The inability of the board of African Bank Investment to monitor actions of Leon Kirkinis, its former Chief Executive, is, among other things, one of the main reasons for the firm’s collapse, media sources said citing people who got hold of the case’s report, report which should be published on May 12, 2016.

Comparing this information to that contained in the bank’s latest yearly report (2013), observers suggest that 7 out the 11 members of African Bank’s board had no experience in banking and were unable to perceive red signs which, two years earlier, should have allowed to mitigate or avoid the crash.

African Bank Investment Limied (ABIL) operated slightly differently from traditional commercial bank. The bank used to borrow from investors and lend back to its customers without guarantee and a repayment method that was sometimes extremely complex. The business worked until South African economy was locked due to tax hike and price index which made it difficult for clients to pay back loans thus impairing ABIL’s ability to equally reimburse its lenders.

However, the JSE-listed bank following a long and stressful restructuring was reborn under a new banner, the “Good Bank”, which launched activities last April 4. Nevertheless, things did not really turn well for the firm’s small shareholders. Now, if the assessment report does not bring to light any fraudulent act, there is still the court which could oppose saying that their investment is risky.

Idriss Linge