• About
  • Our Team
  • Contact Us
Tuesday, March 28, 2023
Falcons
  • Home
  • The Cases
  • Insight
  • In the Press
No Result
View All Result
  • Home
  • The Cases
  • Insight
  • In the Press
No Result
View All Result
No Result
View All Result

Home » AYO battles FNB in court over discrimination

AYO battles FNB in court over discrimination

by Sizwe Dlamini
May 19, 2021
in Uncategorized
AYO battles FNB in court over discrimination

AYO Group chief executive Howard Plaatjes

READ ALSO

Ramaphosa may have to consider the prospects of donning orange overalls

If it makes cash but you have no clout, Rupert and co will muscle you out


Cape Town – JSE-listed AYO Technology Solutions has launched a court application on constitutional grounds against First National Bank (FNB) after the bank gave the technology firm notice to close its transactional banking facility from May 3, according to a Sens statement on Thursday.

The black-owned firm said that despite its best efforts, FNB had not provided them with what they regarded as valid reasons for termination.

“The company believes that it is entitled to fair treatment and as a result is in the process of instituting legal proceedings against FNB for its decision to close the company’s transactional banking facility.”

AYO does not have any lending facilities with FNB and is in the process of reviewing its options for transactional banking.

The tech firm issued a cautionary to shareholders: “As a result of FNB’s decision to close the company’s transactional banking facilities, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made.”

In its application for urgent interdictory relief, AYO raised the issue of FNB taking a unilateral decision to close the black-owned company’s bank accounts in the absence of good cause. AYO says it suspected that FNB’s decision was political and a new form of restricting black businesses from participating in the economy, in particular in the ICT sector.

AYO Group chief executive Howard Plaatjes argued in his court papers that the consequence of AYO not having transactional banking facilities in place would put significant limitations on the tech firm and would ultimately lead to it not being able to operate.

This would in turn result in the loss of jobs and a decline in socio-economic spend.

“As at the latest reporting period, 31 August 2020, the AYO Group employed more than 1 200 people. The total salary bill of the group exceeded R430 million annually and payment was made to the fiscus via taxation in excess of R495m, including R289m in VAT, R98m in income tax and R108m in PAYE,” said Plaatjes.

AYO said on Thursday that it considered the decision by FNB to be discriminatory, restrictive of trade and in violation of its constitutional rights.

The tech firm argued in its court papers that FNB is a banking institution and is governed by the Prudential Authority and public policy.

“AYO has never been found wanting in any respect other than the fact that it was one of the companies subjected to an inquiry at the Mpati Commission. No adverse findings were made against AYO at the Mpati Commission,” the company said.

AYO is challenging FNB in terms of Section 22 of the Constitution, freedom of trade occupation and profession; Section 23, the rights to fair labour practices; Section 25, the rights against arbitrary deprivation of property; and Section 9, the right to equality and non-discrimination.

“AYO is asking our courts to protect our rights in terms of the Constitution. AYO insists that its constitutional rights are binding on FNB and if necessary, the courts must develop the common law to the extent that legislation does not give effect to that right.

“AYO has conducted its banking affairs with the utmost integrity, with due regard to the Financial Intelligence Center Act. AYO regards FNB’s decision as causing irreparable harm to the business … its employees, customers, partners and to the fiscus as well as to transformation in the country,” the company said.

The financial sector plays a central role in enhancing a country’s economic growth and development. According to the Financial Services Charter, which came into effect in January 2004, the sector had not effectively provided credit to entrepreneurs, particularly black businesses and there had been an inadequate response by the sector to the increasing demand for access to financial services.

sizwe.dlamini@inl.co.za


Tags: News
ShareTweet

Related Posts

Ramaphosa may have to consider the prospects of donning orange overalls
Uncategorized

Ramaphosa may have to consider the prospects of donning orange overalls

June 20, 2022
If it makes cash but you have no clout, Rupert and co will muscle you out
Uncategorized

If it makes cash but you have no clout, Rupert and co will muscle you out

October 13, 2021
Does the DA hope to control Independent Media?
Uncategorized

Does the DA hope to control Independent Media?

May 18, 2021
Independent Media presents its case to SCoF, restates threat to media freedom
Uncategorized

Independent Media presents its case to SCoF, restates threat to media freedom

May 18, 2021
Oceana faces probe over BEE fraud claims
Uncategorized

Oceana faces probe over BEE fraud claims

May 18, 2021
SANEF’s role in Independent Media hostile takeover bid exposed
Uncategorized

SANEF’s role in Independent Media hostile takeover bid exposed

May 18, 2021
Next Post
Business owners armed to the teeth to protect their livelihood

Business owners armed to the teeth to protect their livelihood

EDITOR'S PICK

Is KZN the factory of hitmen?

Is KZN the factory of hitmen?

March 8, 2023
ANC KwaZulu-Natal displays political intolerance

ANC KwaZulu-Natal displays political intolerance

February 15, 2023
Nepad concerned about South Africa’s energy crisis

Nepad concerned about South Africa’s energy crisis

February 9, 2023
ANC’s 30-year rule marked by empty promises and rhetoric

ANC’s 30-year rule marked by empty promises and rhetoric

January 23, 2023

POPULAR NEWS

Presidency reveals progress made to curb energy crisis engulfing SA

Presidency reveals progress made to curb energy crisis engulfing SA

January 23, 2023
Cyril Ramaphosa broke the law – Phala Phala Farmgate report

Cyril Ramaphosa broke the law – Phala Phala Farmgate report

December 1, 2022
Bawa accused of obstructing the course of justice

Bawa accused of obstructing the course of justice

October 27, 2022
Banks’ failure to adhere to FATF guidelines poses a major risk for SA economy

Banks’ failure to adhere to FATF guidelines poses a major risk for SA economy

August 25, 2022
RIGHT OF REPLY: The IRR will not forsake its classical liberal values

RIGHT OF REPLY: The IRR will not forsake its classical liberal values

August 18, 2022

About

The Falcons mission is to provide quality in-depth reporting on matters that would otherwise not be covered by mainstream media, to equip the public with factual information that are hidden from the public eye so they can be able to demand accountability from the country’s leadership. – We speak truth to power.

Categories

  • banking
  • conflict, war and peace
  • corruption
  • crime, law and justice
  • economic sector
  • economy
  • economy, business and finance
  • financial and business service
  • government
  • In the Press
  • Insight
  • investments
  • law
  • macro economics
  • News
  • Opinion
  • Politics
  • The Cases
  • Uncategorized

Recent Posts

  • Is KZN the factory of hitmen?
  • ANC KwaZulu-Natal displays political intolerance
  • Nepad concerned about South Africa’s energy crisis
  • ANC’s 30-year rule marked by empty promises and rhetoric

Copyright © 2023 - All rights reserved

No Result
View All Result
  • Home
  • The Cases
  • Insight
  • In the Press
  • About
  • Our Team
  • Contact Us

Copyright © 2023 - All rights reserved