‘Absa, pay back the money’
BLACK Land First (BLF) has given South African bank Absa a five-day ultimatum to abide by the public protector’s report on its benefits from an apartheid-era deal or face the wrath of the organisation.
Yesterday, advocate Busisiwe Mkhwebane’s findings into the CIEX report, a 52-page document drawn up by former British intelligence officer Michael Oatley, found Absa was liable to pay back R1.125 billion for benefiting in a deal regarding the acquisition of Bankcorp.
Mkhwebane recommended that the Special Investigative Unit recover the money from the bank with the assistance of the Reserve Bank.
The CIEX conducted the investigation in 1997, following the request of the SA Secret Service into banks that were given “lifeboats” by the country’s central bank.
Reacting to the findings, BLF leader Andile Mngxitama said his organisation, which has been calling for Absa to be held accountable for the funds, has been vindicated.
“From the beginning, BLF has said there was a systematic looting under apartheid that continues post-1994 because of white monopoly capital,” Mngxitama said.
He added that by their calculations, Mkhwebane had undercalculated: “Including interest, Absa should pay back about R9bn. Pay back the money and not waste our time. The findings are lenient,” he said.
Despite this, he said a good precedent had been set by Mkhwebane, adding more companies and individuals would now be forced to repay stolen money.
The BLF has threatened to embark on a campaign to force Absa to comply with Mkhwebane’s recommendations, adding it would lobby people and businesses to cancel their accounts with the bank.
Mngxitama said they were giving the bank until Friday to declare that they would pay back the money.
Meanwhile, the ANC Youth League also expressed delight in the findings, saying they would monitor the process and exert pressure where needed.
The Umkhonto weSizwe Military Veterans (MKVA), who have been vocal on the matter, said the bank should repay the money so it could be used for education.
MKVA president Kebby Maphatsoe said: “This is the arrogance of white monopoly capital and they know they did something wrong but still want to defend it. Whether they take it to the courts, it’s fine, but we are happy the public protector exposed the crime at Absa.”
Briefing the media at her office, Mkhwebane criticised the government and Reserve Bank for failing to recover the billions of rand from the Adcorp/Absa deal, saying their actions constituted “improper conduct and maladministration”.
“The allegation of whether the South African government and the Reserve Bank improperly failed to recover from Bankorp Limited/Absa Bank an amount of R3.2bn cited in the CIEX report, owed as a result of an illegal gift given to Bankorp Limited/ Absa bank between 1986 and 1995, is substantiated,” Mkhwebane said.
“The conduct of the government and the Reserve Bank goes against the ethos laid out in the preamble of the constitution and section 195 of the constitution in respect of redressing social injustices and promoting efficiency.”
However, Absa is adamant it has done nothing wrong.
The bank said it had met all its obligations regarding the loan offered by the Reserve Bank 22 years ago.
“It is our firm position that there is no obligation to pay anything to the SA government,” the bank said, stating it is willing to go to court to get a ruling on the matter.
The Reserve Bank said it was still studying the public protector’s report on the loan granted before it could announce its response.
One of the other suggestions Mkhwebane had on the Absa matter was that the section of the constitution which deals with the role of the Central Bank be revised by the portfolio committee on justice and correctional services.
One of the amendments would include changing Section 224 subsection 2 to remove power from the cabinet, through the finance minister, in relation to the Reserve Bank.
Constitutional expert Professor Shadrack Gutto said by recommending the amendment of the constitution, Mkhwebane was overreaching the powers of her office.