Mboweni ‘fired’ as Brics bank di­rec­tor

Business Day - - FRONT PAGE - 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.

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