Gigaba to officially challenge the Public Protector’s Absa report in court
Finance Minister Malusi Gigaba has announced that he will officially challenge Public Protector Busisiwe Mkhwebane’s controversial report against Absa and the recommendation that the Reserve Bank’s mandate in the Constitution be changed.
According to Gigaba, Mkhwebane’s report breaches the principal of legality and the findings of the report “were not adequately connected to the evidence before her”.
Gigaba noted the decision was made after several consultations with Mkhwebane to better understand the findings. He noted that during these consultations, it became apparent that his concerns could only be practically addressed through judicial review proceedings.
“The Minister believes that the proposed Constitutional amendment is not necessary. The Constitution does not contemplate the protection of the currency for its own sake, but specifically in the interest of balanced and sustainable economic growth. These two objectives of the Reserve Bank are mutually supportive and reinforcing.”
On 19 June, Mkwebane recommended the changes after finding that the South African government was allowed to recover R1.125 billion in “misappropriated public funds” given to Absa bank during the apartheid era.
Mkwebane specifically requested that the Reserve’s Bank’s duties to the public be Constitutionally altered to better reflect the need for economic transformation in the country.
She wants the primary objective of the Reserve Bank to change from protecting the value of the currency, to ensuring the socio-economic well-being of citizens.
Read: Rand takes a hit after proposal to nationalise the Reserve Bank
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