Gigaba forced to side with Reserve Bank against public protector: report
Finance Minister Malusi Gigaba is preparing to join the Reserve Bank in its review of Public Protector Busisiwe Mkhwebane’s report on the Bankorp bail-out.
According to a report by BusinessDay, Gigaba met with Mkhwebane last week to discuss the report, in an attempt to explore whether parts of it could be rescinded.
However, because the report is final, Gigaba has no option but to take the report on review if he did not accept the findings.
This means that while he is unlikely to disagree with Mkhwebane’s proclamation that the South African government is allowed to recover R1.125 billion from Absa bank, he is likely to object to Mkhwebane’s recommendations that the Reserve Bank’s mandate in the Constitution be changed.
According to the Reserve Bank, the public protector’s recommendation to change its mandate could wipe R138 billion from SA’s economy.
They noted that aside from already pushing the rand weaker with the recommendations in the first place, the changes would also lead to further ratings downgrades, and a subsequent removal from international indices, irreparably damaging an already strained economy.
Gigaba has until Friday, 7 July, to officially lodge his application.
Read: Public protector either ignored or misunderstood us: Absa
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