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Oatley slams Mboweni’s remarks in Public Protector’s Absa report

Former CIEX chairperson Michael Oatley has slammed former South African Reserve Bank (Sarb) governor Tito Mboweni’s remarks on Public Protector’s Absa reports saying its Unattractive.

Oatley slams Mboweni’s remarks in Public Protector’s Absa report

Mboweni has publicly criticized the Public Protector Advocate Busisiwe Mkhwebane following her reports that Absa should payback R1.125 billion bailout given by SA Reserve Bank from the apartheid government.

 

Mboweni said that a special team of experts, which was previously hired to probe the matter, hadn’t found it necessary to pursue it further.

According to reports  Oatley has disputed Mboweni’s version, saying that the findings of the team appointed by the Reserve Bank had in fact confirmed CIEX’s version that the Bankorp loan was illegal.

in the meantime, Parliament has joined Absa and the Sarb in their legal action against the Public Protector.

Mkhwebane wants members of Parliament to change a section of the Constitution that speaks to Sarb’s protection of the value of the currency. It’s a call which has been met with fierce criticism.

In her report released earlier this week, the Public Protector found the Reserve Bank failed to protect the public interest by bailing out Bankorp during the apartheid era and then did not recover the funds after Absa took over.

according to EWN Judge Dennis Daviswho chaired the Davis Committee of Experts that investigated the Bankorp bailout in 2000, says Mkwhebane’s Absa report could have huge implications as it says that all monies misspent by government must be recovered.

Judge Davis says Mkhwebane points to an international treaty signed by South Africa that says that government has an obligation to recoup money that has been shown to be wasteful expenditure.

Davis also says that while he has examined her report very closely, he does not find any fact or reasoning to change his finding that Absa should not pay any money to government.

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