https://www.polity.org.za
Deepening Democracy through Access to Information
Home / News / South African News RSS ← Back
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

Mkhwebane grilled over Absa report


Close

Embed Video

Mkhwebane grilled over Absa report

Public Protector Busisiwe Mkhwebane
Photo by Reuters
Public Protector Busisiwe Mkhwebane

6th October 2017

By: News24Wire

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

Public Protector Busisiwe Mkhwebane received a grilling from opposition MPs on Thursday, with much of their queries and criticism relating to her controversial report on Absa, while African National Congress (ANC) MPs defended her.

In June Mkhwebane found that in granting financial aid to the apartheid-era bank Bankorp, the South African Reserve Bank had failed to comply with the South African Reserve Bank Act. Absa later bought Bankorp.

Advertisement

Mkhwebane ordered Absa to pay back the R1.125-billion that the Reserve Bank granted to Bankorp and also prescribed that Parliament change the Constitution to also include in the Reserve Bank's mandate that it must promote balanced and sustainable economic growth and ensure that the socio-economic well-being of citizens is protected.

Absa took the report on review, as did Parliament, and Mkhwebane decided not to oppose Parliament's review application.

Advertisement

"All you should do is resign," said Economic Freedom Fighters MP Sam Matiase when Mkhwebane appeared before the portfolio committee on justice and correctional services on Thursday. He said nothing could undo the damage the Public Protector had caused.

"You bungled the most crucial matter," he said, adding that the R1.125bn that Absa would have had to pay back could have been used to uplift the poor.

"It's a mistake of monumental proportions that you [made]."

'Disastrous legal advice'

ANC MP Loyiso Mpumlwana raised a point of order, saying Matiase was impugning Mkhwebane's character.

African Christian Democratic Party MP Steve Swart said when "the very same attacks" were made by ANC MPs against Mkhwebane's predecessor, Thuli Madonsela, he had raised similar points of order.

"We were overruled," Swart said.

Acting chairperson Charlotte Pilane-Majake said the point of order was sustained.

Democratic Alliance MP Glynnis Breytenbach called the Absa report shambolic.

"Who provided you with such disastrous legal advice? And as an advocate, why did you follow such advice?" asked Breytenbach, herself an advocate.

Swart joined Breytenbach in questioning the legal advice Mkhwebane received for the Absa report.

"We've been deeply shocked about the remedial action in the Absa case," he said.

'Honourable Public Protector, I'm here for you'

"The Reserve Bank is an issue still to be pushed," he said.

Before Mpumlwana asked his questions, he expressed his support for Mkhwebane.

"Honourable Public Protector, I'm here for you," he said.

"In certain cases, you touched a nerve of monopoly capital, and according to them you must be pushed out," he said.

"Honourable Mpumlwana, thanks for the support," responded Mkhwebane when she answered questions.

Lesson learnt

Mkhwebane said she didn't intend to issue an instruction to Parliament.

"The intention was to recommend that this (the Reserve Bank's role) needs to be looked into," she said.

She said she had learnt a lesson from the incident.

Mkhwebane said she didn't receive legal advice in drafting the report, which was done by senior investigators. Systems have since been put in place to ensure every report first goes through the legal team.

After the meeting, Pilane-Majake released a statement noting Mkhwebane's explanations regarding the Reserve Bank court action on her remedial action.

"The committee accepts her explanation that she had not meant to instruct Parliament to amend the Constitution, but merely recommending that [the issue] should be given the necessary attention. The committee is of the opinion that this flawed action should not overshadow attempts to investigate the role of the Reserve Bank in the reduction of poverty in South Africa."

 

EMAIL THIS ARTICLE      SAVE THIS ARTICLE

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options

Email Registration Success

Thank you, you have successfully subscribed to one or more of Creamer Media’s email newsletters. You should start receiving the email newsletters in due course.

Our email newsletters may land in your junk or spam folder. To prevent this, kindly add newsletters@creamermedia.co.za to your address book or safe sender list. If you experience any issues with the receipt of our email newsletters, please email subscriptions@creamermedia.co.za