Former Standard Bank employee debarred after targeting clients and borrowing over R28,000

A former Standard Bank employee has been debarred from working in the financial sector after it was discovered that he used clients' information to borrow over R28,000.

Thapelo Jan Baloyi was appointed by the bank as an independent contractor in October 2022. He worked as a financial planner at the Secunda branch in Mpumalanga.

Baloyi's problems began in July 2024 when a client, identified as TG, lodged a complaint with the bank’s forensic department. TG reported that Baloyi had contacted her via phone and WhatsApp, requesting to loan R1,000.

Subsequently, he provided his personal bank account details for the transfer. TG, sensing the impropriety, refrained from making the deposit but was immediately concerned about Baloyi's potential access to her Stanlib Investment account held at Standard Bank.

An investigation was conducted, and the forensic department established that Baloyi contacted TG in July 2024 asking to borrow R1,000 and when TG told him she will report the matter to the police, he deleted the messages. In his defence, Baloyi said he had sent the messages to the wrong person.

Forensic auditors discovered further troubling incidents. Between April and June 2024, Baloyi asked for R2,500 and R1,000 from two other clients.

He also faced allegations of receiving R25,000 from another client in December 2023, which he promised to repay with R5,000 interest within six months—a commitment he failed to honour.

During the hearing, Baloyi confirmed that the R25,000 was paid into his account, and he hasn't repaid it.

In July 2024, Baloyi’s activities escalated when he allegedly solicited at least R17,000 from a client with the promise that he will help her daughter to get a job at the bank.

Although attempts were made by Baloyi to have the daughter employed, the client’s daughter remained unemployed, and the money has not been refunded.

It was also found that he was conducting a consulting business with some of the bank's clients and also failed to return the bank's laptop, effectively committing theft.

The culmination of these events led Standard Bank to terminate Baloyi’s contract in August 2024.

In order to arrive at a fair conclusion, Baloyi was provided with an opportunity to make written representations in October 2024 explaining why he should not be disbarred.

Baloyi failed to respond to the invitation and requested an extension to submit the written representations to enable him to gather the necessary documents including emails and contracts.

He requested additional time to ensure that he provided a thorough and accurate response at least by November 15, 2024. He further requested details of the clients who made allegations that he had borrowed money from them. 

In respect of the laptop, he said he lost it and undertook to file a police report and provide the case number as soon as possible.

He was granted an extension by two weeks but still failed to meet the deadline to submit the written representations claiming that he was sick. A day later, he submitted his response.

Baloyi denied that he made any offer of employment in exchange for payment. He alleged that the discussions between the client and her daughter solely concerned a potential job opportunity contingent upon the daughter meeting the bank's recruitment criteria. He said the recruitment process was halted by the bank and no payment was ever received.

He denied the allegation that he borrowed money from clients. He contended that his business model required upfront payments for the services he rendered, and this was clearly communicated and documented in written agreements with clients.

Regarding the laptop, he said it got lost during his visit in Kwa-Zulu Natal. He indicated that the loss was unintentional and does not constitute dishonesty or misconduct and he was willing to arrange payment to replace the device if required.

Despite the submissions, the bank continued with its decision to debar him in November 2024. In an effort overturn the decision, he sought relief at the Financial Service Tribunal (FST) the same month.

Among other things, he argued that the debarment process did not afford him a fair hearing or adequate opportunity to challenge the evidence against him and that notice of intention to debar lacked specificity, hindering his ability to respond effectively.

He further added that there was no adequate hearing conducted, and the decision-making process was biased and unilateral and he was denied the opportunity to cross-examine witnesses or challenge evidence. 

After evaluating the evidence, the FST said Baloyi misused his position of trust which he acquired by virtue of the contract which effectively authorised him to act on behalf of the bank as its representative.

"The applicant (Baloyi) took advantage of the respondent’s (bank) clients and abused the privilege of having access to their confidential financial information, to borrow money from them without repaying same and thus benefited himself at their expense.

"This conduct cannot be condoned, and we find that the applicant was dishonest and abused his position of trust when he solicited money from the respondent’s clients in conflict with obligations to protect and advance such clients’ financial positions," said the FST.

Moreover, the FST said Baloyi failed to show remorse and did not provide any reason why these clients would make allegations against him without any basis. 

"For the reasons set out above, the applicant’s conduct compromised his personal character of honesty and integrity... and we are satisfied that the conduct of the applicant demonstrates that he no longer meets the character requirements of honesty and integrity,'' said the FST.

As a result, the FST said there was no basis for it to interfere with the decision made by the bank.

His application was dismissed.

sinenhlanhla.masilela@iol.co.za

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