Table of Contents
Key Points
- Court rejects Absa’s R6.7 million ($372,000) loan bid over disarrayed accounting, citing inconsistent bank statements and insufficient debt evidence.
- New CEO Kenny Fihla faces major legal blow as Johannesburg court demands full trial over disputed loan and conflicting arrears.
- Absa’s accounting errors spark consumer warnings, even as the bank pushes pan-African growth and green finance investment plans.
Absa Group, the Johannesburg-based financial services provider, under newly appointed CEO Kenny Fihla, faced a major legal setback last week. The Johannesburg High Court dismissed Absa’s bid to seize property as repayment for a disputed R6.7 million ($372,000) loan, citing “disarray” and conflicting accounting statements within the bank’s records.
Court slams Absa’s accounting, calls for trial
Judge NS Kruger ruled that Absa’s bookkeeping was inconsistent, with “one hand unaware of what the other is doing.” The court rejected Absa’s application for summary judgment, insisting the matter requires full trial and mediation, which the bank had declined.
The dispute centers on Gola Trading and Projects, which signed a mortgage-backed business loan in 2021 for R5.6 million ($310,000), plus an additional R1.12 million ($62,000) owed. When the bank claimed arrears of R434,324 ($24,000) based on five missed installments, Gola contested these figures, presenting statements showing fluctuating arrears and payments made between June and October 2023.
Conflicting loan statements and disputed arrears
Absa’s claim fluctuated widely—from zero arrears to over R5 million ($277,000) in disputed amounts within months. Gola and co-respondents argued that Absa’s acceptance of payments after the alleged loan cancellation suggested the contract was still active or reinstated. The bank’s own affidavits admitted to errors and incomplete accounting.
The court found Absa’s evidence insufficiently clear to establish the exact debt or arrears, highlighting the inconsistent bank statements and lack of clear breach notification in the loan contract. Consumer legal expert Leonard Benjamin emphasized the importance of challenging bank calculations, citing frequent errors in interest rates, charges, and arrears claims. “Few defendants have access to proper documentation but can use court procedures to demand them,” Benjamin added.
Absa’s strategic outlook amid challenges
Despite the court setback, Absa is focused on expanding its pan-African footprint, serving over 12 million customers across 10 countries. The bank has pledged R100 billion ($5.5 billion) toward green finance initiatives by 2025, a first for South African banks.
Absa also plans to open a Dubai office in early 2026 to leverage rising trade flows between Africa and the Middle East. The group recently secured $75 million in climate finance to support Mauritius’ environmental targets.
Kenny Fihla, appointed Absa Group CEO in June 2025, brings nearly 20 years of banking leadership, including senior roles at Standard Bank Group. Under his stewardship, Absa aims to strengthen compliance and operational rigor following recent sanctions for failing to meet Financial Intelligence Centre Act standards.
