Fin24

'Probe into Absa takeover needed'

2012-07-17 08:18

Johannesburg - President Jacob Zuma must appoint a commission of inquiry into Barclays bank's takeover of Absa Group [JSE:ASA] in 2005 and its link to the arms deal, activist and author Terry Crawford-Browne said on Monday.

"As a former international banker, I informed both the British and South African governments as early as October 1999 that the Barclays bank loan agreements for the (British defence company) BAE arms deal contracts would be fraudulent," he said in a statement.

"I also repeatedly pleaded with the former minister of finance Trevor Manuel not to sign those agreements."

He said the investigation should consider the implications of foreign control over South Africa’s banking system, including what pressure was applied to Manuel to approve the "ill-considered" takeover of Absa.

"The reality is that Absa, to the detriment of the South African public, has been milked by Barclays.

"Although Absa’s assets amount to only 4% of the total, Absa is reported to contribute 20% to total Barclays’ group revenue," he said.

"Surveys repeatedly find Absa to be the most expensive of South African banks. The former governor of the SA Reserve Bank noted as early as 2007 that he failed to see any benefits of Barclays' management at Absa."

Absa declined to comment on Crawford-Browne's claims, and presidential spokesperson Mac Maharaj could not be reached for comment.

Crawford-Browne said he had made a submission to the Seriti Commission - an arms deal probe - to request an investigation of perjury charges against Manuel and Maria Ramos in connection with the arms deal.

"Ms Ramos was then director general of the Treasury, and under oath, affirmed that the 'agreements... are self-standing loan agreements with binding force and not dependent on any other agreement entered into by government.'

"This lie was exposed by the Barclays bank loan agreements," he alleged.

He said he had previously submitted affidavits that detailed how BAE paid bribes of more than R1.5bn to secure its arms deal contracts, to whom the bribes were paid and to which bank accounts the bribes were credited.

The documents also revealed the complicity in money laundering of the British government and both international and South African banks.

He claimed that when a court awarded him with the discovery of the international offer's negotiating team and financial working group papers for the arms deal, Manuel and Ramos refused to comply.

"The court had previously rejected their arguments that it 'was not in the national interest to reveal how the government conducts its international financial arrangements'," he said.

"This is pertinent given enthusiastic approval by the minister in 2005 when Barclays Bank took over Absa with a 55.5% shareholding. What threats did Barclays Bank make?" he asked.

He said Human Settlements Minister Tokyo Sexwale was a major shareholder in Absa and a former director.

Ramos was appointed chief executive of Absa in 2009.

"Clear conflicts of interest are evident," Crawford-Brown said.

Comments
  • koos.vandermerwe.338 - 2012-07-17 08:42

    The simple way to make them pay is to have a run on ABSA.

      james.weather.9 - 2012-07-17 09:22

      Probe ALL the banks!!!! Find out EXACTLY how much they have defrauded there customers… Fine them ... And RETURN the stolen money to the victims of the crime !!!!!!!!!! And put those bloody idiots on trial ….

      don.richards.1044 - 2012-07-18 08:06

      Sadly Koos, you will also negatively affect the lives of thousands of innocent people who work at Absa and are NOT part of this. Why punish them for being employed there? I am sure you would thi9nk differently if you were employed at a bank as an ordinary employee. Secondly, such irresponsible action will affect thousands of people who bank at Absa and who's savings and investments are their sole source of income. So Koos, think wisely before spewing venim

  • The-Azanian - 2012-07-17 08:53

    Wait till nuclear tenders open, this arm deal saga will sound like everyday home affairs unlawful ID sale.

  • john.baptista.505 - 2012-07-17 09:32

    This man is spot on (Again). I am aware of the ways in which Barclays, and especially Barclays Capital bled ABSA dry by means of Internal resource and "recharge" costs on projects. It worked like this: Barcap would need to fund some development of internal infrastructure, and they would then palm this off to ABSA who has to pay Barcap Internal Resource costs of up to GBP1200 per day. This would be done under the impression that ABSA would benefit... Project costs were always >R20M as, obviously the London Cost base is extravagant (What would you expect from a corrupt guy named Diamond). In the mean time - the people that suffer is ABSA SA clients as their money is not spent on any real benefit to them. The other people that benefit are of course the Barclays shareholders and Bonus pool (Surprise). So - even though ABSA contributes 20% to Barcap Profits, they actually also sink a massive portion of their costs. In addition, the Local boys club (ABSA SB, Ned and FNB) stay in tact, and accordingly continue to charge the public and businesses extraordinary fees in world terms. This though, I can still stomach in that the Big 4 has real requirements to (1) act as a talent growth incubator for the SA economy and (2) Keep Central JHB from falling apart (3) other. But with ABSA not keeping their part of the deal - and in fact being very fast on the trigger towards local resources (Though the lie (d) about this) I am getting irritated that the ANC mess is infiltrating business SA..

  • john.radebe - 2012-07-17 10:06

    When politics get dirty, Tokyo Sexwale expressed his interest to \serve,\ now this. Why now? Is the timing right?

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