Wednesday, 6 February 2013

Urgent Request For Disclosure To Registrar of Banks

TO: The Registrar of Banks – Pretoria, South Africa                          6 February 2013


Mr Rene van Wyk


The Ubuntu Party is a duly registered political party in accordance with the IEC and confirmed in terms of the Electoral Commission Act of 1996 as can be confirmed at :

It has come to our attention that the banks have been refusing to answer simple questions to thousands of people, regarding the highly secretive practice of SECURITISATION as contained in Rule 35 read with the Section 1, definition of ‘business of a bank’ of the Bank Act.

The banks and the Ombudsman For Banking Services (OBS) have bluntly refused to answer questions regarding securitisation, posed by the party itself, thousands of our members and those of other NPO’s and interest groups.

It is our understanding that as from the initial securitisation transactions as far back as 1998 no proper record had been kept by the banks that, inter alia, includes which of the banks’ client’s loans had been securitised.
The National Credit Act, Sec 69(4) requires that all credit agreements that have been sold or traded are to be registered with the National Credit Regulator.
Furthermore, we are also to understand that as of November 2007, under which the National Credit Act became operative, the banks had not registered any securitisation transactions with the National Credit Regulator.
It appears to us that the banks are hiding behind the Bank Act and they rely on ‘non-disclosure’ provided for in the same act. This is completely unacceptable in a free and democratic society whose highest law is enshrined in its Constitution and the Bill of Rights. It is also apparent that the banks are consciously hiding activities that could be interpreted as fraudulent and therefore of a possible criminal nature.
This is an extremely serious matter that has affected the lives of millions of South Africans. For the benefit of all the people of South Africa and in the interest of justice and complete transparency we request that you respond within 7 (seven) days to the following questions.

  1. Do South African banks participate in a process called securitisation in any way?
  2. Do the banks have to comply with the National Credit Act, Sec 69(4) to register sales and transfers of credit agreements?
  3. If NOT - Why not?
  4. State the reasons why South African Banks are not obliged to disclose to the public the content of a bundled securitisation transaction.
  5. According to the BASA website, South African banks are securitising loans at a rate of about R30 billion per month. Please confirm if this is reasonably accurate.
  6. Please provide us with accurate figures of monthly securitisation amounts for all the banks, since this is not always easily obtainable.
  7. Explain how the legal standing of people’s loans would be effected if their loans have been securitised?
  8. Does a consumer have the right to know if their loan has been securitised?
  9. What kind of loans are securitised by South African banks? As in: home loans, vehicle loans, credit cards or other? Please give details.
  10. Please explain how our members can trace the securitisation of their loans?
  11. Prior to, or during the operation of the National Credit Act, did the banks apply for an exception, which would allow them to use securitisation as an alternative source of funding?
  12. If so, how did they apply, when and to whom - and what was the outcome?
  13. When a loan/bond/note is sold to a third party in securitisation, must that third party be registered in terms of the National Credit Act? If not, explain why not?
  14. When a loan/bond/note, is sold through the process of securitisation, who becomes the rightful owner and/or holder of the loan/bond/note?
  15. When a loan/bond/note, is sold by a bank through the process of securitisation, does the bank retain locus standi on a property attached to the loan?
  16. What is the official position of the Registrar of Banks with regards to the effect of securitisation on the South African economy?
I await your urgent response.

in Pure Truth

Michael of the family Tellinger
Chair Person & Founder
All rights reserved - without prejudice - non assumpsit. 
Fax: 086 600 6420