know what the right hand is doing.

What makes this case even more interesting is that the customer, Jack Darier of Parkhurst in Johannesburg, does not have a judgment against his name, nor is his house under threat of being repossessed. He just wanted to know if his home loan had been securitised – in other words, on-sold by the bank to a new owner. That means the bank no longer has legal standing to bring action against the customer in the event of default. You can see below how the banks get around this – it’s a simple cession, they argue successfully in our brain dead courts.

www.acts.co.za/news/blog/2015/11/busted-joburg-man-catches-standard-bank-out-over-securitisation-denial

Securitization – Ostrich farmer from Eastern Cape shows court his mortgage loan is now in Taiwan

Ash Davenport, a 63 year-old ostrich farmer from outside Grahamstown in the Eastern Cape, may be about to make history in his effort to stave off attempts by Standard Bank to take possession of his 3,260ha farm over a R3 million loan he took out seven years ago.

Last week he threw the Grahamstown High Court into a spin when his attorney, Bev Carruthers of Port Elizabeth, plonked a securitisation audit in front of the judge. The securitisation audit suggests that his bank loan has been on-sold to a Taiwanese bank and is no longer owned by Standard Bank. That being the case, Standard Bank has no right to be in court. More than that, the audit suggests the bank has securitised (or on-sold) his bond for R5 million, not the R3 million he supposedly signed for.

The court reserved judgment as to whether to allow the audit to be presented as new evidence in a case that has been dragging on for close to seven years.

“I intend to fight this all the way,” says Davenport. “These banks have been getting away with this nonsense for too long. I had to pay R17,000 for the audit but it was worth it, since it provides proof that the bank has in fact been securitising mortgage loans and then coming after property owners when they have no right to.”

Securitisation audits are a new development in South Africa, but are common in the US. They effectively carry the same weight as a financial opinion by a company’s auditor, though the banks are trying to dismiss them as hearsay.

news.acts.co.za/blog/2015/06/ostrich-farmer-from-eastern-cape-shows-court-his-

mortgage-loan-is-now-in-taiwan

Suid Afrikaanse Bankbase vir miljoene gedagvaar

Mnr. Piet Liebenberg, voorheen voorsitter van Die Sakebank en mnr. Willem Boshoff, voorheen uitvoerende hoof van die bank, is die afgelope week in twee hofgedinge weens die beweerde bedrieglike of roekelose hantering van sake by Die Sakebank gedagvaar.

Die eise deur twee PSG-filiale, Axiam en Capitec, bedra R147 miljoen plus rente.

Verdere dagvaardings teen bekende sakelui, wat ook na bewering betrokke was, word nog voorberei.

Liebenberg en Boshoff het Die Sakebank op die been gebring met die slagspreuk “goeie etiek is goeie sake”.

Toe die bank in 1998 genoteer is, was daar ‘n stormloop om sy aandele te bekom, glo vanweë Liebenberg se groot aansien onder beleggers.

Liebenberg is ook ‘n bekende in kerkkringe en het in 1999 op die nasionale kerkeberaad gesê sakeleiers het “Bill Clintons” geword deur weg te draai van die basiese waardes van die Bybel .

Die Sakebank het vir die jaar tot einde Maart 1999 ‘n wins van R45 miljoen getoon met aandeelhouersgeld van R474 miljoen.

Die PSG-groep het Die Sakebank in 2000 oorgeneem. Kort daarná is bevind dat die sake van Die Sakebank “chaoties” was. Pleks daarvan dat die verwagte netto batewaarde R150 miljoen bedra het, was die maatskappy niks werd nie.

Die aandeelprys was in dié stadium 5c teenoor sy hoogtepunt van R17,00.

Mnr. Alec Erwin, minister van handel en nywerheid, het mnre. Mervyn King en Harvey Wainer verlede jaar opdrag gegee om ondersoek in te stel na verskeie moontlike ongerymdhede by Die Sakebank wat tot sy mislukking kon gelei het. Destyds is gesê daar sal na die finansiering van aandele-opsies vir direkteure en Die Sakebank se betrokkenheid by die mislukte Macmed gekyk word. Ander mense wat destyds in verband met die ondersoek genoem is, sluit in mnr. Desmond Smith, gewese uitvoerende hoof van Sanlam en waarnemende voorsitter van Die Sakebank se ouditkomitee, asook ‘n lid van sy vergoedingskomitee, en dr. Malesela Motlatla en mnr. Leonard Fine, albei lede van die oudit- en vergoedingskomitee.

‘n Verslag is voltooi, maar dit is nog nie bekend gemaak nie.

Die Sakebank is sedert 1998 tot TBBH, Axiam en toe Capitec Bank herdoop.

In die eerste saak teen Liebenberg en Boshoff beweer Axiam dat Liebenberg en Boshoff in 1998 en 1999 hul pligte wederregtelik verontagsaam het deur lenings van R60 miljoen aan mnr. Jan Louw toe te staan. Die lenings is na bewering nie terugbetaal nie.

Louw was die stigter en baas van ProEquity, ‘n batebestuurder, wat betrokke was by die aanvanklike mislukte hotelprojek by Oudekraal in die Kaap.
Die Sakebank het ProEquity oorgeneem en Louw het ‘n direkteur van Die Sakebank geword. Sedertdien is ‘n vonnis van R160 miljoen teen Louw verkry.

In die tweede saak beweer Capitec dat Liebenberg en Boshoff, as direkteure van Capitec Bank, in 1999 bedrieglik of roekeloos opgetree het deurdat hulle toegelaat het dat sekere aandele as sekuriteit vir ‘n gerief van R50 miljoen van Absa Bank dien, wetende dat dié aandele onderhewig was aan ‘n ooreenkoms wat dit verbied.

Capitec beweer dat mnr. Richard Foyn, ‘n direkteur van Capitec Bank, die gerief met Absa beding en die aandele aan Absa oorgedra het. Foyn is ook ‘n verweerder in die tweede saak.

Voordat hy Die Sakebank gestig het, het Liebenberg verskeie poste in die bankwese beklee.

cvonkeys@naspers.com

www.rapport.co.za/XArchive/Sake-Rapport/Bankbase-vir-miljoene-gedagvaar-20021019

Voluntary Sequestration Process South Africa

Sequestration is a legal process by which you are declared insolvent by an Order in the High Court in terms whereof certain of your assets are handed over to a trustee, after which a Trustee (appointed by the Master of the High court) must according to the rules of the Insolvency Act, sell your assets. The proceeds of the sale of your assets are divided amongst creditors in a manner which is prescribed in the Insolvency Act.

www.daniepotgieterattorneys.co.za/services/sequestration

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