Banks, Breaking News, Business, Public Protector, South Africa

ABSA must ‘pay-back’ the apartheid money! – Public Protector

ABSA (Barclays Africa Group) found to have benefited from apartheid era deals

According to the Public Protector Adv Busisiwe Mkhwebane ABSA (Barclays Africa Group ) unduly benefited from the apartheid-era loan bailouts and must repay 1.125 billion rand and the Special Investigating Unit is tasked with the mission to collect all the money back into government.

The bank denied any wrongdoing but still no comment from SANLAM the former owner.

Adv. Busisiwe Mkhwebane in January reopened a probe of Absa, a unit of Barclays Africa, following a wider report published last November by her predecessor.

She said on Monday that the probe had found that the apartheid government breached the constitution by supplying Bankorp, which was acquired by Absa in 1992, with a series of bailouts from 1985 to 1995.

Absa said in a statement it had not received a copy of the report and denied any wrongdoing, saying it “met all its obligations in respect of the loan provided by the South African Reserve Bank by October 1995.”

“Once we have read it we will consider our legal options including seeking a High Court review. It is our firm position that there is no obligation to pay anything to the South African government,” Absa said.

Shares in Barclays Africa fell 2.61 percent to 142.68 rand just after the announcement.

 

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