Investec lent money to JCI in 2005 which assisted the company to continue to operate. The loan agreement was concluded with the full knowledge and consent of the majority of JCI shareholders including Allan Gray, JCI’s major shareholder at the time. This loan transaction essentially facilitated the preservation of the value of assets in JCI, Randgold and Western Areas with shareholders and creditors in all three companies benefitting substantially. The alternate route for JCI at the time was liquidation as JCI had run out of cash. This situation was resolved by way of the loan advanced by Investec.
After Investec has provided funding to JCI and Mr Kebble was removed as Chief Executive, forensic audits undertaken by the newly constituted boards of JCI and Randgold uncovered the misconduct by Mr Kebble and his close associates. Investec was never a party to, nor did it have any knowledge of, any underhand dealings that Mr Kebble may have been involved in during his time at JCI, Randgold and Western Areas, and through its actions facilitated the uncovering of inappropriate governance and untoward dealings.
Throughout this process, Investec acted professionally and transparently at all times and the bank’s actions were disclosed to all interested parties.