Nedbank responds to R40 billion lawsuit over fraud listing of Durban businessman

Nedbank says it is defending a R39.8 billion civil claim brought by Durban businessman Shaun Naidu, who alleges the bank wrongly listed him as a suspected fraudster for eight years.

The bank told IOL that it follows a “meticulous and thorough process” before listing anyone on the Southern African Fraud Prevention Service (SAFPS) database, but declined further comment as the matter is before the courts.

“As the matter is before the court, Nedbank cannot comment at this time. We can however confirm that we are defending the matter,” the bank told IOL.

“Nedbank would like to assure our clients that we adhere to a meticulous and thorough process before listing anyone on the Southern African Fraud Prevention Services (SAFPS) database. Please be assured that we are committed to resolving this matter in accordance with the principles of fairness and justice.”

According to a Sunday Times report, Naidu alleges that Nedbank wrongly classified him as a suspected fraudster, leading to an eight-year listing on the SAFPS that he claims severely harmed his business and reputation.

“I was told I was tagged by Nedbank on the Shamwari database which was created and is maintained by SAFPS. Due to this listing, I couldn’t open a bank account at any banking institution. I was very confused at this stage," Naidu told the Sunday Times.

Naidu revealed that he became aware of his listing on the SAFPS in 2015 when he attempted to open a bank account.

The Durban businessman said despite obtaining a police clearance and seeking assistance from both SAFPS and the National Credit Regulator, his name remained on the fraud database until 2021.

It was only after his lawyers intervened through a formal dispute process that the listing was removed.

"Besides losing lucrative business deals, I was not able to travel to international trade fairs that I was invited to for more possible business deals".

The SAFPS is a non-profit organisation which aims to "improve vigilance with regards to fraud, financial crime and identity theft by educating businesses and consumers about fraud, and assisting them to protect themselves".

The organisation also strives "to combat fraud through delivering a centralised fraud-prevention function."

mthobisi.nozulela@iol.co.za

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