Capitec rejects call for a second auditor
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JOHANNESBURG - Capitec bank has declined a call to take on a second auditor amid a highly publicised condemnatory report, which includes queries about the banks loan book and level impairments.
The report, released by investment research company, Viceroy, contains a highly critical 33-page document about Capitec bank knocking billions of rands off its market value. The scathing report, described the bank as a loan shark.
“We believe the SA Reserve Bank and minister of finance should immediately place Capitec into curatorship,” Viceroy's report read.
Speaking Exclusively to Business Report last week, Capitec Bank chief executive Gerrie Fourie, clarified the lender’s loan position as the National Treasury came to the defence of the under pressure bank and decried “the reckless manner” in which Viceroy Research had released its damning report on the bank.
Responding to Business Report queries on the lender’s loan position, Fourie said Capitec did not roll over any loans.
He was responding to the claim by Viceroy that Capitec’s “concealed problems” largely resembled those seen at beleaguered African Bank prior to its collapse in 2014.
In response to the Viceroy report, Deutsche Bank analyst Stefan Swanepoel, reportedly wrote in a note that, “Our sense is that an independent investigation is probably the best manner to deal with the issues raised and to address any concerns . Especially in light of the fact that Capitec has one set of auditors, while the other big banks have two. Although the auditors certainly haven’t covered themselves in glory in the past few months at least two sets of auditors bring independent benchmarks and a new set of eyes to the numbers.”
Fin24 reports that, Andre du Plessis, Capitec chief financial officer, in response to the call said: “We need only one auditor according to the Banks Act. Capitec uses PwC, which is a credible auditor. From previous experience I don’t believe dual auditors bring any more comfort or value.”
Speaking to Enca on Saturday, Viceroy founder Fraser Perring said he would be revealing more evidence, in what he said were "Capitec's dodgy dealings," during the next week.
"Since the publication of our report, the evidence has just got a bit louder and over the next five or six days you'll see that evidence coming out," Perring told the channel.
- BUSINESS REPORT ONLINE