Standard Bank’s Estate Blunder is a Wake-Up Call for Accountants
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When a fraudster walked off with over R2 million from a deceased estate — and Standard Bank told the real executor to go chase him — the Western Cape High Court had one word: unacceptable. The court ruled that Standard Bank acted unlawfully, ordered it to repay the R2.1 million, and made it clear: the bank, not the client, bears the risk when money is paid to a fraudster.
Let’s break down what happened — and why accountants should sit up.
🔍 The Backstory
Johan Botha, a fraudster, submitted fake documents and convinced Standard Bank he was the executor of the deceased person’s estate. Despite the will naming her son-in-law as executor, the Master of the High Court somehow issued letters of executorship to Botha too.
The ‘real’ executor did everything by the book — will, death certificate, executor forms — but his letters took a full year. Meanwhile, Botha was busy cashing out R2.1 million with forged paperwork and certified stamps. And Standard Bank? They didn’t catch it. Worse — they tried to say they weren’t liable.
The court didn’t buy it.
🧾 Quick Primer: Who is the Executor in SA?
In South Africa, anyone over the age of 18 and mentally sound can be appointed as an executor of a deceased estate. If the deceased named someone in their will, that person becomes the testamentary executor. If not — or if the chosen person can't act — the Master of the High Court will appoint an executor dative, usually a family member or qualified professional.
The executor is the legally appointed person who winds up the deceased’s estate. Before they can act, executors must apply for Letters of Executorship from the Master — this is what gives them legal authority. If the estate is worth less than R250,000, a simplified process applies, and a Master’s Representative may be appointed with limited powers. Where an executor lacks expertise, the Master can require them to work with a professional to ensure the estate is handled correctly.
Their job? Collect assets, pay debts, and distribute what’s left according to the will or intestate succession law. Here’s how the process works:
Submit the Will and Death Notice to the Master of the High Court in the province where the deceased lived.
Apply for Letters of Executorship — without these, nothing moves.
Open an Estate Late Account at a bank.
Advertise for Creditors, prepare a liquidation and distribution (L&D) account.
Distribute the Estate once approved.
Until the letters are issued, no one — not even family — can touch a cent. That’s why this case is so alarming.
⚠️ Key Lessons We Must Learn
The executor is the only one authorised to administer estate funds. If you represent a client as an executor, don’t let banks or the Master’s delays derail your duty.
Banks are on the hook for paying out to the wrong person. This case reinforced that customers don’t have to anticipate fraud — that’s the institution’s job.
Fraud is getting smarter. Certified stamps, forged wills, POPIA excuses — if you’re helping clients with deceased estates, demand documentation transparency.
💼 For Accountants in Practice
You’re often the trusted advisor helping families through grief — and red tape. This case proves the system isn’t foolproof. And if banks are missing fraud with certified stamps and fake wills, it’s time to tighten your own processes too.
👀 Seen a similar estate misstep? Got tips to help others stay safe?
📣 Share your insights, tag @CIBA, and let’s keep our profession a step ahead.
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