Finance Minister Malusi Gigaba has announced that he will officially challenge Public Protector Busisiwe Mkhwebane\u2019s controversial report against Absa and the recommendation that the Reserve Bank\u2019s mandate in the Constitution be changed.<\/p>\n
According to Gigaba, Mkhwebane\u2019s report breaches the principal of legality and the findings of the report “were not adequately connected to the evidence before her”.<\/p>\n
Gigaba noted the decision was made after several consultations with\u00a0Mkhwebane 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.<\/p>\n
“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.”<\/p>\n
On 19 June, Mkwebane recommended the changes after finding that\u00a0the South African government was allowed to recover R1.125 billion in \u201cmisappropriated public funds\u201d given to Absa bank during the apartheid era.<\/p>\n
Mkwebane specifically requested that the Reserve\u2019s Bank\u2019s duties to the public be Constitutionally altered to better reflect the need for economic transformation in the country.<\/p>\n
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.<\/p>\n