R699 car scheme owner sues WesBank for R20bn

2014-08-23 12:12

The owner of Satinsky 128, the company taken to court over the R699 car sales scheme, wants to sue WesBank for R20 billion.

Albert Venter claims WesBank allegedly disclosed confidential information of their financing scheme, breaking their confidential agreement, Beeld reported today.

WesBank was the only bank from the four big South African banks that did not get involved in the scheme. Standard Bank, Nedbank and Absa financed Satinsky cars.

Beeld reported that in July, WesBank CEO Chris de Kock said that there was concern about the company’s business plan, and that was why the bank did not get involved when approached. He said it showed characteristics of a Ponzi scheme.

In the letter delivered to WesBank on Thursday, Satinsky 128 claim that on September 18 2013, the bank disclosed confidential information to third parties. The names of the third parties where not mentioned.

In the letter, Venter’s lawyers claim that because of the disclosure, he lost R25 billion.

Beeld reported that it was information given to WesBank when Satinsky tried to get the bank involved.

The scheme offered to cut repayments on new cars to R699, if the motorists drove a minimum distance with pasted advertisements about the scheme on their cars.

The scheme collapsed in July and banks called for full repayments – amounts which were not affordable for those involved.

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