Parliament on Thursday announced it would take Public Protector Busisiwe Mkhwebane's controversial report on Absa on judicial review.
This after Absa and the South African Reserve Bank (Sarb) earlier announced they would both approach the High Court to have Mkhwebane's report reviewed and set aside.
The public protector released a final report on Monday regarding her investigation into the assistance provided by the Sarb to Bankorp between 1985 and 1995.
Bankorp was acquired by Absa in 1992.
Mkhwebane said the amount given to Bankorp Limited/Absa Bank belonged to the people of South Africa. She said failure to recover the "gift" resulted in prejudice to the people of South Africa as the public funds could have benefited the broader society instead of a handful of shareholders of Bankorp Limited/Absa Bank.
She then ordered remedial action, directing Parliament to effect a constitutional amendment to the powers of Sarb, from targeting inflation to promoting economic growth.
Parliament, in a statement, said it would initiate court action over Mkhwebane's controversial report.
"The public protector's remedial action essentially instructs a committee of Parliament to start a legislative process, prescribes to the institution on the policy that will inform the bill, the wording of the amendment of the Constitution's section 224 and directs what constitutional provisions must inform the legislative process of the bill".
"Parliament believes that the remedial action, which is binding in terms of the law, usurps the powers of the institution under the Constitution. Section 57 of the Constitution empowers the assembly to control its internal arrangements, proceedings and procedures."
To this end, Parliament confirmed it would turn to the courts to have the remedial action "set aside on the basis of its unconstitutionality".