Protector sought Malikane’s views on central banks
• But Malikane did not submit report on Bank lifeboat
Public Protector Busisiwe Mkhwebane has confirmed that she consulted Prof Chris Malikane — the controversial economic adviser to Finance Minister Malusi Gigaba — for her report on the Reserve Bank’s lifeboat for Bankorp, which was later taken over by Absa. Mkhwebane said in reply to a letter from DA finance spokesman David Maynier that as part of her investigation, she asked Malikane to prepare an expert opinion on the role of central banks globally.
Public Protector Busisiwe Mkhwebane has confirmed that she had consulted Prof Chris Malikane — the controversial economic adviser to Finance Minister Malusi Gigaba — for her report on the Reserve Bank’s lifeboat for Bankorp that was later taken over by Absa.
Mkhwebane said in reply to a letter from DA finance spokesman David Maynier that as part of her investigation into the lifeboat and the Reserve Bank, she asked Malikane to prepare an expert opinion on the role of central banks globally.
Malikane has called for the nationalisation of the Reserve Bank, though he has stressed the need for its operational independence. He has also called for a new economic plan that includes the expropriation of white monopoly capital establishments such as banks, insurance companies, mines and other monopoly industries to industrialise the economy.
Mkhwebane’s report on the CIEX/Absa matter recommended that Absa be made to repay the R1.2bn benefit it allegedly received from the lifeboat after taking over Bankorp and referred the matter to the Special Investigating Unit for investigation. She also recommended that the constitutional mandate of the Reserve Bank be changed from protecting the value of the rand to the protection of citizens’ socioeconomic wellbeing.
Her report has been challenged in the High Court in Pretoria by Absa, the Reserve Bank and the Treasury.
“Due to his tight schedule after his appointment as Minister of Finance’s economic adviser, Professor Malikane could not provide me with his expert opinion before the finalisation and publication of the report,” Mhkwebane told Maynier. “Accordingly, I did not receive any submission from Professor Malikane anytime during my investigation and I relied on internal research conducted by my office.”
Maynier said his question about the role of Malikane in the compilation of the report arose from concerns that he may have been one of the “hidden hands” behind the controversy surrounding the mandate of the Reserve Bank.
“I am pleased the Public Protector, Advocate Busisiwe Mkhwebane, has cleared up this matter and that Professor Chris Malikane did not end up making a submission on the role of the SARB,” Maynier said. “However, the decision to approach Professor Chris Malikane for an expert opinion of the role of the SARB was – in itself – questionable, given his controversial views about the role of the SARB. It was a bit like approaching Hugo Chavez for an expert opinion on the benefits of privatisation. Whatever the case, at least we now know that Professor Chris Malikane stayed out of trouble and did not end up making a submission on the SARB.”
Maynier highlighted a newspaper article that referred to court papers in which Absa lawyers Webber Wentzel accused Mkhwebane of with- holding submissions made to her on the Reserve Bank matter from the State Security Agency and Malikane. These submissions are believed to have influenced her findings.