Top Capitec Shareholder Calls For Probe Into Viceroy Report

Meanwhile, the Democratic Alliance wants Capitec probed instead.
Mike Hutchings / Reuters

Capitec's top shareholder, the PSG Group, on Wednesday said it wants a probe into Viceroy Research, EyeWitness News (EWN) has reported.

This follows the Viceroy report that caused high drama on Tuesday and led to Capitec's shares at one point falling 20 percent – a report claiming that the bank was allegedly fabricating new loans and collections, or refinancing about R2.5-billion in principal debt per year by issuing new loans to defaulting clients.

The PSG Group says the report contains "irresponsible statements creating unwarranted market turmoil".

Meanwhile, in other reports, IOL says that opposition party the Democratic Alliance (DA) has called on the South African Reserve Bank (SARB) to investigate the allegations made by Viceroy.

"The allegations made by Viceroy Research, which Capitec Bank have dismissed as factually incorrect, are serious and should be investigated by the SARB," DA shadow minister of finance David Maynier said. "We have to be absolutely certain that there is no risk to depositors, and that the banking system is safe and sound in South Africa."

The share price of the bank has since bounced back from its initial plummet after the Viceroy report.

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