Mngxitama calls for unity with Malema to occupy Absa

Leader of Black First Land First (BLF) and former EFF MP Andile Mngxitama has called for a truce with EFF leader Julius Malema on Tuesday.

Mngxitama called on his former comrade “to put non-essential differences aside”. This, he says, is so that they can occupy Absa bank and force it to pay back the money it allegedly stole from taxpayers during the apartheid era.

“@Julius_S_Malema it’s time to put non essential differences aside. Let’s all occupy @ABSA and force it to pay back the money.”

https://twitter.com/Mngxitama/status/821214699882684421

Mngxitama attacked Malema during his time in the EFF and ramped up the criticism after his expulsion from the party. His primary bone of contention with the party now is that it sided with the DA against the ANC after last year’s municipal elections.

The EFF has criticised Mngxitama in return, with EFF deputy leader Floyd Shivambu calling him an “untidy conman”.

Mngxitama has been calling for an investigation of Absa and other alleged illegal beneficiaries of state funds prior to 1994, chief among them billionaire Anton Rupert. Mngxitama alleges as much as R26 billion was plundered. He went to great lengths to get the previous public protector to focus more strongly on the matter (even her occupying her office at one point last year), but it appears the new public protector, Busisiwe Mkhwebane, is giving the matter her full attention.

In a leaked preliminary report of the public protector, which the Mail and Guardian claims to have seen, Absa could be forced to pay R2.25 billion to the fiscus for an “unlawful” apartheid-era bank bailout of Bankorp Limited, a bank that was acquired by Absa in 1992.

The matter has its roots in a 1997 investigation by Ciex, a United Kingdom-based asset-recovery agency headed by former UK intelligence official Michael Oatley. Oatley reportedly approached the South African government to investigate and recover public funds and assets allegedly misappropriated during the apartheid era.

Mkhwebane has sent the preliminary report to Absa and other implicated parties for further input before the final report is released.

Absa has acknowledged receipt of the report, which it said is “confidential”. The bank said in a statement that it’s regrettable the report was leaked before it could make further submissions.

“These documents pertain to, among others, due diligence performed by Absa prior to acquiring Bankorp. Bankorp started receiving SA Reserve Bank assistance in 1985. Absa acquired Bankorp in April 1992 at fair value. All the obligations pertaining to the SA Reserve Bank’s assistance were discharged in full by October 1995.

“It is regrettable that the Public Protector’s Report has been leaked before further submissions and finalisation because in its current form it perpetuates an incorrect view that Absa Bank Ltd was the beneficiary of undue SA Reserve Bank assistance.

“The Davis Panel of Experts appointed by former SARB Governor, Mr Tito Mboweni found that that Absa’s shareholders did not derive any undue benefit from the SARB’s intervention and as such no claim of restitution could be pursued against Absa. We emphatically agree with this position and attach the full Executive Summary of the Davis Panel Report for reference.

“It must be noted that the matters and events under investigation occurred during the period 1985 to 1995, 21 to 31 years ago. The testimony provided by current Absa senior executives to the Public Protector was based on records available to the bank’s current management as none of them have personal knowledge of events at the time.”