Absa disputes PP finding

Bank to correct ‘inaccuracies’ in report on apartheid-era bailout

ABSA yesterday said it would make “further submissions . . . to correct several factual and legal inaccuracies” in a provisional report by public protector Busisiwe Mkhwebane regarding an unlawful apartheid-era bailout.

It also said the leak of the report was “regrettable” and created “an incorrect view that Absa Bank was the beneficiary of undue assistance”.

The Mail & Guardian reported that the bank could be forced to repay R2.25-billion if Mkhwebane’s suggested remedial actions “remained unchanged”.

“The government‚ through the South African Secret Service represented at the time by Billy Masetlha‚ contracted Ciex to investigate large-scale looting of the state under the apartheid government‚” the newspaper said.

Masetlha was a former head of the National Intelligence Agency before being fired by then president Thabo Mbeki in 2006‚ while‚ according to the M&G‚ Ciex is a “covert UK asset recovery agency”.

Ciex probed how “R1.5-billion was offered to the Bankorp group of banks as a distressed bank ‘lifeboat’,” the paper reported.

Absa‚ which has until Monday to make submissions to Mkhwebane‚ said it will do so.

“These submissions will correct several factual and legal inaccuracies that are contained in the provisional report‚” spokeswoman Phumza Macanda said yesterday.

She said the bank has “fully cooperated” with the probe “since it began and will continue to do so”.

“Following an interview with senior executives of Absa in June last year, the public protector accepted – but never actually took it up – our written offer for her to inspect confidential documents in our possession pertinent to the successful finalisation of the investigation.

“These documents pertain to due diligence performed by Absa prior to acquiring Bankorp.

“Bankorp started receiving SA Reserve Bank assistance in 1985. Absa acquired Bankorp in April 1992 at fair value. All the obligations pertaining to the SA Reserve Bank’s assistance were discharged in full by October 1995.”

Macanda also said it was “regrettable the public protector’s report has been leaked as in its current form it perpetuates an incorrect view that Absa Bank was the beneficiary of undue SARB assistance”.

“The Davis Panel of Experts appointed by former SARB governor Tito Mboweni found that Absa’s shareholders did not derive any undue benefit from the SARB’s intervention and as such no claim of restitution could be pursued against Absa.” — TMG