Parliament to take Mkhwebane’s controversial ‘Absa’ report on review

Parliament says it will initiate a court application to have Public Protector Busisiwe Mkhwebane’s controversial report which recommended amendments to the constitution set aside.

This comes just days after Absa bank and its main shareholder Barclays Africa decided to approach the high court to have the report of the public protector that was released on Monday set aside.

The Reserve Bank has also indicated that it would go to court to review the public protector’s report.

In her report, Mkhwebane said government acted improperly by failing to act on a report by a United Kingdom-based asset recovery agency, CIEX, which was contracted 20 years ago to recover public funds and assets allegedly misappropriated during apartheid.

She said the SA Reserve Bank (Sarb) failed to recover more than R1 billion rand from Bankorp Limited/Absa Bank, which was part of billions advanced as an “illegal gift” to the Bankorp group.

Mkhwebane also recommended that the constitution should be amended to change the status and role of the Reserve Bank.

Parliament has since studied the report and indicated it would seek a judicial review.

“The Public Protector’s remedial action essentially instructs a committee of Parliament to start a legislative process, prescribes to the institution on the policy that will inform the bill, the wording of the amendment of the Constitution’s section 224 and directs what constitutional provisions must inform the legislative process of the bill.

“Parliament believes that the remedial action, which is binding in terms of the law, usurps the powers of the institution under the Constitution. Section 57 of the Constitution empowers the Assembly to control its internal arrangements, proceedings and procedures,” parliament said in a statement.