NOTES: Cattle baron's restaurateur's beef with Absa


When Vic da Silva applied to Absa for a R2.5m loan to start a Cattle Baron restaurant in Bel Air Mall in northern Johannesburg, he had no idea what he was letting himself in for. Absa certainly did ...

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Submitted by : Chris Day of Spings on 2009-12-22 18:29:44
What about the "theodooses"should they not be held accountable. How come they get away with all the heartache they have caused.
 
Submitted by : Reon De Reuck of Little Falls on 2009-11-28 07:44:03
I see a R6mill loan, I don't see the owner's cash contribution. Raising R3.5 on your house and then getting a R2.5mill loan from the bank for a restaurant is crazy. You must sell a lot of food and it must be good to pay R6mill.

I would also look for an out in today's recession. I still don't understand why people want to expose themselves with so much debt in one business; is it ego or stupidity?

Editor's Note
You don't see owner's cash contribution because there may have been non. Someone at the bank didn't do what they are paid to do. On ego or stupidity! Could be both... a nasty combination.
 
Submitted by : David Claase of Johannesburg on 2009-11-27 13:59:47
Pete - are you serious? What a ridiculous idea. How about we need laws that say adults must take responsibility for their actions. Oh, wait - that's the basis of our legal system - what would a reasonable man do? I think a reasonable man would check the details of an investment before committing R6m to it. It's very much like buying a house with all sorts of defects and then blaming the bank for giving you the loan to buy the house.

I would, however, like to hear debate about a law that limits the legal costs of both parties to an amount determined by the resources of the party who can least afford the costs. This means that a bank (or government!) cannot spend more than the amount that the other party can afford. This should even the playing fields and prevent "big guys" from beating "little guys" purely becasue they have deep pockets. I don't think lawyers would like that law, however, so it will never come to pass.

Editor - you're a lawyer, what do you think?

Editor's Note
Being a lawyer and a practicing attorney or advocate are not one and the same... Do you want practicing attorneys to stage street protests? They would use all Greek and Latin unknown to even native Greeks arguing why it would be a Λάθος (Greek for wrong) idea.
 
Submitted by : Pete Swanepoel of MONTCLAIR on 2009-11-27 13:06:38
We need laws that say WHENEVER a big guy and a little guy are deadlocked, the one with the resources gets the blame. EVEN IF one ABSA division did not know what the other division knew, they should be busted for exactly that. Banks should not get away with slackness, any more than they should get away with fraud. Of course, they think it's their right to get away with both! "It's been a long-held tradition" they'll say. It's time it ended.

Editor's Note
ditto
 
Submitted by : David Claase of Johannesburg on 2009-11-27 11:40:27
Er...if it was public knowledge that the mall was built illegally and no restaurant licenses were granted at the time that Da Silva applied for the loan, then surely this knowledge was available to Da Silva and the onus is on him to check this out before ploughing R6m into an investment? I know I would do alot of homework before committing R6m.

It will be interesting to see what the National Credit Regulator tribunal will rule if this case is referred to them. I hope you follow up, Noseweek.

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