Share

SARB seeks urgent court review to set aside Public Protector’s ‘unlawful’ action

Cape Town – The South African Reserve Bank (SARB) said Public Protector Busisiwe Mkhwebane’s remedial action seeking Parliament to change the Constitution regarding the bank's mandate to protect the value of the rand “falls outside her powers and is unlawful”.

“The Reserve Bank has been advised to bring urgent review proceedings to have the remedial action set aside,” the SARB said in a statement on Tuesday. “The Reserve Bank has resolved to do so.

"The Reserve Bank has consulted its legal team and has been advised that the remedial action prescribed by the Public Protector falls outside her powers and is unlawful.”

READ: Governor strikes back: SARB has duty to protect rand

Mkhwebane on Monday released a report on the alleged failure to recover R1.125bn in "misappropriated funds" in the Bankorp lifeboat investigation. She wants Absa, which bought the bank in the 1990s, to pay back the money. The bank has disagreed with this finding.

She ordered remedial action directing Parliament to effect a constitutional amendment to the Reserve Bank’s powers.

“This had an immediate and negative impact on the markets and the exchange rate of the rand,” the SARB said.

The rand slid by about 1.5%, breaching R13 to the dollar on Monday.

“The amendment would, if effected, strip the Reserve Bank of its key competency to protect the value of the currency and the well understood role that central banks play in securing price stability.

"The remedial action proposed will have a negative impact on the independence of the Reserve Bank.

“The Reserve Bank acts in terms of its constitutional mandate in the interests of the welfare of all South Africans.”

READ: Nhlanhla Nene defends Reserve Bank as a shining star in SA

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox

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
18.89
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
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