Absa: We have paid back the money
Absa bank says it will approach the North Gauteng High Court to review the Public Protector's report into the apartheid-era bailout.
Busisiwe Mkhwebane has found Absa, and its predecessor, Bankorp, unduly benefitted from the R1.125billion Reserve Bank bailout.
She says Absa must now pay back the money.
But Absa spokesperson, Songezo Zibi says Mkhwebane misinterpreted the bank’s submissions during her investigation.
“We believe the Public Protector misconstrued our submissions which were made in February. We firmly believe we have met all our obligations to the Reserve Bank arising from the loan that was provideD to Bankorp between 1985 and 1995. These obligations were met by October 1995,” Zibi explains.
Absa believes the report by Judge Dennis Davis commissioned in 2000 reflected different findings.
“The report was commissioned by then Reserve Bank governor Tito Mboweni. It found that while the assistance provided to Bankorp was done in a manner that exceeded the powers of the Reserve Bank, Absa shareholders did not benefit from the loan,” Zibi says.
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Zibi says the report found that Sanlam policy holders and pension fund members were the beneficiaries of the Reserve Bank’s assistance.
“The report found that Absa had paid fair value for Bankorp and for that reason it found that there was no reason to ask Absa to pay anything beyond what it had already paid in October 1995.”