Absa says it can't be held liable to repay loan, will challenge in court

Absa says it has instructed its lawyers to immediately approach the High Court in order to set aside the Public Protector's findings on a Reserve Bank bail-out to the value of R1.125 billion.

On Monday Public Protector Busisiwe Mkhwebane said that Absa bank and its predecessor Bankorp unduly benefited and that the Special Investigating Unit would have to recover the funds.

READ: A short history of the uncovering of the Absa/Bankorp ‘lifeboat’ scandal The bank earlier responded to the findings saying that while it is still waiting to study the full report, it doesn’t believe it owes the central bank any money.

Absa now says says there are numerous inaccuracies in the report.

Xolani Gwala spoke to the bank's spokesperson Songezo Zibi.

There are numerous misrepresentations and factual inaccuracies which are used as the basis for it's findings.

Songezo Zibi, spokesperson Barclays Africa Group Limited

The banks says the Public Protector has either ignored or misunderstood its submissions on the Bankorp bailout issue.

Th Public Protector has shifted the goal post form the initial report which had been premised on the alleged testimony of Dr Chris Stals, an alleged document which he produced which showed that Absa was liable to pay. That premise has been completely abandoned and a new reason is found based on information that was already available to the public protector at the time, but the Public Protector appeared to not believe that it was relevant.

Songezo Zibi, spokesperson Barclays Africa Group Limited

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Read More
A short history of the uncovering of the Absa/Bankorp ‘lifeboat’ scandal

A short history of the uncovering of the Absa/Bankorp ‘lifeboat’ scandal

The Money Show’s Bruce Whitfield interviews Noseweek Editor Martin Welz, the man who broke the story back in the mid-90s.

"The Public Protector has not ordered Absa to pay back the money"

"The Public Protector has not ordered Absa to pay back the money"

Advocate Paul Hoffman says Absa would have a difficult time suggesting Public Protector had no business considering the claim.

Absa must pay back the money - Gwede Mantashe

Absa must pay back the money - Gwede Mantashe

Mantashe also says that the Reserve Bank is within its rights to review Mkhwebane's remedial actions recommendations.

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Government acted improperly by failing to act on the CIEX report - Mkhwebane

The Public Protector has found that government and SARB failed to recover funds paid to Bankorp/ABSA.

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