Marcus reassures on SA banknotes

2010-12-08 13:10

Johannesburg - South African Reserve Bank Governor Gill Marcus has reiterated the bank's "complete confidence" in the country's bank notes.

Speaking at the bank's ordinary general meeting (OGM) in Pretoria, Marcus also had a warning for both South Africans and those visiting the country.

"The bank continues to encourage South Africans to know their money and check security features, which can be found our website," Marcus said.

The managing director of one of the SA Bank Note Company (SABN), the bank's subsidiary which is responsible for printing banknotes for countries such as Namibia and Zambia, is currently on suspension and disciplinary action is being taken against him.

The disciplinary action comes after concerns with quality standards in the company's operations.

Marcus urged members of the public to approach authorities should they suspect irregularities with their money.

The bank recently had a national campaign to recall all R200 notes, to issue new ones with better security features. The old R200 note was reportedly easy to counterfeit.

Procedures have been tightened at the SA Bank Note Company and the suspended managing director is involved in a disciplinary process, Sarb governor Gill Marcus said.

"An acting MD is in place who has tightened procedures and implemented the necessary checks and balances to ensure that the company provides the consistent levels of superior service expected of it," she told the Sarb's ordinary general meeting in Pretoria.

Musa Mbhele was suspended in August.

"... the SABN was subjected to a rigorous review of all procedures and controls following my assumption of office as governor of the Bank at the end of last year," Marcus said.

She said the MD was suspended after the "uncovering of weaknesses" at the SABN. Senior deputy governor Xolile Guma had taken on the duties of the chairperson of SABN.

The Sunday Independent reported that Mbhele had allegedly been charged with failing to comply with quality standards in connection with the printing of Zambian kwacha and Namibian dollar notes.