Johannesburg – Big four bank Absa says it is cooperating
with a Public Protector investigating around its purchase of Bankcorp.
In a statement issued on Friday, the company says
it is in receipt of a provisional report, but that this report may change materially
following further submissions.
This, it says, is because the provisional document
is “a confidential provisional document released to a limited number of parties
for comment and further input”.
Absa notes it has fully cooperated with the Public
Protector’s investigation since it began we will continue to do so.
“Following an interview with senior executives of
Absa in June 2016, the Public Protector accepted our written offer for her to
inspect confidential documents in our possession that are very pertinent to the
successful finalisation of the investigation. The Public Protector accepted
this offer in writing but never actually took it up. This offer remains open.”
Absa says the documents pertain to, among others,
due diligence performed by Absa prior to acquiring Bankorp.
Bankorp started receiving SA Reserve Bank
assistance in 1985. Absa acquired Bankorp in April 1992 at fair value. All the
obligations pertaining to the SA Reserve Bank’s assistance were discharged in
full by October 1995.
“We have written to the Public Protector informing
her that we accept her invitation to make further submissions in terms of the
Public Protector Act. These submissions will correct several factual and legal
inaccuracies that are contained in the Provisional Report. This will be done on
or before the deadline of February 28.”
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Absa also notes it is regrettable that the Public
Protector’s Report has been leaked before further submissions and finalisation
because, in its current form, it perpetuates the incorrect view that Absa Bank was
the beneficiary of undue SA Reserve Bank assistance.
“The Davis Panel of Experts appointed by former
SARB Governor Tito Mboweni found that that Absa’s shareholders did not derive
any undue benefit from the SARB’s intervention and as such no claim of
restitution could be pursued against Absa. We emphatically agree with this
position and attach the full Executive Summary of the Davis Panel Report for
reference.”
The full Davis Panel Report can be accessed here.
Absa adds it must be noted that the matters and
events under investigation occurred during the period 1985 to 1995, 21 to 31
years ago. The testimony provided by current Absa senior executives to the
Public Protector was based on records available to the bank’s current
management as none of them have personal knowledge of events at the time.
The bank notes it will not provide running public
commentary on the provisional report until it has been finalised and published.
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