Johannesburg - Regal Treasury Private Bank had formed a partnership with telecommunications groups MTN and Sempres to introduce an internet and cellphone banking concept that would have revolutionised the country's banking system, according to Jeff Levenstein, the former chief executive and chairman.
The project fell apart when the bank was forced into curatorship to prevent it falling victim to liquidity problems after clients rushed in droves to withdraw deposits.
The project would have given thousands of South Africans access to banking through the internet and their cellphones, claimed Levenstein.
He said the bank had secured the rights as MTN's banking partner.
The cellular operator has about 4,5 million subscribers, while Sempres, in which Regal held a 9,7 percent stake, has its own wireless and information technology infrastructure.
Levenstein said he was never consulted on the models developed by the bank or the projects it was involved in, even though he was the architect of about 90 percent of Regal's revenue.
"How can anyone without the proper information reach a conclusion about the value of assets E we were about to change the face of banking in South Africa and Regal was let down harshly, unfairly and without cause," Levenstein testified.
The curatorship of the bank was orchestrated by a group of former directors to spread false information and to lower the bank's worth so it could be snapped up cheaply by "predator companies", Levenstein claimed.
The group included:
n Peter Springett, a former chairman of Regal and PG Glass;
n Mark Springett, a former head of asset management and Regal director, and son of Peter;
n Nick Steen, who took over from Mark Springett as head of asset management;
n Zeca Lopes, a former director and operations officer and;
n Non-executive directors Bertie Lubner and Gerald Schneider.
Levenstein further believed that Tim Store, the bank's curator, and auditing firm Ernst & Young had not properly valued the bank's assets as most of its projects and models were in embryonic or conceptual stages.
Ernst & Young said in its testimony to the commission last week that Regal's board had lied and concealed information from the auditors, making it impossible for them to express a clear opinion.
Investec is still investigating the possibility of acquiring some of Regal's remaining assets, said to be worth about R600 million, through a scheme of arrangement.