Benguela letter raises more questions about claims Capitec is hiding write-offs
Benguela Global Fund Managers wrote to Capitec Bank earlier in January questioning its practice of rescheduling loans to clients, deepening the controversy around the South African lender after a short seller alleged that it was concealing write-offs. Boutique investor Benguela raised concerns about Capitec’s "aggressive practice of rescheduling arrear loans and advances", according to a letter dated January 19 and seen by Bloomberg. "We believe this practice has distorted the true performance of your business and warrants some review," the letter said. Capitec, which makes unsecured loans mainly to low-and middle-income households, posted its biggest intraday share drop to date on Tuesday after Viceroy Research alleged it was concealing significant write-offs. It then recovered most of those losses after the South African Reserve Bank said it had no evidence to suggest that the lender’s stability was in question. Speaking at a media conference in Cape Town late on Tuesday, Capitec ...
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