Absa takes Busisiwe Mkhwebane's directive on Bankorp to the high court

Bruno Cirelli
Luglio 14, 2017

The bank says it is looking forward to airing "the facts" related to its apartheid bailout "Bankorp" case in court, after what it says are years of "baseless" allegations against it.

"Furthermore‚ since the debt has prescribed‚ the remedial action requires the SIU and the President to embark upon a process which is entirely irrational in the circumstances", Absa said.

Absa also says that by recommend that the President task the Special Investigating Unit (SIU) to investigate, Mkhwebane has overreached.

In a separate legal challenge to the Bankorp report instituted last week (likely to be consolidated with Absa's challenge), Gigaba said Mkhwebane had "disregarded" evidence presented by the treasury.

Ramos added that the SIU had in 1998 found no compelling reason to proceed with litigation to recover the money and that the panel of experts appointed by the then governor of the SARB deemed attempts to recover the money as unwarranted.

Ramos maintained that Mkhwebane's remedial action rested upon material errors of fact as Mkhwebane failed to appreciate the consequences of the manner in which the transaction was structured and that Absa had paid for the "lifeboat" when it acquired Bankorp. Absa also says the public protector has no jurisdiction to investigate it as the loan was given to Bankorp before her office existed.

The Office of the Public Protector came into being in 1995 and the debt dated back to the mid-1980s.

She says that the Public Protector never responded to this request and never provided the documents to Absa. Mkhwebane said she would not be opposing a court application by the Bank to have this aspect of her report set aside.

Her spokesperson, Cleopatra Mosana, would not comment on Thursday night.

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