Mkhwebane’s image takes a knock

THE NORTH Gauteng High Court’s damning findings against Public Protector Busisiwe Mkhwebane on Friday in which her report and remedial action on Bankcorp-CIEX be set aside in its entirety is the latest blow to her credibility.

In the damning ruling, the court found that Mkhwebane did not understand her constitutional duty to be impartial and perform her functions without fear or prejudice after failing to disclose she had met with the presidency.

“She failed to report that she had a meeting with the Presidency on April 25, 2017, and again on June 7, 2017. She failed to realise the importance of explaining her actions in this regard, more particularly the last meeting she had in the Presidency. This last meeting is veiled with obscurity, if one takes into account that no transcripts or any minutes thereof have been made available. This all took place under circumstances where she failed to afford the reviewing parties a similar opportunity to meet with her,” the court ordered.

The court on Friday also ordered that Mkhwebane in her official capacity pay 85 percent of costs for the application by the SA Reserve Bank (Sarb) on an attorney and client scale and the balance should be paid in her personal capacity. This did not include the Treasury and the Minister of Finance as they did not request costs.

Cas Coovadia, the managing director of the Banking Association of South Africa, said on Friday that the court ruling came as no surprise.

Biased “It was clear that the public protector’s report was biased and with no substance,” Coovadia said, adding that Mkhwebane’s reputation had been tarnished following the court’s order that she pay a portion of the Sarb’s legal costs.

“It says that public servants action cannot be biased. Mkhwebane cannot release a report that is not backed by facts… We hope that there are lessons that can be learnt,” Coovadia said.

In the report, Alleged failure to recover misappropriated funds, released last June, Mkhwebane alleged that the government and the Sarb failed to recover the money from Absa, which acquired Bankcorp in 1993. In the report, she ordered that Absa pay back an R1.25 billion apartheid era bail-out for Bankcorp-CIEX Absa acquired in 1993. This prompted the Sarb, the National Treasury, and the Minister of Finance to apply for the court to review the report and have it set aside.

Chief investment officer at Cape Town-based Aeon Investment Management, Asief Mohamed, said the Public Protector’s personal reputation and credibility had been damaged by this ruling of the high court.

“The personal cost ruling of 15 percent of the Reserve Bank’s costs awarded against in her personal capacity further reinforces the view that the Public Protector did not apply due process,” said Mohamed.

Last June, the central bank submitted in court papers that Mkhwebane’s actions had “damaging and immediate consequences for the country in terms of investor confidence.”

Mkhwebane was also criticised for her report on the maladministration of the Vrede Dairy Farm in the Free State. Her detractor said the report had made no reference to the court papers filed by the National Prosecuting Authority’s Asset Forfeiture Unit showing that of the R220 million of government money given to Estina for the project, only R2m went to the farm itself.