Corporate power must be wielded with responsibility and accountability. If Nedbank does not reverse its course, this issue will inevitably escalate, says the writer.
By Sipho Tshabalala
There comes a time when silence is no longer an option. When the mighty elephants of industry clash, it is not the giants themselves who bear the scars, but the ordinary people – the workers, their families, and their communities. This is precisely the tragedy unfolding before us, as Nedbank, one of South Africa’s largest financial institutions, moves to close the banking facilities of the Sekunjalo Group.
In a heartfelt and impassioned letter addressed to Nedbank's leadership, Vulture Ntuluki, General Secretary of the Information Communication and Technology Union (ICTU), lays bare the devastating consequences of this decision. While corporate heads engage in battles over reputation and risk, it is the Sekunjalo employees who are left in the wreckage, stripped of their livelihoods and forced into a life of uncertainty and poverty.
Ntuluki’s letter highlights an undeniable reality: over 3,000 Sekunjalo employees have already lost their jobs as a result of Nedbank’s decision. An additional 695 workers now find themselves standing at the edge of a precipice, teetering between hope and despair. The chilling words of the Kenyan proverb, “When two elephants fight, it is the grass that suffers,” has never been more apt.
But what exactly has driven Nedbank to take such a drastic step? The bank cites the recommendations of the Mpati Commission of Inquiry, which labelled Sekunjalo a "reputational risk". But let us ask: does that label alone justify the wholesale destruction of so many lives? Is the pursuit of corporate image so important that it warrants the sacrifice of thousands of South African families? Ntuluki rightly questions whether Nedbank’s actions, driven by its desire to distance itself from controversy, truly align with the bank’s professed commitment to corporate social responsibility.
And here lies the crux of the matter. It is easy for a corporate giant to hide behind the cold, impersonal language of “reputational risk,” but such language conveniently overlooks the human cost. For every banking facility that closes, for every account terminated, there are lives disrupted, futures destroyed, and dreams shattered. This is not just a battle between Nedbank and Sekunjalo. This is a battle for the dignity and survival of the very people who keep our economy moving.
Consider the broader implications. As Nedbank tightens its grip, what happens to the Black empowerment initiatives that Sekunjalo has spearheaded? What happens to the investments made in communities desperate for opportunity? By targeting Sekunjalo, Nedbank is not only undermining a company but also betraying the very principles that South Africa’s democracy was built upon – the promise of a better future for all, not just the privileged few.
In this climate of unemployment, poverty, and social inequality, the bank’s actions strike a particularly bitter note. South Africa’s unemployment rate is among the highest in the world, and the closure of these banking facilities only serves to deepen the crisis. As Ntuluki so powerfully points out, these decisions do not exist in isolation. The ripple effect of Nedbank’s actions will be felt far beyond the confines of corporate boardrooms. More families will face poverty, crime will rise, and social tensions will continue to escalate.
Ntuluki’s plea to Nedbank is both heartfelt and pragmatic: engage with Sekunjalo. Find a solution that doesn’t involve punishing the innocent. No business can survive without banking facilities, and the closure of Sekunjalo’s accounts could very well be the death knell for a company that has been a champion of Black empowerment. Dialogue, not destruction, is the answer.
This letter is not just a cry for help; it is a call to action. Corporate power must be wielded with responsibility and accountability. As Ntuluki warns, if Nedbank does not reverse its course, this issue will inevitably escalate. The South African Federation of Trade Unions (SAFTU) and other labour bodies stand ready to defend the workers and their families, and the matter may soon find its way into the hands of political leaders.
Nedbank’s leadership has a choice to make. Will they continue down a path of destruction, or will they recognise the power they hold to change lives for the better? Now, more than ever, we need corporate giants to be part of the solution, not the problem.
In the end, this is not just about Sekunjalo. It is about the future of our democracy, our workers, and the very soul of our nation. Nedbank must decide whether it stands with the people or against them. There is still time to choose the right path. But time, as always, is running out.
* Sipho Tshabalala is an independent writer and commentator.
** The views expressed do not necessarily reflect the views of Independent Media or IOL.