Nedbank angered many customers this week by wading into the debate on land expropriation without compensation.

The controversial email served to inform property owners of personal liability issues relating to land expropriation. While many sceptical customers took to social media in order to question the authenticity of said notice – Nedbank has now confirmed that the email is legitimate and binding.

Nedbank: Customers must honour their contracts

Property owners were caught off-guard, as major banks have remained rather mum on the issue of land expropriation. Most financial intuitions have stuck to the ‘it’s business as usual’ rhetoric in an attempt to subdue a prevailing sense of uneasiness.

According to The Citizen, Kedibonea Molopyane, Head Group Media Relations at Nedbank, has confirmed the legitimacy of the provocative email, which states:

“It is important to note the Home Loan agreement is subject to a contractual agreement, and bond payments remain due and payable until such time that the bond is paid in full irrespective of any form of land expropriation – with or without compensation. We would encourage you to continue with the bond payments until such time a determination is made.”

In laymen’s terms, this means that if you signed on the dotted line, you’ll be forced to cough up cash until the full amount is paid off, regardless of whether your land or property is expropriated.

It’s a bombshell announcement from one of South Africa’s big banks, with far-reaching repercussions, which look to add further fuel to the fiery debate on land redistribution.

Land expropriation: Nedbank supports due process

While the bank has attracted the wrath of anxious customers, it did mention that its support of land reform rests within a constitutionally valid and fair process, saying: