Parliament to fight Busi’s Sarb directive

PARLIAMENT has confirmed it is drafting papers to challenge the decision of Public Protector Busisiwe Mkhwebane in court to force it to clip the powers of the South African Reserve Bank by amending the constitution.

This comes as Sarb Governor Lesetja Kganyago reiterated the constitutional mandate of the bank yesterday.

Releasing the Sarb’s annual report, Kganyago said the bank would stick to its constitutional mandate.

At the same time Parliament – one of the parties affected by the public protector’s report – said it would go ahead with its review application in the Western Cape High Court.

Moloto Mothapo, Parliament spokesperson, said they were drafting papers and would announce the dates as soon as the papers were ready.

In the annual report, Kganyago said the mandate of the Sarb remained unchanged.

He said the bank will continue to maintain price stability and protect the currency.

“This is what the Sarb has been doing and will continue to do,” Kganyago said.

Mkhwebane has defended her decision to order Parliament to clip the wings of the Sarb by getting the portfolio committee on justice and correctional services to initiate a process of amending the constitution.

Mathole Motshekga, committee chairperson, said last week they would await the instruction of Parliament on what to do.

This was based on the fact that the findings of the public protector are binding until subject to a review. Parliament joined the Sarb and Absa in challenging Mkhwebane’s decision.

The Sarb argued that Mkhwebane did not have the authority to change its constitutional mandate and that fell outside her mandate.

Absa also said it would take her report on review to pay back R1.25 billion on the bailouts it received from the Sarb more than 25 years ago.

At the time Absa was operating as Bankorp. The latter bank was eventually bought by Absa in the 1990s.