Alleged FNB race bias case not over

CRUX: IT MAY QUALIFY AS INDIRECT DISCRIMINATION

Although the Equality Court dismissed the claim, the Human Rights Commission has yet to deliberate on it.

Usury expert to approach Human Rights Commission after Equality Court tosses case out.

The Cape Equality Court last week tossed out a racial discrimination claim against FNB brought by usury expert Emerald van Zyl on behalf of several black customers of the former Saambou Bank, which FNB took over in the 1990s.

The discrimination claim was based on a Saambou customer database leaked to Van Zyl in 2010. His affidavit before the court suggested a pattern of discrimination against black customers who he said were being charged up to 30% more than white customers for mortgage loans.

There was no reference to the race of customers in the database, but Van Zyl argued this was coded as “low-cost housing” (black) and “high-cost housing” (predominantly white) clients.

Research by retired sociology professor Cornie Groenewald concluded that 99% of low-cost housing Saambou clients reflected in the database were black.

Last week, FNB welcomed the Equality Court’s dismissal of the race discrimination case. “The court dismissed the matter in its entirety, including the complainant’s application to amend their declarations,” it said.

FNB Home Finance chief exe cutive Lee Mhlongo said: “We’ve always maintained the callous use of racial allegations is irresponsible and unacceptable. There has never been any evidence to suggest that race played any role in Saambou’s determination of interest rates for its customers.”

Judge Chantel Fortuin described the evidence as “vague and embarrassing” and appeared to take exception to the wide media coverage given to the case.

The Equality Court was established in 2003, and the judge said the court didn’t have jurisdiction to consider cases that occurred before this date.

But Van Zyl said the merits of the case have yet to be heard, and he would now approach the SA Human Rights Commission to deliberate on it.

“We have a few options available to us. One of them is to appeal the judgment. Another is to approach the SA Human Rights Commission (SAHRC) or the Constitutional Court.

“We will consider our options over the next few days. We have already presented evidence to the Human Rights Commission in terms of one FNB customer.”

The SAHRC has approached Stellenbosch University’s Law Clinic for legal assistance on the case.

The Law Clinic’s Stephan van der Merwe said: “We confirmed that we are willing to co-operate if there is sufficient merit.

“From what we have been informed of, we are concerned that there may be reason to suspect indirect discrimination in the matter.”

Indirect discrimination is where there is a practice, policy or rule which applies to everyone in the same way, but has a worse effect on some people. For example, if people living in a particular area are charged high interest rates and are also of a particular race, that could be considered indirect discrimination.

FNB said that cases related to these racism allegations have been dismissed by the courts on four separate occasions since 2013, including the Supreme Court of Appeal.