Randgold: explosive as the Arms Deal

Randgold: explosive as the Arms Deal

Investec claim they are, effectively, free to benefit from crime. By Barry Sergeant.     

A sage once said that when in a hole, the first rule to observe is to stop digging. This advice seems to have bypassed Johannesburg-based Investec over the never-ending Kebble saga.

In the latest chapter of what has been dubbed the biggest unprosecuted fraud in South African history, Investec and a small army of lawyers are arguing – very seriously – that, in essence, shareholders have no rights. This is breathtaking stuff, all right.

The case is known as Smyth et al versus Investec, involving 47 minority shareholders of Randgold & Exploration who are challenging the bank.

In a media release on 18 June, Investec said – once again – that it is “contesting” the claim of the Randgold minorities – a figure that runs into billions of rand. Investec stated: “We believe the case has no merit whatsoever”.

Like to see more ?

Subscribe to our on-line edition !

For a mere R305.00 per year you get the convenience of our online version including:
  • Twelve monthly issues of Noseweek delivered to your browser
  • A searchable archive
  • Access to every back issue since 1993 !
  • A downloadable PDF version

If it’s just the article you are after, you can purchase it by clicking here.

Tempted ?

For a taste of what awaits you, you are welcome to browse this free issue.

Locus Standi
Rights Of Shareholders
Western Areas Gold
South Africa
Gerald Farber
Share this article:

Reader's comments

Like to add your own comment ? Please click here to subscribe - OR -
Submitted by : Scott Cundill of Johannesburg on 2014-08-07 13:29:43
OH MY GOODNESS! Interesting that Investec openly admits that they securitised their loan. See here:

Investec states that in terms of the 2005-2006 "Investec Loan" Investec ultimately lent circa R1bn to JCI via an SPV structure, which was collateralised by a range of assets. "Through this process", argues Investec, "over R8bn of assets were preserved for JCI, Randgold and Western Areas shareholders".


While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the authors nor the publishers of this website bear any responsibility for the consequences of any actions based on the information contained therein.

Important information regarding cookies
By using this website, you consent to the use of cookies in accordance with our Privacy Policy.