Mboweni on the hook for R1m

2008-11-25 13:00

Johannesburg - SA Reserve Bank shareholder Mario Pretorius has demanded R1m from its governor, Tito Mboweni, for alleged defamation, he said on Tuesday.

Pretorius said his lawyer had sent a letter of demand to Mboweni's lawyers "regarding the incident at the 88th AGM [annual general meeting] of the Reserve Bank, wherein I requested an apology for his accusation that I spoke to him in a racist manner".

"This is a notice in terms of section three of Act 40 of 2002, delivered yesterday [Monday] to the legal department of the SARB [SA Reserve Bank]. The return date is 28 December 2008," said Pretorius.

In the letter, Pretorius accuses Mboweni of character defamation at the bank's September 18 annual meeting.

Pretorius twice told Mboweni he wanted to bring a point of order to the meeting, and when he was not acknowledged said "shocking", which prompted the governor's response.

"I shall not permit you to talk to me like whites used to talk to blacks," Mboweni reportedly replied.

After the meeting, Pretorius demanded an apology from Mboweni, failing which, he threatened to take legal action. Mboweni did not apologise.

The latest letter of demand states: "As a result of the publication of the unlawful statement, made by the honourable governor, our client has suffered damages to his reputation, dignity and personae in an amount of R1m.

"Mr Mboweni had at all material times acted within the course and scope of his employment with the Reserve Bank.

"Consequently we hereby, in accordance with our instructions, demand payment from both Mr Mboweni and the Reserve Bank jointly and severally within 30 days... failing which we will proceed with legal action against yourselves."

According to the letter Pretorius is a "reputable businessman on a national level" with an "untarnished reputation".

"Our client greatly relies, in his business dealings, on such reputation as many of his business relationships depend on good faith between the parties."

The exchange between Pretorius and Mboweni at the meeting received wide media coverage, read the letter.

"The utterance by the governor therefore had publication on a national scale... The individual publications in which the statement appeared and were reported upon are too numerous to mention and we reserve the right to elaborate in due course."

Mboweni's spokesperson, Samantha Henkeman, confirmed that his legal department had received the letter.

- Sapa

- SAPA