Cape Town - Absa has launched an application in the North Gauteng High Court in Pretoria to review and set aside the Public Protector’s Bankorp report, the bank announced on Thursday.
Public Protector Busisiwe Mkwhebane in June ordered Absa to pay back a bailout of R1.125bn that the SA Reserve Bank (SARB) granted to Bankorp, which was later bought by Absa, during Apartheid.
Mkhwebane said two investigations into the matter established that the financial aid given to Bankorp was irregular. She found that in granting the financial aid to Bankorp the SARB failed to comply with the South African Reserve Bank Act. Furthermore, she said the Ministry of Finance had a duty in terms of the act to ensure compliance by SARB, something she claims it failed to do.
The Public Protector also found that the government failed to adhere to section 195 of the Constitution by failing to promote efficient and effective public administration.