Durban Entrepreneur Sues Nedbank for R40bn Over Fraud Listing

Durban entrepreneur Shaun Naidu is suing Nedbank for R40 billion after being listed as a suspected fraudster for eight years, severely damaging his business and personal life, according to the Sunday Times report.

Fraud Listing Discovery

Naidu told the Sunday Times he first discovered the listing in 2015 when he tried to open a bank account and was flagged on the Southern African Fraud Prevention Service (SAFPS) database.

“I was told I was flagged by Nedbank on the Shamwari database… Due to this listing, I couldn’t open a bank account at any banking institution,” Naidu said.

Despite obtaining a police clearance certificate confirming no criminal record, Nedbank initially denied submitting the fraud indicator.

Failed Resolutions & Legal Battle

After years of fighting the listing:

• 2015: Filed a complaint with the National Credit Regulator (NCR), which demanded Nedbank remove the listing.

• 2021: Lawyers challenged the listing under SAFPS’s new dispute process.

• 2023: SAFPS finally removed Naidu’s name after Nedbank’s instruction.

In March 2024, Naidu sent Nedbank a R39.8bn damages claim, citing lost business opportunities, including exclusive distribution deals for international brands.

“Besides losing lucrative business deals, I was not able to travel to international trade fairs… I believe my business would have benefited our economy and created thousands of jobs,” Naidu said.

Nedbank’s Response

Nedbank has filed an exception to the summons, calling the claim defective. The bank told the Sunday Times:

“As the matter is before court, Nedbank cannot comment at this time. We can however confirm that we are defending the matter.”

The case highlights the devastating impact of erroneous fraud listings. If successful, Naidu’s claim could set a major legal precedent for financial damages against banks.