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SA Treasury to challenge Reserve Bank’s mandate

Deputy Minister of Finance Mr. Sfiso Buthelezi says on Monday that the South Africa’s Treasury is due to decide whether it will challenge a recommendation made by anti-graft watchdog to change the South African Reserve Bank’s mandate, a proposal that rocked markets.

SA Treasury to challenge SARB’s mandate

This comes after the Public Protector Advocate Busisiwe Mkhwebane revealed report detailing R1.125 billion bailout issued given by the Reserve Bank to the failed bank Bankorp before it becomes part of Absa bank.

Asked if Treasury thinks the Public Protector went beyond her mandate with the recommendation, Sfiso Buthelezi says: “We haven’t taken a view but as things stand now we are happy that the central bank has exercised its right by taking it for review.”

Mkhebane last week stated that the Reserve Bank has failed to uphold its mandate after rescuing the failed bank bankorp.

Her recommendations indicated that Absa bank should pay back the money, it is believed the money was issued as a loan.

Both the Central Bank and Parliament said last week they planned to mount legal challenges to the proposal.

While the Reserve Bank says it will the allegations in a high court case on the review of the reports.