South African Banks Contest Racketeering Allegations from Defunct ETA Owner

South African banks, including Nedbank, Standard Bank, ABSA, Wesbank, and Investec, are facing legal opposition as they dispute claims of racketeering and collusion made by Bret Lang, the owner of the now-defunct Executive Turbine Air Charter (ETA). Lang is seeking a declaratory order from the Gauteng Deputy Judge President to unveil what he alleges was a coordinated effort by the banks leading to the liquidation of his ZAR600 million rand (USD32 million) debt-ridden business over a decade ago.

Lang contends that the banks, promising a business turnaround, instead orchestrated the collapse of his company. His financial woes began in 2009 when the South African rand strengthened against the US dollar, making it challenging to manage debts and meet salary obligations. Lang claims that secret meetings among the banks led to a decision not to support his turnaround plan, ultimately resulting in the appointment of a business rescue agency and the liquidation of his company without his consent.

An inquiry into Lang’s allegations was conducted in 2018 by attorney René Bekkers, now the Chief Operating Officer for the South African Restructuring and Insolvency Practitioners Association. Standard Bank opposed Bekker’s findings, and the matter is presently under review by the Gauteng High Court.

In response to the allegations, a Standard Bank spokesman emphasized that the bank did not collude with any other banks and followed due process throughout. ABSA also stated that the claims lack merit and will be vehemently opposed, refraining from further comments due to the ongoing legal proceedings.

Nedbank, another implicated bank, maintained that Lang’s claims have been thoroughly assessed by regulatory bodies and courts over the past decade. They assert that there is no merit to his allegations and are committed to defending against any legal actions.

As the legal battle unfolds, the aviation industry reflects on the demise of Executive Turbine Air Charter in 2011, which operated a fleet including two ATR42-320s, one BAe 146-300, one DHC-6-200, and one DHC-6-300, according to ch-aviation fleets history data. Stay tuned for updates on this contentious case with implications for the South African banking and aviation sectors.