A former operator of the now defunct Johannesburg-based multimillion aircraft company has shared his own experience of what it is like to have his business run to the ground by banks who allegedly colluded to deceive him and destroy his legacy.
Bret Lang accused five banks, Nedbank, Standard Bank, ABSA, Wesbank, and Investec, of having committed racketeering by allegedly orchestrating the collapse of his R600-million worth debt-ridden business 14 years ago.
If charged and prosecuted successfully, according to Lang, the banks might be fined R1 billion or their senior managers sentenced to life imprisonment.
In a letter he wrote to the office of Gauteng Deputy Judge President (DJP) RT Sutherland on August 25 seeking justice for the collapse of his business empire, Lang described himself as a former sole director of Executive Turbine Aviation (ETA) who has been reduced to a layperson status.
“I have recently launched a court application for a declaratory order as to the conduct of all involved, and to expose the unlawful dealings of mainly Nedbank,” Lang told “The Sunday Independent”.
Nedbank, Standard Bank and Absa have not responded to a request for comment.
He has requested the DJP to allow the matter to be heard in the Commercial Court.
ETA operated 33 aircraft, which were made up of Beechcraft 1900D, 1900C, Embraer 120 and King Air Aircraft. He also had a PT6A engine overhaul facility.
When ETA was in full operation with healthy bank accounts, it had R200 million worth business contracts with Nedbank, Standard Bank, Absa, Wesbank and Investec.
Lang said his trouble started when his company suffered financial loss after the rand had massively strengthened against the dollar around 2009. He said by then his company, which operated from Lanseria Airport in Johannesburg, suffered as it was trading in dollars. As a result he could not keep up with servicing his debts and paying salaries for about 400 staff, including engineers, pilots and flight attendants and rent.
By that time ETA was banking and buying his aircraft through various banks. He said as the banks were concerned that he was also owing them a lot of money, they came together and promised to assist him with his business’s turnaround strategy, and Nedbank was going to lead that strategy.
“They misled me to believe that there was gonna be a turnaround in 18 to 20 months.
“Nedbank misled me to believe that they were gonna assist me with the turnaround and basically all the banks met in a secret meeting and decided to not support the turnaround and work out all the debt. All they wanted was to safeguard their interest,” said Lang.
He said part of the turnaround strategy included removing him as the director and appointing a business rescue to take charge of the business.
He said when he realised that he had been misled it was too late as his business was already liquidated in 2011 without his consent. He spent more than R20m hiring lawyers to fight against the banks.
After running out of money to pay legal fees, he decided to pursue the matter on his own.
Lang, a former Zimbabwean national, started this business on his own, using experience he acquired while he was employed doing engine overhaul for the Zimbabwe-based Field Aircraft Services.
He then migrated to South Africa in 1992 and was employed by Field Airmotive Services for the same job he did back home. With his experience, he started his own business in 1996 where he fixed aircraft engines.
“It was over the ensuing four years that I set up my own PT6A aircraft engine overhaul facility to overhaul Pratt & Whitney PT6A engines with American Federal Aviation Authority (FAA) accreditation.
“In due course, as the business grew, I began purchasing aircraft that required considerable maintenance and overhaul work, in order to refurbish them with the view of reselling them. After a period, I began keeping certain aircraft that I had purchased and refurbished, leasing them out to charter operators for contract work,” he said.
Then the business met financial trouble and became insolvent.
He said in November 2009 the banks invited him to attend a meeting to discuss a turnaround strategy. He said he would often be asked to leave the meeting.
“All the banks not only deceived me, but when I was not in the meeting they all agreed that Nedbank would be in charge of the alleged turnaround.
“Nedbank got into a lot of unlawful mischief, and Nedbank is the main party here, but all the banks colluded in the secret meeting to deceive in order to put Nedbank into that position of strength,” he said.
He said although he wanted to appoint his own preferred business rescue agency, Nedbank appointed Corporate Renewal Services, which according to him was unknown.
He said he had preferred that the turnaround to be conducted by PricewaterhouseCoopers or Deloitte.
“Nedbank refused to use a well-known accounting firm to help me with the turnaround,” he said.
He said in 2018 attorney René Bekker, who is now chief operating officer for the South African Restructuring and Insolvency Practitioners Association (SARIPA), was appointed to conduct a Section 417 enquiry into his racketeering allegations against mostly Nedbank and Standard Bank and in 2019, Bekker submitted her report to the Master of the High Court requesting the intervention of the public prosecution.
But Standard Bank, through its attorney, opposed Bekker’s findings.
“Ms Bekker dismissed both Nedbank and Standard Bank’s complaints and requested the Master to provide her report and the racketeering submissions to the DPP (director of public prosecutions),” read his legal document.
He said Nedbank has since brought a review application with the Gauteng High Court, Johannesburg to set aside both Bekker’s Section 417 report and the Master’s decision to send the 417 report and submissions to the DPP.
“Ms Bekker stood by her report and decisions, however agreed to abide by the court’s decision due to Nedbank threatening cost orders against any party who opposed the application,” said Lang.
When contacted, Bekker confirmed that she sat as commissioner for the inquiry as an admitted attorney after having been appointed by the Master of the High Court. She said the inquiry had nothing to do with SARIPA.
“Unfortunately, the 417 inquiry is confidential and I am not allowed to comment there.
“It was the Section 417 inquiry authorised by the Master of the High Court, and if I remember correctly it was the then liquidators who had applied for the inquiry,” she said.
Bekker said she resigned as the inquiry’s commissioner before this process was completed as she became busy with her SARIPA duties.
“So there was no finality and there was no final recommendation.
“They were going to carry on with the inquiry in front of another commissioner. So there was no final report,” said Bekker.