Blacks “Ripped-Off” by FNB to subpoena Multi-Millionaire Paul Harris

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By Pinky Khoabane

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The complainants in the interest rates discrimination case against First National Bank (FNB) intend subpoenaing Paul Harris to testify in the Western Cape Equality Court when the financial giant answers to accusations that it cheated its low cost housing clients of interest rate cuts.  The multimillionaire banker is the founder of FNB and was at the helm at the time it took over the Saambou mortgage loan book.

In an article by Forbes Africa last year, he’s described as the $200 million pioneer who changed the way Africans bank. The article lauds his achievements as a man who built his fortune on “banking and bright ideas.” Nowhere in this glowing piece of the man does it mention one of his “bright ideas” which was the acquisition of Saambou Bank when it collapsed in 2002. As we mentioned here yesterday, FNB obtained the mortgage book of Saambou for R1 after the bank collapsed on 9 February 2002. However, it had already bought the Low Cost Housing mortgage book by securitisation in 1998/1999. 

Saambou illegally calculated interest in advance. The bank converted to the correct method in September 1999. With this conversion, Saambou lost one month of interest income, estimated at R 110 million. To recover this money, the bank penalised clients of low cost housing by increasing the interest rate on their mortgage loans. FNB had already acquired this book at the time when this discrimination was taking place. Saambou’s curator confirmed in an affidavit that by the time he was appointed in 2002, the ailing bank had already sold-off its mortgage book. Mr T.J. Louw, in his founding affidavit says: “On my date of appointment (9 Feb 2002) Saambou had directly or indirectly sold to other banks mortgage loans to a value of approximately R 2.6 billion, all of which are now held by FirstRand Bank Limited”.

It is not difficult to understand why Harris would want to conveniently forget this bright idea. His baby, FNB, which he founded, had to concede Saambou had cheated clients and had to reimburse them. His baby is now facing a class-action lawsuit in the Equality Court with accusations it had discriminated against low cost housing clients. In information discovered in the course of preparing for the trial, it was established that there were internal documents which clearly stated that the low-cost housing clients were not to be informed of interest rate fluctuations. This is against the Usury Act and is therefore unlawful.

Internal documentation reveal that in the 1998/1999 financial years the interest rate on low cost housing was to be increasesed with prime +1.25% and that of high cost housing to be increased by prime -.75%.
In July 2001 the rate of high cost housing was to be decreased by -.75% . Low cost housing was excluded from this decrease. The same happened in November 2001.

If Harris takes the stand, he will not only have to answer questions on a subject he’s tried everything to avoid but he will also have difficulty explaining the contradictory statements made by FNB’s expert witnesses in the trial against Emerald Van Zyl – the financial investigating consultant who blew the whistle on Saambou’s unlawful conduct of charging interest in advance. The experts had under oath, testified that because of the increase in the prime rate to 25% in 1998/1999 the bank had to pay their depositors a higher interest rate. This caused a financial squeeze on the bank financially, they said, which led to the increases of interest rates on mortgage loans. However, the 1999 and 2000 financial statements reveal  a 34% and 42.2% increase in earnings. If the bank had to increase the interest rate on mortgage loans due to financial problems, why was the interest rate only applicable increased on mortgage loans of low cost housing?

Harris will have to give the reasons why his bank overcharged Magdalena Pietersen by denying her interest rate cuts which were due to her. Her house which she bought in 1995, was only R61000. He will have to tell us why his bank couldn’t charge his fellow millionaires the higher interest rates to deal with whatever financial problems it was facing. Why target the poor? He will have to explain why this amount which she has paid over-and-above what she ought to have paid is not being reimbursed to her. The multimillionaire with great banking ideas will have to explain why the bank had at one time refunded Pietersen’s account by R80 000 after she raised the interest rate issue but swiftly reneged saying they made a mistake when she refused to accept the R80 000. Her calculation was at R108 000.

