URGENT ENQUIRY TO THE OMBUDSMAN FOR BANKING SERVICES
RE: Securitisation of so-called home loans and other bank loans
30 January 2013
Dear Mr Conradie
I represent the UBUNTU Party, a new political party duly registered with the IEC. Our responsibility is to report accurately on various issues that affect the lives and wellbeing of our members and the people of South Africa.
In 2011, the Ombudsman for Banking Services was formally advised that securitisation was a serious issue that needed to be addressed. This included the following:
a. Securitisation could cause severe financial harm and have a detrimental effect to the South African economy, similar to the effects suffered globally in the 2008 crash in the United States and Europe.
b. Knowledge of securitisation could assist people with a legal defence that could help save their properties and in many case their livelihoods.
Since the OBS is an independent dispute resolution body it must have a set of guidelines and regulation that govern the banking industry, and therefore must have an official stance on lawful and unlawful activity by the banks. The UBUNTU Party urgently requests the official position of the OBS regarding the following:
1. What is the official stance of the OBS regarding the matter of securitization.
2. Is the act of securitisation accepted by OBS as a lawful activity by the banks in their contractual obligation to customers who enter “loan agreements” with banks?
3. What is the official stance of the OBS on the legal standing of the banks to take legal action against their customers once securitisation has taken place?
4. What is the role and influence of the Registrar of Banks in OBS?
5. Explain in detail what the OBS understanding is of how banks create loans. This is critical for us to assert that the OBS actually has a clear understanding of banking practices and that the OBS is not acting under the influence of the banks.
6. Does the OBS recognise a distinct difference between actual physical loans of real money or “lawful money” as it is called in mortgage loan agreements, AND the virtual money loans that are created by banks on a daily basis, where money is artificially created using a book-keeping entry and thus real money is never transferred from the bank to the customer?
In your own words you indicate that “The OBS is an alternative dispute resolution body” . We are addressing a serious dispute between thousands of our members and the South African banks. We do expect the OBS to be forthcoming with honest and truthful answers to the people of South Africa.
A previous communication in which you bluntly refused to answer simple questions regarding this issue, gave us a distinct impression that the Ombudsman has a hidden loyalty towards the banks and is NOT acting impartially.
It is our view that the OBS is siding with the banks or somehow under the influence of the banks and your role is merely window dressing. This is an opportunity for you to clear this impression up and correct it in the eyes of the public. We simply cannot understand why the Ombudsman for Banking Services would be siding with the banks on this issue.
It makes no sense that the OBS would refuse to answer questions that deeply concern possible fraud by the banks and in so doing, could save the livelihood of millions of South Africans. The fact of the matter is that this information could even save human lives.
If the OBS is aware of any activity by the banks that may be of a potential criminal nature it has a duty to inform the public, and not keep it hidden. The UBUNTU Party puts it on record not disclosing critical information that could be linked to possible fraudulent activity by the banks, could be viewed as complicity by the OBS, if this matter ever ended up in the criminal court.
I further put it on record that the OBS’ lack of action, response and clarity on this issue has already harmed millions of human lives in the past and continues to do so at present.
We expect a serious and responsible answer from your office on a very serious matter that continues to affect millions of people’s lives negatively. We hereby give you seven days to respond.
Michael of the family Tellinger
Founder UBUNTU Party
Fax: 086 600 6420