Findings Of Mkhwebane Regarding The Money Pay Back By Absa

Busisiwe Mkhwebane is a South African Public Protector who finds the improper acting of State Government on the report given by Ciex, which is an asset recovery agency found in United Kingdom. It was contracted two decades ago in order to uncover the public funds as well as assets, which were illegally misappropriate at the time of apartheid government. She points out the unsuccessfulness of South African Government and Reserve bank in recovering more than R1.25 Billion from Absa, which was given as the illegal gift to Absa at the beginning of 1990.

Busisiwe Mkhwebane

Unpredictable loan amount for Absa Limited:

During the press meet in Pretoria, The Public protector informs that Absa and its predecessor Bankorp groups were unduly benefited from the bailout of South African Reserve Bank with an amount of about R1.125 Billion. She also recommends the SIU, special investigating Unit to recover the public funds from Absa and other bankorp groups. Furthermore, Mkhwebane explains media that improper action of Reserve bank and Government of South Africa to recover from ABSA BANK or Bankorp Limited an amount of about R3.2 Billion, which is mentioned on CIEX report. It is correctly estimated that the unlawful loan given to ABSA Bank/Bankorp Limited is R.1.125 Billion.

Project Spear:

  • The failure being faced by the government in uncovering misappropriate public funds, which were cited on the CIEX Report, which was referred to be Project Spear, was found to be not consistent with the duties that are imposed by the Constitution of section 195 that needs a high standard of professional ethics.
  • More than that, she has also added that people of South Africa has been Prejudiced by their state government, which fails to recover those huge sum of money. During the era of Apartheid Government between 1985 and 1995, Bankorp is provided with a sequence of bailouts through SARB with the intention to compensate illegal loans, which have threatened the survival of financial institution. One amongst the bailouts included is R225 Million per year for five year time period.
  • When CIEX has suggested SARB to recover Estimated Billions from ABSA at 1999, the government has failed to set up project Spear, even though paying bill for the investigation done by CIEX. She also said that the amount provided to ABSA belongs to South African People and the failure of government in uncovering the illegal gift results in discriminatory to the people because the funds need to benefit the wider society rather than being in the hands of Bankorp Shareholders.

What’s the remedy to be taken?

As a remedy, the Special Investigation Unit has to investigate the presidential proclamation R47 for the purpose of recovering the unlawful misappropriation of public funds of worth R1.125 Billion, which were offered to the Absa bank. Ciex is found to be in contract with Pretoria to help to investigate and uncover the public assets and funds allegedly committed at the time of apartheid regime. The government was paid with 600,000 British Pounds by the CIEX Limited for the services that were never utilized by the Government of South Africa. Right now, no evidence is also available regarding the steps taken to the favor of CIEX Report.