Harris will have to explain to the world if his bright ideas of changing the way Africa banks and his fortune were not really built on cheating Africans, in particular, the poor Black masses living in the sprawling townships of South Africa.

7 Comments on "Blacks “Ripped-Off” by FNB to subpoena Multi-Millionaire Paul Harris"

  1. Dear PK,

    Once again, on behalf of the People of South Africa : THANK YOU for your TIRELESS, Brilliant, Insightful Reporting. GOD will Richly Bless you dear – you can count on it. It says so in the Bible.

    1.
    Am I right PK – it looks to me that You are the only one in the media who still does support ‘poor old Emerald’ in his FIGHT FOR JUSTICE. His FIGHT for THOUSANDS of so-called ‘poor’ ‘blacks’, ‘coloured’ and Indian bank CLIENTS who have been DISCRIMINATED against (BY THEIR OWN BANK !!!!) because of ‘the colour of their skin’ AND to satisfy the Hate in the ‘hearts’ of RACISTS like “JR” Johann Rupert and his “friends”.

    Emerald is representing these THOUSANDS of ‘poor’ so-called ‘black’, ‘coloured’ and Indian CLIENTS of this RACIST bank.
    Emerald is the EXPERT for these THOUSANDS of First National bank CLIENTS in these 3 x Equality/‘Human Rights’ Courts in Cape Town, Gauteng, Tshwane.

    2.
    Face it PK – Legally, this is Cunning Deceitful THEFT. THEFT by this RACIST bank, from this RACIST bank’s very OWN CLIENTS – the so-called ‘poor’ ‘black’, ‘coloured’ and Indian CLIENTS of this RACIST bank – First National bank. Right.

    This RACIST bank which is owned by “JR” Johann Rupert with his “friends”; “friends” like “GT” Ferreira, “LL” Dippenaar, “PK” Harris (no relation of mine – SIS!), “Viv” Bartlett and others.

    3.
    Please PK continue to help Emerald to get this THEFT into Court in Cape Town, Gauteng and Tshwane – where the first about 10 of these THOUSANDS of Cases have been brought, and now lie, before 3 Judges.

    4.
    Once the EXPERT, Mr. Emerald van Zyl, speaks Truth in the first of the 3 x Cases in the Cape Equality High Court – as the EXPERT that he is.

    Once this Rupert Mafia Gang Member “PK” Harris (no relation of mine – SIS!) is IN THE BOX, representing this RACIST bank and his “friend” “JR” Johann Rupert etc – as THEIR ‘expert’ –

    You, PK, WILL SEE the “S… HIT THE FAN’ – PLEASE BELIEVE ME PK ! You will SEE it; the–whole-wide-World will SEE it ! To be sure ! We will ALL have to duck to avoid being hit by SO MUCH ‘FLYING S…’ PK. (LOL)

    Just continue to help Emerald to get this Rupert Mafia Gang Member, this “friend” of “JR” Johann Rupert – “PK” Harris (no relation of mine – SIS!) – IN THE BOX. PLEASE PK.

    5.
    You see PK, ‘The Die Is Cast’. This RACIST bank is about to ‘SHOOT IT’S OWN LIGHTS OUT’ – having already shot itself in the one foot, then shot itself in the other foot, by way of it’s Documents Discovered to the Cape Town Equality High Court Judge. Praise the GOOD Lord JESUS.

    This RACIST bank has been FORCED by Emerald to submit it’s Report – as it’s EXPERT EVIDENCE.

    6.
    All that is left is to put “PK” Harris (no relation of mine – SIS!) IN THE BOX.

    This Rupert Mafia Gang Member, this “friend” of “JR” Johan Rupert – this CEO at the outset of the original Fraud and THEFT, after the acquiring of the Low Cost Housing mortgage book by securitasation in 1998/1999 between Saambou and this RACIST bank FNb – this ‘man’ “PK” Harris (no relation of mine – SIS!); this multi-Rand BILLIONAIRE; this Director in FRL and in REMGRO; this Shareholder with a MASSIVE ‘block’ of shares in the Public Companies that own this RACIST bank i. e. FirstRand Limited/FirstRand bank Limited/Fist National bank; REMGRO.

