SOUTH AFRICAN banks have frozen accounts of Zimbabwean Exemption Permits (Zep) holders amid claims by the financial institutions that it was a system error.
According to the reports, Zep holders said their bank accounts were frozen in early January, preventing them from making transactions.
The reports said some banks were imposing a freeze on Zep holders’ bank accounts.
Global Immigration and Legal Consultancy legal director Gabriel Shumba confirmed the freeze of Zep holders’ bank accounts.
“We are delighted that the bank has acknowledged its mistake, because these are issues that affect the livelihoods of people. We urge the institutions not to make hasty decisions without first establishing the legal status,” Shumba said.
“It is even more reprehensible if they freeze accounts without prior notice as such behaviour might be seen as predatory and xenophobic in nature.”
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Shumba, who is a Zimbabwean lawyer, said as it stood, there were banks and employers that were now seen as gung-ho and keen to exploit this unfortunate scenario.
“We thus, urge that they first consult their legal advisers or seek legal opinion before crucifying innocent families. The possibility of being hauled to court might also prove costly to them later,” Shumba said.
A Zimbabwean human rights lawyer based in South Africa, Simba Chitando, said the freeze of Zep holders’ bank accounts seemed to be a system error rather than the result of malice on the part of the banks.
“We urge the banks to address this issue urgently and unblock these accounts so that we can avoid having to go to court to force them to do it,” he said.
Many Zep holders said their accounts at Capitec were frozen, but the bank responded quickly, saying the system issue had been resolved and account holders can transact as usual.
Most of those who reported their accounts being frozen received no prior notification.
Indications were that last year, FNB sent text messages to its Zep clients asking them to renew their permits.
The Zep holders took this to mean they needed to apply for a permit waiver or a work visa. Soon after, South Africa’s Home Affairs minister Leon Schreiber issued a one-year Zep extension.
This still left Zep holders facing the uncertainty of having their banking facilities terminated at the end of 2025 should they fail to receive an alternative visa allowing them to continue working in South Africa.
Chitando said the banks that had frozen the accounts of Zep holders had not updated their systems to reflect the Zep extension.
Affected Zep holders were advised to take a copy of their ID or passport along with a printout of the Government Gazette notice extending the validity of the Zeps to their banks.
“The ball is in the court of the Zep holders. If the banks refuse, only then can we consider legal action,” said Chitando.
This is not the first time Zep holders have had their bank accounts frozen, though on prior occasions the hold was lifted — often under threat of legal action.
The latest freeze caused panic among many in the Zep community, numbering 178 000 people.
Indications were that debit orders were not processed and they were unable to buy food, pay school fees or conduct other essential transactions.
“If the banks do not remove the hold, we will approach the courts. We can’t go [to] the courts without exhausting other remedies. It’s an issue that affects all the banks. Obviously, it would be preferable for the banks to fix this situation themselves without forcing Zep holders to approach the banks, which could involve thousands of customers,” Chitando said.
FNB head for Foreign Nationals and Non-Resident Banking, Stanton Govender told the media that the bank had noted the announcement from the Department of Home Affairs to extend the Zep deadline to November 28, 2025.
“The bank is in the process of assessing any impact to customers and any updates will be communicated to them. We are committed to helping our customers to ensure that their bank accounts are used and managed in accordance with the relevant laws and complying with the latest announcement,” Govender said.
“Our customers can also contact us directly if they have any questions or need assistance with their bank accounts.”