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ABSA rejects R1 billion bailout claim through Reserve Bank

The Amalgamated Banks of South Africa (ABSA) has rejected claims on Public Protector Advocate Busisiwe Mkhwebane’s finding that  Absa must repay over R1 billion the bank gave as a bail-out to Bankorp before it became part of Absa.

The Amalgamated Banks of South Africa (Absa) has rejected claims on Public Protector Advocate Busisiwe Mkhwebane’s finding

On Monday the Public Protector issued a full report on the task of the Bank before it changed its brand name. The bank bailed out Bankorp in the 1980s and 1990s.

ABSA also issued a statement saying “Absa has noted the Public Protectors’ Statement today regarding her investigation into the SA Reserve Bank’s assistance to Bankop between 1985 and 1995”.

“ABSA acquired Bankorp in April 1992. We have not yet received a copy of the report and we are urgently requesting the Public Protector’s office to send it to us, once we have read it we will consider our legal options including seeking a High Court review”.

“ABSA met all its obligations in respect of the loan provided by the SA Reserve Bank by October 1995. It is our firm position that is no obligation to pay anything to the SA government”.

In the meantime Advocate, Paul Hoffman says he didn’t ask the Public Protector to investigate the mandate of the Reserve Bank.

“She’s on a frolic of her own; it has nothing to do with the complaint. I’m sure that the Reserve Bank will successfully knock that particular finding on its head.”

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