    PUT THIS ‘man’ INTO THE BOX – to explain the Report, as the ‘expert’ CROOK CHEAT and THIEF for this RACIST bank that he is.

    PLEASE PK continue to help Emerald to achieve this.

    “PK” Harris IN THE BOX as the EXPERT CROOK CHEAT and THIEF that he is.

    PK please keep up your Great Reporting on this THEFT by this bank First National bank; by these Public Companies – FirstRand Limited and REMGRO.

    Lord Bless, love Michael (heart).

    P. S. PK, are you and Emerald going to also insist on Criminal Charges being pursued by the South African Police Services ? If you are, then please don’t forget the about 31 Police Cases that I have laid. They ALL include this man, this Rupert Mafia Gang Member “PK” Harris AND they include “JR” Johann Rupert; “GT” Ferreira; “LL” Dippenaar’ “Viv” Bartlett and the other Directors of REMGRO, FirstRand Limited, FirstRand bank Limited.

    LET ME KNOW YOUR DECISION PK and Emerald. OK. (LOL).

  2. You had me mezmerised till that last line…”the poor Black masses living in the sprawling townships of South Africa.”
    Why reference colour in this? What about the poor Indians? The poor Colourds… the poor Whites? Or does the reference to poor Blacks in Townships give your article more weight? Its thinking like this that will ensure racism thrive for generations to come. I urge you to do introspection at the very least, and at best, amend the article.

    • Pinky Khoabane | May 26, 2017 at 11:26 am | Reply

      Dear JC

      Blacks is a racial classification for Africans, Indians, Coloureds. There are no whites ripped off by FNB in this story.

      Read carefully – to understand and not to swiftly respond.

      I stand by this story. Paul Harris and FNB ripped off poor Blacks living in the sprawling townships of South Africa. They could have chosen whites or the affluent, they didn’t. They chose Blacks. Live with it.

      Kindest

      Pinky Khoabane

  3. Oh yes, PK, Emerald, something else :

    I have told you this before. I believe it is worth mentioning again :

    1.

    Between the years 2001 and 2012 I attended at FirstRand Limited AGM’s. I was then ASSAULTED before I even entered the AGM and it was made clear to me …. STAY AWAY OR ELSE …. When I attended at the next AGM in 2013 the bank had the Police there to not allow me to even enter the property. In this way this bank ‘got rid of me’. I am a shareholder, but I am not allowed to attend at the AGM of this Public Company.

    2.

    The same thing happened with REMGRO. I went to Cape Town to attended as a shareholder. I was removed by “JR” Johann Rupet’s ‘goons’. I was told that I must not come back to the next AGM because I will be stopped from even entering the property. Yet I am a shareholder in REMGRO.

    3.

    BUT. what IS SIGNIFICANT is this : Every year from 2001 to 2013, including in 2012 when I was ASSAULTED, and including 2013 when I was kept out by the Police, I TABLED INTO THE PERMANT RECORDS OF THIS PUBLIC COMPANY affidavits and copies of the Police Cases which I had opened.

    I also tabled affidavits and Police Cases into the permanent Records of REMGRO.

    3.1

    I did this so that at a future date these Records will be used to Prosecute these CROOKS CHEATS THIEVES because it goes to PROVE that the Directors, the Shareholders, the Auditors KNEW of the Fraud, including the Fraud in the case of the THOUSANDS of bank CLIENTS that are being represented by you PK and by you Emerald.

    Lord Bless, love Michael (heart).

