South African banks are opposing legal action brought by the owner of defunct Executive Turbine Air Charter (ETA) seeking a declaratory order from the Gauteng Deputy Judge President to expose what he claims was racketeering and collusion amongst the banks that resulted in the liquidation of his ZAR600 million rand (USD32 million) debt-ridden business more than a decade ago, reports Independent Online (IOL).
Bret Lang alleges Nedbank, Standard Bank, ABSA, Wesbank, and Investec, misled him with the promise of a business turnaround but ultimately orchestrated his company's collapse. His financial troubles began when the South African rand strengthened against the US dollar in 2009, making it difficult to service debts and pay salaries. Lang alleges the banks held secret meetings and decided not to support his turnaround strategy, leading to the appointment of a business rescue agency and, ultimately, the liquidation of his company without his consent.
According to IOL, an inquiry into Lang's racketeering allegations was conducted in 2018 by attorney René Bekkers, now the Chief Operating Officer for the South African Restructuring and Insolvency Practitioners Association (SARIPA). Standard Bank opposed Bekker's findings, and the matter is currently under review by the Gauteng High Court.
A Standard Bank spokesman told IOL the bank did not collude with any other bank/s and that due process of law was followed at all times. He declined to comment further as the matter is subject to litigation.
ABSA also could not comment as the matter was sub judice, "save to say that the claims have no merit and will be vigorously opposed".
A Nedbank spokeswoman said Lang's claims had been ongoing for over a decade. "The matter has been comprehensively assessed by various regulatory bodies and courts. Nedbank maintains there is no merit to Mr Lang's claims and will continue to defend any action in the relevant courts."
According to ch-aviation fleets history data, Executive Turbine Air Charter went out of business in 2011. The company operated two ATR42-320s, one BAe 146-300, one DHC-6-200, and one DHC-6-300.
