RESERVE BANK PROBES LIKOTSI

YWBN accused of providing false or misleading information during application

- SIFISO MAHLANGU

THE South African Reserve Bank has launched an investigation into Nthabeleng Likotsi and her bank, YWBN Mutual Bank, over claims that she may have provided false or misleading information during the bank's application process.

The move follows a major fallout with investment firm AFRIBIZ Financial Services, and could lead to serious legal consequences for Likotsi.

At the centre of the controversy is a failed R9 million deal between AFRIBIZ and YWBN. AFRIBIZ says it paid this amount for a 26% stake in the mutual bank.

But after the bank allegedly failed to meet key regulatory requirements, the promised shares were not issued.

Instead of receiving their 26% shareholding, AFRIBIZ claims it was offered just 2% as part of a "full and final settlement" - an offer the company immediately rejected.

"They sold us shares. We paid. Now we want what we paid for," said a source close to AFRIBIZ's legal team.