FNB Discrimination Case: Delaying Tactics, Lies Exposed & Perjury Charges

By Pinky Khoabane


Marius Marais, CEO of FNB’s Home Loans & expert witness who lied under oath

First National Bank (FNB) has pulled yet another tactic in its attempt to delay the hearing into whether it discriminated against Black clients in its low cost mortgage book. In a class action in the Western Cape Equality Court, Magdalena Pietersen, Lukas Maarman and Soon Boesak, represent thousands of low cost housing bond holders – all Black and living in townships – who have accused FNB of charging them interest rates higher than those of their counterparts who hold high-cost home loans.

The bank is also accused of denying them the benefits of interest rate cuts. Furthermore, a large percentage of them were charged interest rates above the permissible amount in terms of the Usury Act. Liliandah Chokwe, for example, was charged 21.5% on her home loan at a time when banks were allowed to charge upto 14% interest and no more. This was a shocking 7.5% more than was allowed in terms of the law.

In it’s latest ploy, the bank has refused to acknowledge Emerald van Zyl as an expert witness for the complainants. The complainants’ attorneys have refused to sign the minute “that has now been substantially amended” following a pre-trial conference held recently.

FNB’s attorneys claim van Zyl is a business consultant who recalculates interest rates charged on clients and has no banking experience.

“After 23 years of successfully testifying in courts for hundreds of clients who had been overcharged by banks, FNB now tells me it cannot accept my witness report,” an exasperated van Zyl says.

Van Zyl is the financial investigating consultant who, in 1998, discovered that Saambou was charging its clients interest in advance in contravention of the Usury Act. What this meant was that clients were charged interest on the entire bond before they even used it. Then further interest was calculated at the end of each month. The net effect was that clients who were scheduled to repay their bond in 20 years found it was extended by another 10 years.

In 2005, FNB admitted to the dubious accounting practices of Saambou and moved to rectify the problem but a trio of forensic experts including Gregory Johnson, Dr David Klatzow and Van Zyl alleged that the amount FNB paid-out addressed only a fraction of the problem – just R154 million. Media reports at the time described van Zyl as a “long campaigner against the overcharges”. At the time, he was said to have stopped 164 sales in execution arising out of supposed arrears in the bond book FirstRand took over from Saambou. “Only two of the clients he has represented have been found to have been in arrears,” wrote.

“I do not need  banking experience as I apply the laws related to moneylending transactions. I also don’t need banking experience to uncover lies in their (FNB) internal documentation,” van Zyl explains.

FNB Caught Lying? Perjury? 

FNB has in previous court papers maintained that Saambou’s interest rates were not linked to prime which, van Zyl says is the bank’s way of giving the impression that it could charge whatever it wanted when in truth, there was a set rate beyond which banks couldn’t go. He uses a statement made by Saambou’s Chief Executive Officer Mr J.P. Myburg to illustrate the inconsistencies.

“In 1999, Myburgh confirmed that interest rates were linked to prime,” he says. An excerpt from a financial statement by Myburg in 1998/99 financially year, originally in Afrikaans, reads as follows: “The year started with the expectation of declining interest rates. The international liquidity crisis had a very serious effect on our interest rates and within 5 months the prime-rate increased from 18.25% to 25.5%. In addition, the interest rates on home loans did not move in line with the increase in prime rate as historically before. Only part of the increase was passed to our clients while the bank absorbed the rest”.

In another example of fabrications, FNB’s expert witness Marius Marais, who is also Chief Executive Officer of FNB Home Loans, in his expert witness report in paragraph 4.5 and under oath, wrote: “Saambou did not have an official basis rate.” This, van Zyl contends is part of the campaign to paint a picture of a bank which could charge as it wished and therefore give weight to why it charged low cost housing clients interest rates higher than permissible in terms of the Usury Act.

In internal documents circulated at Saambou at the time, Myburg confirms the existence of a basis rate.  In an internal publication Flintnuus, Myburg is quoted as saying (translation by van Zyl in papers in the Equality Case):  “Many thanks to all the branch managers for their input provided on Flitsnuus 18/92. Your contributions were helpful and appreciated. Differential interest rates are now part of our environment and those institutions who managed it the best, will benefit the most. We must therefore adapt to the new playing field”. In paragraph 5 of the same document, Myburgh continues: “The official Basis Rate is 19% per year for home loans”.

Van Zyl has lodged perjury charges against several FNB experts who lied under oath during his trial against the bank.

Background to Saambou/FNB Saga

First National Bank bought Saambou’s home loan book when the latter collapsed in 2002. Although FNB obtained the mortgage book of Saambou for R1 after the bank collapsed on 9 February 2002, it obtained the Low Cost Housing mortgage book by securitisation in 1998/1999. This was confirmed by the Curator of Saambou, Mr T.J. Louw, in his founding affidavit as follows: “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”.

Based on the statements of Low Cost Housing clients, it’s clear that FNB started to administer the Low Cost mortgage book from 2 February 1998. The main discrimination started in February 1999. FNB was therefore the proud owners of the Saambou mortgage book of Low Cost Housing when the discrimination started. It is therefore responsible for the discrimination and should refund every low cost housing client, because they collected the illegal interest.

In 2005, it acknowledged that Saambou had overcharged clients in interest rates and reimbursed some of them. Van Zyl however disputed FNB’s calculation – a matter which went to court and which he lost. He today represents thousands of Black clients who took-out home loans with Saambou on the eve of democracy and whose accounts were taken-over by FNB during the acquisition.

This latest delay forms part of FNB’s series of delaying tactics in the case. Late last year it queried the jurisdiction of the Western Cape Equality Court where the matter was to be heard in March this year. When that failed, it constantly failed to meet the deadlines for submission of the expert report. And when it finally produced the report, it happens to be a duplicate of what it already had six years ago.

