Medbond in payout delay spat

Financial services company MedBond is once again embroiled in a controversy – this time over an alleged delay in the payment of R1 million to a client, a prominent Johannesburg businesswoman.

Although the company, on its website, says it takes “great pride in providing the highest level of service to each and every client”, for an enraged and frustrated Miss Luthuli, who invested R2 million with the company, it has taken months of waiting for MedBond to pay her a R1 million portion.

Luthuli requested her first name be withheld.

She said MedBond executive director Jaco van Heerden confirmed to her in the presence of one Andries Mulder and someone called Johan that the R1 million investment payout would take seven days for the company to process.

But Van Heerden rejected this claim, saying the terms of the investment allow the company 30 banking days to pay.

Luthuli said: “For a [gross value added] account of five years fixed investment, it takes 30 calendar days’ notice [for a payout].

I have now been waiting for three months to get the payment from MedBond.”

Van Heerden accused Luthuli of failing to provide Saturday Citizen with the terms and conditions of the contract.

He said: “The terms and conditions specifically constitute the fact the withdrawal will only take 30 international banking days from submitting the relevant documents.

“The client signed up online voluntarily on the advice of both her accountants and her lawyers. The allegation by Luthuli that the funds will be paid out within seven days is therefore false, untrue and malicious.”

He added: “The terms of the agreements are confidential.” Van Heerden cautioned Saturday Citizen against publishing the Luthuli story, warning it would constitute “the crime of blackmail or extortion, as well as defamation”.

In response to a question about Luthuli being in financial difficulty due to an earlier amount she withdrew having covered her sister’s hospital bills, he said: “[This] is untrue, seeing that Miss Luthuli purchased a property in the Western Cape with the funds.”

She said: “I don’t understand the relevance of me purchasing a property, on MedBond not paying me my money.”

Luthuli is questioning MedBond’s intentions, saying Heerden was “talking nonsense” in explaining to Saturday Citizen the reasons for the delay in making the R1 million payment.

“I have been waiting for three months now. Out of frustration and desperation I have decided to go public, to the media, to expose this matter,” she said.

In August, the Financial Sector Conduct Authority (FSCA) announced the provisional withdrawal of the MedBond Markets and MedBond Insurance Brokers licences after complaints from investors.

This week, the FSCA confirmed the licences remained provisionally withdrawn.

– brians@citizen.co.za