Johannesburg – Investec Bank has terminated its relationship with Aventro, an investment company linked to Deputy President Paul Mashatile, following inquiries about a substantial payment from the Qatari government. The bank cited reputational risks as the reason for closing the account.
Aventro, owned by Mashatile associates Tebogo Nkosi and Johanna Madibeng, received approximately R85 million from Qatar shortly after a 2017 Middle East funding roadshow.
This roadshow included both Nkosi, Madibeng, and Mashatile, who served as the ANC treasurer-general at the time. Nkosi and Madibeng are known associates of the Deputy President, having attended his personal events and parties.
A letter from Investec to Nkosi, signed by senior bank executives Howard Tradonsky and Melanie Humphries, reveals the bank's concerns regarding the transaction. The letter, obtained by City Press, details a meeting between Investec and Aventro on 15 July 2019, and subsequent communication with the Qatari government.
According to the letter, the Qatari government explained the R85 million payment as intended to "build goodwill" within South Africa for a future project. Aventro was tasked with distributing these funds to South African entrepreneurs, the ANC, and retain R10 million as a fee. The letter notes Aventro's anticipation of further funding from Qatar.
Investec demanded a series of documents from Nkosi, including the letter of appointment from the Qatari government and clarification on the nature of the R10 million fee. The bank also questioned potential conflicts of interest, noting that Aventro directors, including Leman Sithole (who has publicly referred to Mashatile as a close friend) and the late Johannesburg mayor Mpho Moerane, also held directorships in companies identified as beneficiaries of the Qatari funds. Investec specifically asked if conflict of interest declarations had been made.
Citing its obligations under the Financial Intelligence Centre Act (Fica), Investec emphasised its duty to scrutinise large transactions and assess the reputational risks associated with its clients. The bank stated its need to understand the source of funds and address any adverse allegations or public revelations concerning its clients.
The bank's investigation extended beyond the Qatari payment. Investec also questioned Aventro's planned purchase of a Pretoria building previously owned by Rebosis, which housed the public works department.
The bank raised concerns about the proposed rental rates, which appeared significantly above market value, and questioned the use of Qatari funds for property investments, given that the original mandate did not include such activities.
Further inquiries from Investec related to transactions between Aventro and the ANC Greater Johannesburg Region. The bank sought clarification on a R600,000 payment received by Aventro from the ANC region in 2008, understood to be a loan repayment requested by Moerane, and a subsequent R2 million payment made by Aventro to the same region in 2019. Investec also asked about any other beneficiaries or stakeholders influencing Aventro's operations beyond the listed directors and shareholders.
In a subsequent letter dated 15 October 2019, Investec informed Aventro of its decision to close all accounts. The bank stated the decision was based on transactions deemed outside of its risk appetite, explicitly stating no wrongdoing was alleged against Aventro or any third party.
Investec, in a statement to City Press, declined to provide specific details, citing client confidentiality, but confirmed its ongoing evaluation of client relationships in line with regulatory obligations.
Nkosi responded to City Press, denying the allegations and threatening legal action against the publication for defamation. She claimed City Press was attempting to link Mashatile and others to nefarious activities and suggested the article was a continuation of a campaign by News24 to damage their reputations. She stated she would not respond to the inquiries and had referred the matter to her legal representatives.
A spokesperson for Mashatile did not respond to repeated requests for comment.
