Share

Absa should pay back R10bn, says Manyi

Cape Town – The money that Absa should pay back to the fiscus, following a preliminary report by the Public Protector, should in fact be R10bn – and not approximately R2.250bn, claimed Mzwanele Manyi, president of the Progressive Professionals Forum (PPF). 

“We really think this amount of R2.250bn (that the Public Protector mooted in a preliminary report) should be much more,” Manyi told Fin24 by phone. “Our estimates are that R10bn needs to be paid back. We’re hoping the full list of those implicated will be brought to book.” 

In the leaked report, Public Protector Busisiwe Mkhwebane stated that Absa did not pay the interest it owed the South African Reserve Bank (Sarb) following a financial bailout it had received some 25 years ago. 

READ: Absa decries leak of public protector report on apartheid billions 

Between 1985 and 1990, the Bankorp group of banks received assistance of R1bn that was extended to R1.5bn in 1991. Absa bought Bankorp in 1992, on condition that the Sarb assistance continues until the bad debt is cleared.

The Reserve Bank charged a variable interest rate of between 0% and 2% per annum on the loan. 

The Public Protector’s interim report was based on an investigation by UK company CIEX in 1997 which investigated claims that Bankorp had been offered R1.5bn under the pretext of a bailout. 

The leaked provisional report's remedial action includes that Absa should pay back R2.25bn to the fiscus in interest not previously paid. 

Public Protector may have 'misunderstood'  

Huffington Post, however, reported on Friday that Mkhwebane, may have erred in her report stating that Absa owes the fiscus money. 

“It appears that the public protector misunderstood the particulars of the agreement and has based her report on erroneous assumptions,” HuffPost SA’s Pieter du Toit said, citing a source intimately involved in the structuring of the agreement and transaction who said the interest charged at the time had been at the discretion of the Reserve Bank. 

Mkhwebane on Tuesday laid criminal charges with the police over the leaking of the draft Absa report to establish how the leak had occurred and who was behind it.

'Dark forces at play' 

The PPF’s Manyi said there are “dark forces” at play which, by leaking the report” are trying to “rubbish the contents thereof prematurely”. 

READ: Absa report leak may be politically motivated 

“We as the PPF say clean governance can’t be selective – it needs to be a blunt tool. All those who were involved in this decision (that Absa did not have to pay the interest it owed the Reserve Bank) and sought to defeat the ends of justice must be brought to book, whoever they are.” 

Meanwhile, former President Thabo Mbeki denied that government was responsible for having failed to recover the money from Absa, according to a Mail and Guardian report.

The report was based on the recording of an interview between Mbeki and former public protector Thuli Madonsela, where Mbeki allegedly called on her to talk to the governor and the finance minister instead.  

On Friday, the Thabo Mbeki Foundation spokesperson Mukoni Ratshitanga told News24 that they would respond straight to the public protector’s office.

READ: Stals opens up on Bankorp bailout 

The foundation said they had not yet received a copy of the report from any state organisation and would only be able to comment once they had seen the report.

The Council for the Advancement of the South African Constitution (Casac) said it was important to uncover the precise nature and details of the Bankorp/Absa deal and determine whether there was any present-day liability in respect of the deal.

“Corruption can never be excused or tolerated and once it is uncovered, it falls on those who have been vested with legal authority to investigate matters fully and take appropriate action. That is the transparency and accountability which the Constitution and the rule of law demands,” they said in a statement.

'Wait for the final report' - Judge

Judge Dennis Davis, who led an investigation between 2000 and 2002 into the Sarb’s role with regard to the financial assistance package to Bankorp, declined to comment on the leaked interim report on Friday. 

“All I can say is it’s unfair to everybody, including the public protector, because there’s going to be a final report and who knows what it’s going to say? 

“I wish everybody would just wait until a final report is forthcoming because on the final report everybody will be able to have their say in a much more intelligent way than presently is the case.” 

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.88
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.13
+0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders