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Reserve Bank takes legal action against Public Protector

Politics

Johannesburg – The South African Reserve Bank (SARB) has shot back at Public Protector Busisiwe Mkhwebane and is taking her to court on her decision that its powers be stripped.

The Reserve Bank said on Tuesday following its consultations with its lawyers on Monday after Mkhwebane released her report it has decided to challenge her findings.

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Public Protector Busisiwe Mkhwebane. Picture: Phill Magakoe/ANA Pictures

The Public Protector had recommended that Parliament amend the Constitution regarding the powers of the Reserve Bank.

She wants the SARB to promote economic growth than price stability and the currency.

Her report led to the fall of the rand by 1.5 percent with some of analysts and economists questioning her findings.

The SARB said Mkhwebane had no authority to intrude on its Constitutional functions.

“The SARB has consulted its legal team and has been advised that the remedial action prescribed by the Public Protector falls outside her powers and is unlawful,” it said.

“The SARB has been advised to bring urgent review proceedings to have the remedial action set aside. The Reserve Bank has resolved to do so,” it said.

It will address other issues at a later stage.

Mkhwebane was releasing her report on the lifeboat given to Absa, then known as Bankorp, by the SARB more than 25 years ago.

She wants the Special Investigating Unit to recover R1.25 billion from Absa.

Absa has also denied any wrongdoing on the bailout.

After she released the report the rand fell by 1.5 percent to R13 to $1.

The SARB also said on Tuesday Mkwebane’s decision shook the markets and caused the fall of the rand.

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