Legal proceedings pause R60 billion class action lawsuit against South Africa's major banks

Legal proceedings in a R60 billion class action lawsuit against South Africa's major banks were halted Tuesday after concerns were raised about the lawyer representing the dispossessed homeowners, Douglas Shaw. Counsel for First Rand Bank informed Judge Leonie Windell that Shaw allegedly lacked a valid Fidelity Fund Certificate, a mandatory license to practice law and handle client funds. Judge Windell gave Shaw until Wednesday to produce the certificate, warning that its absence could severely hamper the case.

Further complicating matters, Shaw was accused of contempt of court for referencing previously barred documents in his application. He claimed this was a mistake and submitted an affidavit explaining the oversight, promising to rectify it. The judge stated she would rule on the contempt charge later, but emphasized the importance of resolving the certificate issue to allow the long-awaited case to proceed.

An additional disruption occurred when a woman, claiming Shaw owed her R375,000 from a property deal, attempted to address the court. The judge dismissed her testimony as a personal matter. The lawsuit, filed six years ago, alleges that the banks sold properties for less than their market value and not as a last resort, causing significant financial losses to the applicants.

(Source：Iol)