Business Day

Mboweni ‘fired’ as Brics bank director

- Carol Paton Deputy Editor

Former South African Reserve Bank governor Tito Mboweni has been removed from the board of directors of the New Developmen­t Bank — commonly known as the Brics bank — after two years.

Mboweni posted on Facebook on Wednesday that he had been “fired” but that “it’s ok”.

He said: “They are the government of the day after-all. They can do as they wish.”

The bank was establishe­d by the Brics countries in July 2015 with a nonexecuti­ve director from each member country. Its objective is to fund infrastruc­ture projects in member countries and the emerging world.

At the time, it was seen as an alternativ­e to the World Bank and IMF. Nonexecuti­ve directors were appointed for a two-year renewable term.

Mboweni was appointed by former finance minister Nhlahla Nene — his appointmen­t was approved and announced by the cabinet. His removal took place through a telephone call from a government official last week and was not announced in last week’s cabinet statement. Spokesman for Finance Minister

Malusi Gigaba, Mayihlome Tshwete said that Mboweni’s term had ended and that it had always been the intention to place a top department­al official in that role.

The intention was to place Treasury director-general Dondo Mogajane on the board as SA’s representa­tive.

The nonexecuti­ve directors of the four other member countries in Brics are all top government officials who are part of their treasuries.

In his Facebook post, Mboweni said that he was “removed by the South African government as a nonexecuti­ve director of the Brics bank last week.

“They have their own logic and reasons for doing that.

“I served for two years and at the time of my appointmen­t I was told, via a letter from minister Nhlanhla Nene, that the term was a renewable one.

“But alas, this has not been the case. Fired, you might say!!”

Mboweni recently resigned as a director of PPC, a move on which he has not commented.

 ??  ?? End of term: Tito Mboweni has been removed from the board of directors of the New Developmen­t Bank.
End of term: Tito Mboweni has been removed from the board of directors of the New Developmen­t Bank.

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