Capitec Bank Holdings was unaware that a transaction to increase the proportion of the company owned by black South Africans might have benefited the ANC after the Mail & Guardian said the deal was tied to members and funders of the ruling party, it said on Friday.
“We were unaware of the possibility that the ANC could benefit from the transaction,” the bank’s financial director, Andre du Plessis, said in a response sent to the Mail & Guardian newspaper and to Bloomberg.
“We believe it is wrong for the ANC, as a political party, to participate in a black economic empowerment deal,” it said.
Capitec, the best-performing share on the JSE over the last five years, entered into a so-called empowerment deal in 2006, selling shares to black investors as part of a national initiative to make up for discrimination during apartheid, according to a statement issued via the JSE that year.
Coral Lagoon Investments 194, mostly funded by the state-owned Industrial Development Corporation, bought 10 million shares, giving it 12 percent of the Stellenbosch-based provider of unsecured loans to poor people, according to the statement.