Public protector tells Absa to pay back the money. Absa demurs
'We have waited seven years for this. We complained that not following up on the CIEX report was a waste of public money'
Public Protector Busisiwe Mkhwebane could face a legal challenge from Absa after ordering the bank to repay R1.125-billion that she claims was an “illegal gift” in the form of an apartheid-era loan. Yesterday Mkhwebane released a number of reports, including her findings on the controversial Ciex report. Mkhwebane found that the South African government breached its constitutional duty to spend public money wisely when it made no effort to act on the findings of the 1997-1999 Ciex report in which it was alleged that the Reserve Bank irregularly gave money to Bankorp — a predecessor of Absa. Absa has said it might go to court to contest Mkhwebane’s findings. “Absa has received the public protector’s report on her investigation into the Reserve Bank’s assistance to Bankorp between 1985 and 1995. We are studying the report and will consider our legal options, including seeking a High Court review,” the company said. “Absa met all its obligations in respect of the loan provided by the R...
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