Reserve Bank warns public protector’s recommendation undermines its role

THE South African Reserve Bank has warned that the call by Public Protector Busisiwe Mkhwebane to amend the constitution will undermine its role to ensure financial and economic stability.

It said her report had harmed the economy and the rand, with a possibility of further credit rating downgrades.

In an application in the Gauteng High Court, Pretoria, yesterday, Reserve Bank governor Lesetja Kganyago urged the court to stop Mkhwebane in her tracks before further harm was done to the economy.

He described the report by Mkhwebane “as gross overreach” and warned that the public protector did not have powers to direct Parliament to amend the constitution.

“The public protector’s remedial action must be set aside.

“From the moment it was announced, it has had a serious and detrimental effect on the economy and for as long as it remains in place it holds the risk of causing further rand depreciation, further ratings downgrades and significant capital outflows.”

After Mkhwebane’s findings were released, the rand lost 2% of its value. Kganyago also accused Mkhwebane of not giving the bank an opportunity to respond to her report.

Mkhwebane was supposed to give the bank the report five days before she released the report, but she did not do it, Kganyago said.