Investec, South Africa’s bank exclusively serving well-heeled clients, has been implicated in investigations into the world’s largest tax fraud in history, investigative journalism group amaBhungane revealed.
According to the report, Investec’s involvement in the alleged tax fraud laid bare in a massive leak of German prosecutors’ documents goes as far back as 2008 relating to large-scale cum-ex trades of BMW shares. The alleged fraud between 2007 and 2012 involving lawyers, bankers, and financial services outfits from across the world is estimated to have cost European revenue services more than €55bn.
Although the alleged fraudulent deals linked to Investec were done in its small Irish office, approval evidently came from its head office in Johannesburg. According to amaBhungane, the evidence contained in the leaks raises the possibility that senior staff, some still in top positions at Investec, may have approved the bank’s involvement in the alleged fraudulent schemes, opening themselves and the bank up to potential criminal and civil liability.
The fallout comes just as CEO Fani Titi is pulling in the reins and refocusing operations to South Africa and the UK. In his three years at the helm, he sold the Australian operation, exited the private equity portfolio in Hong Kong, and closed the Click & Invest digital investment operations.
You can read the full shock reveal alongside amaBhungane’s more than 60 questions to Investec and an explainer on cum-ex trades on the Daily Maverick. Needless to say, Investec will have to do better than its one-page response to defend its stripes.
Meanwhile, in the markets, the rand traded a touch softer R14.47 as renewed concerns over Chinese property developer Evergrande saw emerging market currencies retreat. “The rand has run quite strongly again, and we will probably see some consolidation now at the firmer levels. A break back above R14.50 could open the way for a more significant correction to R14.60 and possibly R14.70 in the medium term,” says TreasuryONE.
Meanwhile, Bitcoin’s brisk run to an all-time high just under $67,000 has tipped the crypto market over $2.7 trillion. This morning, the cryptocurrency was trading just below $65,000 in London on Thursday.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
Helium: South Africa strikes new ‘gold’ – Africa News
Johann Rupert’s luxury goods producer Richemont in talks to offload loss-making YNAP – Billionaires Africa
Alcohol ban ahead of possible Covid-19 fourth wave in December will be crippling, warns Pick n Pay’s Ackerman – Daily Maverick
Global Business
Elon Musk’s Boring Company gets green light for Las Vegas tunnel system – The Verge
PayPal is said to weigh $45 billion purchase of Pinterest – Bloomberg
Two SIM swappers phished a phone company so they could steal $16K in crypto – The Verge
Markets
Most Asia markets up, Hong Kong swings as Evergrande sale fails – AFP
Bitcoin’s price has reached record highs – baffling billionaires and spooking banks. What’s next? – Sky News
Interest rates are coming: economists – BusinessTech
Opinion/In-depth
Digital Vibes scandal: The story behind the story – Daily Maverick
Unpacking what some African countries are doing about tobacco control – The Conversation
Analysis: What lies beneath? Hidden debt fears feed China’s property woes – Reuters
Video
The Out of Order index: How it works and why it’s important – News24
Shenzhen’s hidden fortune of $30 billion – Bloomberg
Explained: Britain’s fossil fuel dilemma – Reuters
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