The matter has been postponed to 28 August 2017. 

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  1. home because who is a.pensioner was.told.that pensioners.can’t.have home loans dad mom was to repay.the bond but allied bank told.her to.move so.they that was.nearly paid up


  3. when will this matter be concluded? we are waiting impatiently for the matter FNB must just pay people their money with interest as they gained and made a lot money from unsuspecting clients.

  4. Toward the end of 2015 I started receiving sms’s (with smiley faces to boot) from FNB requesting payment on my “Residual Loan Account”. Not knowing what this was all about and believing it to be a ruse, I simply deleted the messages – I never knew banks communicated in this way in any case. During the course of last year I started receiving phone calls from various “lawyers” demanding that I pay this “Residual” amount which then was somewhere in the region of R640, 000.00 to which I responded that I had no idea what they were talking about and how can they possibly conjure up this account more than 10 years AFTER auctioning the house off. I furthermore advised them and sent them an affidavit stating that I have no knowledge of this account and do not have the financial means at almost 60 years of age to suddenly be confronted with such a bill and demanding I repay it. I barely scrape through on the little bit I make every month caring for children.

    Now, to add further insult to my already dire situation regarding this “account”, I signed up with ClearScore to see my credit rating as I needed to make a loan of R2, 000.00 to purchase a second hand stove and to my utter shock and dismay your bank has BLACKLISTED me – really? This without my knowledge, consent, nothing!

    This is the information they have put on Experian which is absolutely unbelievable. I have no documents, nothing pertaining to this “account” except the sms’s sent that I duly deleted after telling them that I do not owe them money. This is the information I found on ClearScore ( you will note on ClearScore the following – You have no mortgages on your credit report)

    BALANCE : R910, 494
    OPENING BALANCE : R641, 763
    ACCOUNT NR : 4000023916403

    So, if I have not mortgages on my credit report, what in the world is this FNB account in aid of?

    Mr. Celliers the entire South Africa is aware that you are a man of integrity and your profile speaks volumes when it comes to fairness and honesty but can you please explain to me how fair and how just is this blatant abuse of power by FNB to blacken my name after all these years with no due cause or reason. I cannot afford to pay any accounts which is why I do not have a single account and now this – please assist in correcting this as a matter of urgency. I do not want to resort going public with this matter but I will do what it takes to clear this off my name and if for some crazy reason I do owe you this money then I am afraid there is no way that I have the means to pay it back, not at my age and not with my measly income.

  5. I have been a victim of that abuse, I was staying in Cape town, Summer greens, Milnerton. FNB repossed my house for nothing, owing R12,500 as a backlog, made unendlless request of consideration and also got people already to rent my place ,but FNB went ahead with taking my house. I was told to pay R7500 upfront ,coulld not manage that, then decided to use one lawyer to negotiate on my behalf ,however, in vain. The day of the auction they told me to pay R4000 and I did not have, they ended up taking my house.
    I was only left with 4years to finish the bond, FNB decided that I do not deserve an asset, they must rather give it to the known clients of them that bribe them.

    I am still heart broken over that because I fought and sacrificed for years trying to keep that house, but FNB wanted to take it from me even after making all the necessary efforts to talk to them.
    Even their lawyer saw the problem and advised me to take a defence lawyer,however that lawyer does not care whenever I used to phone him he will tell me he is busy.
    Corruption is a big thing within South Africa, this will be a happy ending if we could investigate my case.

    Thank you.

  6. Many people didn’t demand to paid they were happy to have learned that their loans have been repaid so they didn’t Persue the matter

    1. Somehow this matter must be pursued. Do you have contacts of people who are affected, let’s write stories and let’s see how the matter can be escalated.

  7. He didn’t say anything about Bell Portinger thing until we exposed it ourselves here in “Uncensored Opinion”
    Shame on you Ramaphosa. I can assure you that you are not to against NDZ. She is a very powerful woman who has been working for African People all along, but what did you do?
    Entrenched yourself as WMC beneficiary and supporter. REMEMBER MARIKANA. That’s exactly why they want to bring you in. So that they can blame the ANC for “MARIKANA MASSACRE” and bring in other WMC stooges like Julius Malema or MMUSI MAIMANE. As long as you work for WMC, you are not going to win my brother. Ask me. I am the Class of 76, I know Apartheid first hand.

    1. Dear Mzi

      The thing is Bell Pottinger was allowed to go on and appropriate our lived experience as their PR script. We here at UnCensored debunked this notion last week and I suddenly see so many voices coming out with the fact that Bell Pottinger couldn’t have written the script. We lead, they follow – Hahaha.
      I dont watch or listen to news. I hear Deputy Cyril Ramaphosa said something about Bell Pottinger. Can you please tell me what he said. This is quite urgent.



  8. Good people of South Africa, you see if this guy called Cereal Ramaphosa can get into power, then we are in trouble as black people. He is a “House Nigger” who works for the WMC.He even tried to justify the Bell Portinger by Joel Netshitenze.
    Remember they are from the same faction.
    Maqabane, we must not support this guy who is a liar and factionslist just like Joel Netshitenze.
    Joel Netshitenzed, check mate.

  9. There is sis Pinky …Absa who took over Allied claimed that some who took loans didn’t pay all the money they wanted to take their houses the community intervened only to find out loans have been repayed long ago instead it was the bank who owes people money

  10. Allied bank did the same with people who were loaned for building outside room in their yard…they are still paying even now after 26 years..just for 2rooms and a garage

  11. As one of the discriminated former Saambou & FNB bond-holder, suggest that the matter be forward to the Public Protector for investigation and fair judgement.

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