Parliament to oppose protector’s Bank bid

Parliament has called the remedial action in Public Protector Busisiwe Mkhwebane’s report on the Bankorp lifeboat unconstitutional and will take it under judicial review so it can be set aside.

In her report, Mkhwebane in instructed Parliament’s portfolio committee on justice and correctional services to start a legislative process which would see the Constitution amended.

She wants the Constitution to be amended to ensure the mandate of the Reserve Bank does not favour big banks, but also takes into account the citizens of the country.

“Parliament believes that the remedial action, which is binding in terms of the law, usurps the powers of the institution under the Constitution,” Parliament said on Thursday.

“Section 57 of the Constitution empowers the [National] Assembly to control its internal arrangements, proceedings and procedures,” it said.

Absa and the Bank have also indicated they will also take the report on judicial review.

Mkhwebane announced the outcome of the Bankorp/Absa investigation on Monday.

She wanted the government to recover R1.125bn in public funds unlawfully given to Absa Bank, as cited in the controversial Ciex report.

The public protector said the government had failed to act on the Ciex report after paying £600,000 for it. This was inconsistent with its duties and amounted to improper conduct and maladministration.

Mkhwebane said claims that the government and the Bank had failed to recover R3.2bn from Bankorp and Absa, cited in the Ciex report and owed as a result of an “illegal gift” or lifeboat, were substantiated.