SA bank note com­pany cir­cu­lates faulty notes

The Pak Banker - - Front Page -

PRE­TO­RIA: The South African Bank Note Com­pany, a sub­sidiary of the SA Re­serve Bank, has printed and cir­cu­lated large quan­ti­ties of faulty R100 notes bear­ing the sig­na­tures of cen­tral bank gover­nor Gill Mar­cus and her pre­de­ces­sor Tito Mboweni.

The de­fects on the notes were un­cov­ered in May this year, fol­low­ing an in­ter­nal in­ves­ti­ga­tion.

The Re­serve Bank and its print­ing sub­sidiary have tried to keep a tight lid on its find­ings, fear­ing a dis­clo­sure to the pub­lic could spook the mar­kets.

Re­serve Bank spokesman Hlen­gani Mathebula de­clined to an­swer ques­tions re­fer­ring to his pre­vi­ous state­ments in which he had said the cen­tral bank was sat­is­fied with the qual­ity of the notes.

Sources say the prob­lems with the print­ing ma­chines at the SABN were such that in June this year, the Re­serve Bank de­cided to have 80 mil­lion R100 notes printed by Crane Cur­rency's Swedish di­vi­sion. Crane Cur­rency is an Amer­i­can firm.

Fol­low­ing sev­eral in­quiries by The Sun­day In­de­pen­dent this week, the Re­serve Bank main­tained its cover-up. It could nei­ther deny nor con­firm the print­ing of the faulty notes and whether they were still in cir­cu­la­tion. The Sun­day In­de­pen­dent has seen one such note which is missing the flu­o­res­cent mark­ings that are in­vis­i­ble in nor­mal light, but are ev­i­dent un­der a UV beam.

De­spite the deaf­en­ing si­lence of the Re­serve Bank, The Sun­day In­de­pen­dent can re­veal that:

The scan­dal around the R100 notes is said to have been the main rea­son for the sus­pen­sion of SA Bank Note Com­pany man­ag­ing di­rec­tor Musa Mb­hele, who has been charged with fail­ing to main­tain qual­ity print­ing stan­dards.

He ini­tially fought his sus­pen­sion in the Labour Court, where he sought to in­ter­dict the com­pany from pro­ceed­ing with his sus­pen­sion and dis­ci­plinary hear­ing. Mb­hele was adamant that the in­ter­dict pro­ceed­ings did not need to be held in-cam­era, say­ing the need for se­crecy sur­round­ing the print­ing com­pany's af­fairs did not su­per­sede his right to a fair trial in open court. -PB News

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.