Luxembourg Tax Authority Places FinTech Player MyBucks Under Liquidation

MyBucks, a FinTech company owned by JSE-listed Afristrat, has been placed under liquidation by the Luxembourg tax authority or l’Etat du Grand-Duché de Luxembourg.

“Whilst MyBucks had previously made representations in court in order to prevent MyBucks from being placed in bankruptcy, the court of Luxembourg has concluded the matter and upheld the bankruptcy application,” Afristrat informed investors on Wednesday.

“MyBucks has the right to appeal this matter and are considering their options in this regard.”

Afristrat added that the bankruptcy of MyBucks may have an impact on the company’s financials, of which the full extent is currently being determined, and which may have a material effect on the price of its securities.

Furthermore, the board of Afristrat has concluded an analysis of MyBucks regarding its financial position, which culminated in the realisation that the future prospects of MyBucks as an investment vehicle was unsustainable and would not provide any realistic turnaround value for Afristrat in the future.

Subsequently, Afristrat said its board commenced a strategic review to rebuild value from the remaining two assets in MyBucks, and recapitalise Afristrat, to rebuild its financial services and banking division.

“This led to the strategic shift away from MyBucks as the main investment of Afristrat.”

Global FinTech Player With South Africa Roots

The FinTech firm experienced exponential growth since its inception in 2011 and today has operations in nine African and two European countries. In June 2016, MyBucks became the first African focused FinTech company to be listed in Germany and started trading on the Frankfurt Stock Exchange.

Also read: MyBucks To Delist From Frankfurt Bourse And Selling Assets

The African FinTech firm was founded by South African-born Dave van Niekerk, through its brands GetBucks, GetBanked and GetSure offers unsecured consumer loans, banking solutions as well as insurance products to customers.

Also Read: MyBucks Probe Fingers Executives at VSS South Africa As Empire ‘Crumbles’

Executives at South Africa’s VSS Financial Services (VSS), a wholly-owned subsidiary of Frankfurt-listed Fintech and African banking group MyBucks, are in hot water after a probe fingered them into financial irregularities

MyBucks instituted a forensic investigation into dealings of VSS, which is now in the process of liquidation.

The company said it has recently received the forensic report from Kahamelo Forensic Services.

“The findings justify, in the opinion of the Board, that MyBucks should, together with other affected parties and stakeholders, consolidate their resources to bring justice to bear and to seek rectification from those individuals that the report clearly identifies as having prejudiced VSS and its stakeholders,” the FinTech firm informed investors on Friday.

“MyBucks believes that certain former directors and executives, as well as certain service providers, should answer for the clear lack of corporate governance, as well as financial mismanagement, accounting irregularities and failure to act in the best interests of the company and its stakeholders.”

MyBucks’s controlling shareholder, Afristrat Investment Holdings Limited, has agreed to collaborate in the process.