O'Sullivan-Skosana clash: Standard Bank faces backlash over client confidentiality amid political scandal

Forensic investigator Paul O’Sullivan's revelation that uMkhonto weSizwe Party (MKP) MP David Mandla Skosana owed money to a bank has raised eyebrows among South Africans, who were concerned that the bank might be illegally sharing its clients’ confidential information. 

When O’Sullivan walked out of the Ad Hoc Committee on Thursday without the permission of the committee’s Chairperson, Soviet Lekganyane, some members of Parliament protested while Skhosana followed him in what seemed to be an attempt to physically stop him. 

The allegations that O’Sullivan knew about the money Skosana owed the bank were discussed on social media in response to ANC MP Xola Nqola’s post, who identified the bank as Standard Bank. 

Nqola posted on X: “The name of the bank that has served Mr David Sikhosana with papers, proving to be in cahoots with Paul O’Sullivan is STANDARD BANK.”

Standard Bank spokesperson Ross Linstrom said the bank had noted the public commentary currently circulating on social media regarding the bank’s alleged conduct.

“Standard Bank does not participate in political activities, nor do political considerations influence the bank’s operational decisions.

“All actions taken by Standard Bank are governed by the laws and regulatory frameworks that apply to all financial institutions operating in South Africa,” said Linstrom.

Linstrom further said the bank is committed to protecting client information and will not divulge any customer’s personal or account details in line with the provisions of the Protection of Personal Information Act (POPIA). 

“Standard Bank places the highest priority on protecting client information. The confidentiality of customer information is a fundamental part of the bank’s legal and ethical obligations. 

“These decisions are not guided by any other external influences or events but by the merits of each individual circumstance.

“If there is any evidence of our processes not being followed, this will be dealt with immediately,” said Linstrom.  

It was alleged that Standard Bank served Skosana with lawyers' documents on Friday, a day after O’Sullivan had told him that he was owing the money to the bank.

O’Sullivan said a High Court judgment confirms Skosana owed the bank R618,000.

“All High Court judgments are public record that anyone can access. His bank took judgment against him last year and a source sent me the details of that judgment, which I verified,” he said.

According to Banking Association South Africa’s (BASA) Code of Conduct for the Processing of Personal Information by the Banking Industry, banks, which are its members, should treat personal information which comes to the operator’s knowledge as confidential and must not disclose it, unless required by law or in the course of the proper performance of their duties.

As Skosana was shouting that O’Sullivan was running away from the members of the committee, O’Sullivan responded that he should go and pay the money that he was owing to the bank. 

Skosana was heard saying: “He is running away and the chairperson… No, no, this is unbecoming.” 

While getting into his vehicle, O’Sullivan responded: “Here is the problem, you are no longer in Parliament, you are standing outside Parliament. And you are lying through your teeth. 

“You should just go and pay the debt that you owe to the bank,” said O’Sullivan before driving away. O’Sullivan did not mention which bank Skosana owed and how much he owed.  

Skosana declined to comment on the matter. 

Standard Bank released a statement on social media saying: “If any customer believes we have not met these standards, they may escalate the matter to the independent Banking Ombud for review.” 

A source close to Skosana said O’Sullivan had told Skosana that he owed Standard Bank an amount of R618,000, which matched the amount he borrowed from the bank.

“By knowing that Skosana was owing means that he had his people who were feeding him information and why this happened when O’Sullivan was appearing before the Ad Hoc Committee. 

“He is investigating all of us, maybe he did his investigation, and this time, they misled him because that money was paid back,” said the source.

The source said the debt was a normal business loan, which he paid back in October last year. 

The source said Skosana was consulting his lawyers who might take this matter up with the Ombudsman.

“It is not understandable what the sheriff was coming to him for because he already settled the debt.

“The sheriff asked for his residential address, where he could serve the papers. 

“His lawyers would do the right thing and this matter would die down,” said the source.

He said Skosana received a call, which he could not answer as he was flying to Durban. 

“On landing in Durban, Skosana saw the missed call and returned the call to someone who said he was a sheriff sent by Standard Bank lawyers.

“He (sheriff) told him to come to sign, and he (Skosana) told him he would see him when he was back. He would probably meet him early next week, and he had not seen the content of the papers,” said the source. 

The source said Skosana would talk to the media about this at the right time. 

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