When financial institutions carry out this grand conspiracy in an attempt to defraud of unsuspecting client it gets worrisome. Mercantile Bank has been taken to court over allegations it conspired with an alleged fraudster in illegal asset stripping worth hundreds of millions of rand.
The bombshell litigation could not have come at a worse time, as the Portuguese-owned and South African-based bank is up for sale.
Alert Steel is seeking damages of R351m caused by alleged “mastermind” Rayhaan Hassim, Mercantile Bank and West Lake Trade and
Investments following what it believes was an illegal liquidation process in 2014. ArcelorMittal South Africa has joined Alert Steel as a second plaintiff in the matter.
Alert Steel’s counsel, Wim Trengove SC and Emmanuel Limberis SC, filed papers in the Johannesburg high court on Friday and included the Master of the Court as a defendant, as the court finalised the liquidation.