Loading...
See More

Standard Bank slapped with R528m fine

Dec 07 2012 08:12 Reuters

(Shutterstock)

Company Data

MTN GROUP LIMITED [JSE:MTN]

Last traded 0
Change -1,88
% Change 0
Cumulative volume 2667764
Market cap 449.37bn

Last Updated: 22-10-2014 at 04:23. Prices are delayed by 15 minutes. Source: McGregor BFA

NASPERS LIMITED [JSE:NPN]

Last traded 0
Change 21,44
% Change 0
Cumulative volume 966274
Market cap 525.05bn

Last Updated: 22-10-2014 at 04:24. Prices are delayed by 15 minutes. Source: McGregor BFA

STANDARD BANK GROUP LIMITED [JSE:SBK]

Last traded 0
Change 0,1
% Change 0
Cumulative volume 4615379
Market cap 209.60bn

Last Updated: 22-10-2014 at 04:23. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Standard Bank seals Argentina deal

Argentina nods ICBC's Standard takeover

Standard scoops global finance awards

Standard Bank is SA’s greenest company

Standard Bank to carry out maintenance

Standard Bank to cut London jobs

 

Johannesburg - Standard Bank Group [JSE:SBK] has been ordered to pay R528m to a union pension fund after a court ruled this month that it had dealt in the fund's shares improperly.

Trustees of a pension fund belonging to the South African Commercial, Catering and Allied Workers Union (Saccawu) lent Standard Bank shares worth nearly R160m in 2002 for five years.

The bank repaid the pension fund in 2007 and also handed over guaranteed returns agreed in its contract.

However, a court invalidated the deal this month, saying the initial loan of the shares should never have happened.

In its ruling, the court said Standard Bank should surrender nearly 3 million shares in mobile phone group MTN Group [JSE:MTN] and 72,595 in media giant Naspers [JSE:NPN] - some R528m based on Thursday's prices.

It also has to hand over more stock in ElementOne and Avusa [JSE:AVU], which have since been delisted and are therefore difficult to price.

"Had the pension fund just kept the shares and not lent them to Standard Bank to utilise and take the benefits and dividend and growth, the pension fund would have been better off to the extent of anything between R500m and R700m," pension fund curator Tony Mostert said.

The bank has 14 days to appeal the court's December 3 decision and said it was awaiting legal advice.

"The arbitrator has made an award on some of the issues and has yet to hear evidence and/or argument on the balance," it said in a statement. "As the arbitration is a private process and ongoing we prefer not to say more about it at this stage."

The court appointed Mostert custodian of the pension fund's shares in September 2002 in place of the trustees.  

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest

saccawu  |  standard bank group
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
33 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...