Thu, 06 May 2021

FNB has decided to sack Iqbal Surve-linked IT company AYO Technology Solutions as a client from 3 May.

AYO announced its account's closure in a cautionary announcement published on the Stock Exchange News Services on Thursday evening.

The company said it was notified about the pending closure of its transactional banking facility without any "valid" explanation and therefore it had decided to take up a legal fight with FNB.

"Despite the company's best efforts, FNB has not provided AYO with what it regards as valid reasons for termination.

"The company believes that it is entitled to fair treatment, and as a result, the company has instituted legal proceedings against FNB for its decision to close the company's transactional banking facility," read the announcement. AYO said it does not have any credit accounts with FNB and was in the process of looking for other options for its transactional banking needs.

FNB is the second of SA's big commercial banks to close accounts linked to Surve's businesses. Last month, amaBhungane reported that Absa had severed all ties with companies directly or indirectly controlled by Sekunjalo Investment Holdings eight months ago.

Absa closed all banking facilities linked to Surve's African Equity Empowerment Investments (AEEI), its AYO, and Premier Fishing & Brands. Only Independent Media appeared unaffected, Fin24 previously reported.

Source: News24

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