Report of the Commissioner, Adv JF Myburgh SC, in terms of s69A(11) of the Banks Act, 94 of 1990 PART ONEEXECUTIVE SUMMARYINDEX ContentsIntroductoryLevensteinThe directorsNon-executive directorsErnest & YoungThe Registrar of BanksThe ShareholdersRecommendations· The continuation of curatorship· Winding-up· Disciplinary steps· South African Revenue Services· Publication of this report· Seminars· Amendment of Banks Act· Criminal prosecutionPART TWOINDEXContentsThe period 1991 to 19971998• Resignation of Peter Springett• Levenstein chairman and CEO1999• Levenstein chair and CEO• Listing of Regal Holdings• First Mettle deals• Dismissal of Mark Springett• Interim results 31/8/19992000• Payments of R2m and R650 000 and agreement to allocate 5m Holdings shares to Levenstein• Corporate governance• Branding income dispute• The results of 16 May 2000• EY’s breach• The glossies• Interim results 13/08/00• Lopes/DT s7 review• Criticism of BSD• Harassment of Lopes• Holdings and the DT s7 report• More Mettle deals• Pekane2001• Corporate governance• 2001 audit/misrepresentations• EY at fault• Inaccurate DI returns• Events leading to curatorshipPART THREEINDEXEx parte:REGAL TREASURY PRIVATE BANK LTD (“Regal Bank”)Date: 15 November 2001IntroductoryChapter one• Levenstein: chairman & CEO• Lurie as chairman• Mark Springett• Peter Springett• Nhleko• Lubner• Lopes• Brian Levenstein• Schneider• Cohen• Cohen as chairman and Levenstein as CEOChapter two• Committees of the Holdings BoardChapter three• Regal Bank financed purchase of Holdings shares• Mettle structures- Impact on the balance sheet- Corporate governance- Tradequick and RVM- Regal Securities- RMI- Kgoro- Metshelf Structures- 93 Grayston & Stone Manor• Sempres transactionChapter four• Supervision by BSD- The evidence of the Registrar of Banks- The evidence of Martin- Levenstein as chairman- Springett/Lubner/Schneider- EY threat to qualify 2000 audited reports- Lopes- CuratorshipChapter five• Role of the External Auditors, Ernst & Youngo Statutory frameworko The 2000 Audit- Interim results- Materiality- Branding dispute- R2m payment to Levenstein- R6m deferred expenditure- “Deposits from other banks”- Failure of the board to approve the 2000 resultso The 2001 Audit- Misrepresentations to EY- Pekane- The 8m shares sold to Mettle- Metshelf 2 and 3 Structures- The recognition of branding income- Impact on 2001 Financial Results if EY adjustments were made- Impact on the 2000 interim results if EY adjustments were made• Criticisms of EY- 2000 Audit- 2001 Audit• Critique of 2000 and 2001 financial statements- The interim results of 21 August 1999- Results for 29 February 2000- The interim results for 31 August 2000- The results of 28 February 2001• Solvency of Regal Bank• Balance sheet of Regal BankChapter six• DT s7 review and Regal Holdings• Mismanagement of Regal Bank• Levenstein’s management style• Payments to Levenstein• Payments to friends and relatives of Levenstein• SASFIN bombing and other skullduggery• Importance of the share price• Share price manipulation​