Reserve Bank alleges Busi Mkhwebane colluded with Presidency

The Bank says Busisiwe Mkhwebane’s meeting with the Presidency two weeks before she released her report into the Apartheid Absa bail-out is suspicious.

The Reserve Bank of South Africa has filed a supplementary affidavit to have the report released by Public Protector Busisiwe Mkhwebane reviewed.

In the affidavit filed this week, the bank alleges that Mkhwebane colluded with the Presidency in order attack it.

On 19 June 2017, Advocate Mkhwebane released the findings of her investigation into what is called the “CIEX Report”.

According to the affidavit filed by the Reserve Bank’s Johannes de Jager, Mkhwebane wanted the Special Investigative Unit to amend its proclamation to include the Ciex report.

The Ciex Report, a 52-page investigative report, was compiled by Michael Oatleys and it shows how during the end of Apartheid money was taken from state coffers.

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She found that the Absa bank and its predecessor, Bankorp, unduly benefited from a Reserve Bank bail-out valued at R1.125 billion and that the government acted wrongly in not recovering the money.

She has since ordered the Special Investigating Unit to recover the funds but the Reserve Bank is opposing, calling for a review of the finding.

Mkhwebane is alleged to have had met the Presidency weeks before she released the report and the bank wants her to release the discussions held at that meeting between herself and the Presidency.

“The Public Protector was not frank about disclosing the fact of this meeting in the report,” said De Jager.

“This is a glaring omission,” he said.

The affidavit also alleges that Mkhwebane discussed potential remedial actions against the Bank’s failure to recover R1.25bn during this meeting as well as discussing changing the Constitution and the formation of a state bank..

“The fact that this topic was even discussed with the State Security Agency indicates that the public protector’s investigation was aimed at undermining the Reserve Bank,” Bloomberg quoted De Jager as saying.

(edited by MLM)

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