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Reserve Bank seeks review over Public Protector’s Findings

The South African Reserve Bank has confirmed that it will seek a review on court battle following the Public Protector’s findings.

Reserve Bank seeks review in court battle over Public Protector’s Findings

This follows a report issued on Monday by Public Protector Advocate Busiswe Mkhwebane saying the bank had failed in its duties to protect the public by not ensuring that ABSA Bank repaid an apartheid-era bailout given to failed bank Bankorp before it becomes part of ABSA.

MKhwebane says the mandate of the bank’s financial policy should change and that it should no longer focus on protecting the value of the currency.

According to EWN the Reserve Bank says that it will challenge the findings in court and it believes that her remedial action is unlawful and out of the scope of her powers.

The matter relates to funds misappropriated during the apartheid era and given as a lifeboat to Bankorp, which was later purchased by Absa bank.

This comes after Mtkhwebane publicly issued a report on the course which the Reserve Bank played a role as a lifesaver to Bankorp which subsequently become part of ABSA Bank.

Mkhwebane found the government failed to recover the funds.

“Whether the South African government and the South African Reserve Bank improperly failed to recover Absa/Bankorp an amount R3.2 billion cited in the CIEX report, the allegation is substantiated. The correct amount of the illegal gift granted to Bankorp or Absa is in an amount of R1.2 billion.”