Chief Executive Officer (CEO) of FNB Home Finance, Lee Mhlongo, says FNB realised during the takeover that Saambou’s method of calculating interest was technically unaligned with how interests should be calculated.

“In 2006, FNB proactively offered refunds to the affected Saambou customers, the amount involved being approximately R154 million,” says Mhlongo.

Mhlongo says there was no evidence of racial bias or discrimination from the Saambou books.

His comments come after thousands of black home owners believe they were discriminated against by FNB when it took over Saambou’s books through securitisation.

They allege they were charged higher interest rates compared to white homeowners and have been waiting for years for FNB to pay back the money the bank took from them. The matter has headed to the Equality Court.

Listen to Lee Mhlogo’s full interview below:

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