Exclusive: Judge Dennis Davis on why Absa wasn't ordered to pay back the money

CapeTalk/702's Stephen Grootes speaks to Judge Dennis Davis who in 2000 led a panel of experts on the investigations that that Bankcorp, Absa's predecessor, received a bailout during the apartheid era.

Recently, Public Protector Busisiwe Mkhwebane released her recommendation drawing on the same investigation saying that Absa should pay back over R1 billion that Bankcorp received.

On Wednesday, Absa released a statement that the findings of the Public Protector were flawed and that they will be approaching the courts to challenge the matter.

Read: Nothing stops the Public Protector investigating any conduct in state affairs"

We came to a conclusion that the structure of the lifeboat was illegal and certainly not best central bank practice.

Judge Dennis Davis

What we found was this, when Absa came to acquire Bankcorp...they did an evaluation of Bankcorp, which was essentially a bank in serious trouble. The only asset as it were, was this interest component from the lifeboat and they paid an overvaluation for the acquisition of Bankcorp.

Judge Dennis Davis

A transaction which was unquestionably in breach of the law, it would've been Bankcorp shareholding which is Sanlam. The problem by then was that Sanlam had been neutralised so where was one going to recover the money from?

Judge Dennis Davis, Chair at Davis Tax Committee

There's no doubt that it shouldn't have happened...

Judge Dennis Davis, Chair at Davis Tax Committee

Davis acknowledged that the Public Protector was right in quoting him that the lifeboat arrangement was in breach of the South African law.

He says recovering the money from Bankcorp's shareholders who at the time had already sold their shares was going to be legally impossible.

Read: Eusebius Opinion: Mkhwebane doesn't have power to amend the Constitution

So our advice unfortunately was that there was nothing that could be done about it.

Judge Dennis Davis, Chair at Davis Tax Committee

Read: Absa: Public Protector has not explained her different findings to Davis panel

Davis makes it clear that he is unable to understand how Busisiwe Mkhwebane came to a different conclusion to the panel.

To hear more of this interview with Judge Dennis Davis, listen below:


This article first appeared on CapeTalk : Exclusive: Judge Dennis Davis on why Absa wasn't ordered to pay back the money


Recommended

by THE NEWSROOM

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Zwane, a Gupta deployee who occasionally moonlights as Mining Minister: Brown

Zwane, a Gupta deployee who occasionally moonlights as Mining Minister: Brown

Political analyst Karima Brown also discusses Public Protector Busiswe Mkhwebane "working outside of her responsibilities".

Legal expert: No comparison between Madonsela and Mkhwebane recommendations

Legal expert: No comparison between Madonsela and Mkhwebane recommendations

Critics say Mkhwebane is overreaching in her proposal that Parliament change the Constitution to amend the Reserve Bank's mandate.

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.

Eusebius Opinion: Mkhwebane doesn't have power to amend the Constitution

Eusebius Opinion: Mkhwebane doesn't have power to amend the Constitution

Host Eusebius McKaiser says it isn't Public Protector Busisiwe Mkhwebane's place to try amend the Reserve Bank’s monetary policy.

"Nothing stops the Public Protector investigating any conduct in state affairs"

"Nothing stops the Public Protector investigating any conduct in state affairs"

Public Protector Busisiwe Mkhwebane says she intends to oppose President Zuma’s bid to have the state capture report reviewed.

[WATCH] Public Protector in the hot seat

[WATCH] Public Protector in the hot seat

Eusebius McKaiser talks to Busisiwe Mkhwebane about her final report released on Monday and her controversial recommendations.

Popular articles
Minister Zwane confirms trips to Dubai and Switzerland

Minister Zwane confirms trips to Dubai and Switzerland

EWN parliamentary correspondent Gaye Davis says Mineral Resources Minister Mosebenzi Zwane received detailed and tough questions.

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

The ANC treasurer-general confirmed Mantashe’s comments that the President did not consult the ANC leadership on the reshuffle.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

[CARTOON] Poephol With a Taste For Strife

[CARTOON] Poephol With a Taste For Strife

EWN's Dr Jack & Curtis take a look at the Spur confrontation that has taken the country by a storm.

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

"My earliest memory of money is my father saying, ‘Why do you want to do this thing? How are you going to feed the family?'"

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

5 advantages of leasing instead of owning a car (lower monthly payments!)

5 advantages of leasing instead of owning a car (lower monthly payments!)

Want (or need) a new car? Dale Scorer (a wealth manager at AlphaWealth) reckons you should consider leasing.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...