JOHANNESBURG - South Africa’s central bank has accused Public Protector Busisiwe Mkhwebane of abusing her power in a legal battle over a report she wrote condemning its handling of a 1980s-1990s bailout.
Earlier this year, Mkhwebane said in a report the country’s then government and the South African Reserve Bank (SARB) failed to recover an apartheid-era loan of R1.125 billion made between 1985 and 1995 to Bankorp Limited, which was subsequently bought by Absa Bank.
Mkhwebane said her office's investigations had found that the white minority government of the time breached the constitution by supplying the loans. Absa, a subsidiary of Barclays Africa Group, denies any wrongdoing.
The central bank has also defended its actions at the time, saying if Bankorp had failed, this could have triggered a run on banks, with detrimental effects on the country’s entire financial system.