Arms deal man sues Absa over closure of accounts
Fana Hlongwane’s court challenge comes amid growing political opposition to tighter regulation by the banks of politically exposed people
Politically connected businessman Fana Hlongwane, whose bank accounts were closed after he underwent review as a politically exposed person in 2013, is suing Absa for R7m on the grounds that the closure of his accounts was unlawful and that the bank had violated his constitutional rights. Hlongwane, who was a key intermediary between foreign arms dealers and the government in the arms deal of 1999, came under scrutiny by the bank when he was named in documents presented to the Seriti commission of inquiry. His court action comes in the midst of political opposition — not least from President Jacob Zuma — to tighter regulation by the banks of politically exposed people as spelled out in the Financial Intelligence Centre Amendment Bill. Zuma has declined to sign it into law. The case comes in the wake of intense lobbying of SA’s big four banks by the Gupta business family and their supporters in the ANC and the Cabinet after the family’s accounts were closed a year ago on suspicion of...
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