  4. “ Dear Mr. Harris. The poor black clients in South Africa who were ripped-off by FNB will sponsor your train ticket and accommodation when you attend the trial in the Equality Court in the Cape Town. We will also arrange 200 people to welcome you when you arrive at court”

    Regards

  5. Dear Mr. M.S. Mmutlana,

    I am sure you are making this Generous Offer to Mr. “PK” Harris (no relation of mine – SIS!). Right. He was the CEO of this RACIST bank FNb. Let me assure you Mr. Mmutlana, when Mr. Emerald van Zyl and PK get this ‘man’ into Court you will be PLEASANTLY SURPRISED. I can assure you Sir.

    1.

    Mr. “PK” Harris (no relation of mine – SIS!) does not like to be in Court – IN THE BOX ….

    (too much Fraud and Theft going on in his bank affairs you see – also the CASH from his Hotel/s and his Art Gallery/ies you see .. ).

    It sure is well worth the cost of his train ticket to put “PK” Harris (no relation of mine – SIS!) IN THE BOX Mr. Mmutlana.

    2.

    However your further offer : “ We will also arrange 200 people to welcome you when you arrive at court ” will, I am afraid, “ SCARE THE PANTS OFF HIM ” hey (lol).

    3.

    Yes, Mr. Mmutlana, “PK” Harris (no relation of mine – SIS!) is certainly the Right person to come to the Equality Court in Cape Town to FACE Emerald and PK and the Welcoming Party of 200.

    (Can I ask you Mr. Mmutlana – is it at all possible to have say 500 People instead of just 200; I really want to see this ‘man’ with his pants ‘scared off’ (lol) ….

    and, is it at all possible to invite BLF representatives Zanele Lwana (National Spokesperson) Cell: +27 79 986 7225; Lindsay Maasdorp (National Spokesperson) Cell: +27 79 915 2957; Brian Tloubatla (Deputy National Spokesperson) Cell: +27 82 216 7664 to be in the Welcoming Party of, say 500 ? Just asking (lol).)

    4.

    It will be AMAZING if you can work with Emerald and PK Mr. Mmutlana, to get this ‘man’ “PK” Harris (no relation of mine – SIS!) ‘face to face’ with Emerald; to answer some nice questions that Emerald and his Attorney have for him.

    5.

    He was, after all, the CEO at the onset of this Fraud – this DISCRIMINATION based on RACISM – against the ‘sign here’ People; against the so-called ‘simple’ People i. e. they who were easy, it was simple to CROOK CHEAT THIEVE from them; against the so-called ‘black’ ‘coloured’ and Indian bank CLIENTS that have been systematically RIPPEED OFF, CROOKED CHEATED THIEVED from by this Multi Rand BILLIONAIRE, this Afrikaner Nationalist Mafia Gang LEADER Mr. “JR” Johann Rupert – with his “friends” like “GT” Ferreira “LL” Dippenaar “PK” Harris (no relation of mine – SIS!), “Viv” Bartlett and the others.

    6.

    Yes, “these people” – these CROOK CHEAT THIEVES – have ‘structure’, and have put in place, Public Companies like – REMGRO, FirstRand Limited, FirstRand bank Limited; First National bank (and other Companies) to make for themselves Rand BILLIONS – much of which they have actually STOLEN from their very own so-called ‘poor’ ‘black’ ‘coloured’ and Indian bank CLIENTS. Right. It is SHAMEFUL Mr. Mmutlana

    7.

    I Hope; I Pray, that this ‘man’ will accept your Generous Offer Mr. Mmutlana. If he does I am prepared to ‘chip in’ R 200-00 of my own money. Let me know Mr. Mmutlana (lol).

    Lord Bless, love Michael (heart).

  6. PK,

    Sorry : CORRECTION !

    When I posted earlier : ” “PK” Harris (no relation of mine. Sis!) is a Rand BILLIONAIRE, not a Millionaire, a BILLIONAIRE. Right. ”

    I was Wrong, you were Right PK.

    I looked it up : He is only worth about 300 to 400 Million Rand. Shame ‘ag sise tog’ hey.

    Lord Bless, love Michael (heart).

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