It was a bad day in court for Capitec on Tuesday after Judge Bashier Vally ordered the bank to allow BEE shareholder Coral Lagoon Investments, ultimately owned by Gupta-linked Regiments Capital, to sell its shares and pay over the proceeds to the Transnet Second Defined Benefit Fund (TSDBF), reports Moneyweb.
Some of these names will be familiar to followers of state capture.
Coral Lagoon and the Transnet pension fund found themselves on the same side in the case against Capitec, but for entirely different reasons. The Transnet pension fund says it was a victim of state capture where Regiments “fleeced various arms of the state, state-owned enterprises and pension funds of employees employed by state-owned enterprises”.
Rather than fight the matter, Regiments and its shareholders decided to settle with the Transnet pension fund for R500 million, discounted from the original claim amount of R825 million.
Read more here on Accounting Weekly.