Public Protector wants Absa to pay back the money
Public Protector Busisiwe Mkhwebane has found Absa and its predecessor, Bankorp, to have unduly benefitted from a South African Reserve Bank (SARB) bailout of R1.125 billion.
She briefed media this afternoon on four reports which included a report on the apartheid-era bailout.
Mkhwebane explained the matter related to misappropriated funds and assets, which saw money given as a lifeboat to Bankorp.
Bankorp was later bought by Absa.
She found government and the SARB failed to implement the CIEX report and recover the money.
"CIEX Ltd was paid 600 000 British Pounds for services which were never used by the South African government. No evidence could be found that any actions was taken specifically in pursuit of the CIEX report," says Mkhwebane.
Mkhwebane ordered the mater should be investigated by the Special Investigating Unit in an effort to recover the money.