Barclays Africa must repay 1.1 bln rand over bailouts.

Record ID: 896453

  • Title: Barclays Africa must repay 1.1 bln rand over bailouts.
  • Date: 20th June 2017
  • Summary: JOHANNESBURG, SOUTH AFRICA (FILE) (REUTERS) VARIOUS OF PEOPLE USING ABSA MACHINES JOHANNESBURG, SOUTH AFRICA (APRIL 4, 2017) (REUTERS) JOHANNESBURG SECURITY EXCHANGE FINANCIAL INDICATOR DISPLAYING RATES INVESTED PER COUNTRY JOHANNESBURG, SOUTH AFRICA (FILE) (REUTERS) VARIOUS OF MONEY COUNTING GOLD BARS
  • Embargoed: 4th July 2017 09:16
  • Keywords: ABSA corruption apartheid currency Barclays Africa
  • Location: PRETORIA AND JOHANNESBURG, SOUTH AFRICA
  • City: PRETORIA AND JOHANNESBURG, SOUTH AFRICA
  • Country: South Africa
  • Topics: Currencies/Foreign Exchange Markets,Economic Events
  • Reuters ID: LVA0026M30QDP
  • Aspect Ratio: 16:9
  • Story Text: South Africa's rand fell more than 1.5 percent on Monday (June 19) after the Public Protector, an anti-graft watchdog, recommended constitutional changes to make the central bank promote economic growth rather than currency and price stability.
    Government bonds also weakened, with the yield for the benchmark instrument due in 2026.
    The comments from Public Protector Busisiwe Mkhwebane came in a statement delivered to a Pretoria news conference in which she delivered her findings into an investigation into an apartheid-era bailout of Barclay's Africa Group.
    In her recommendations, Mkhwebane said the constitution should be changed to state that the primary objective of the South African Reserve Bank (SARB) should be to promote balanced and sustainable economic growth.
    In her findings against Barclays, which trades under the name of Absa, Mkhwebane said the bank had unduly benefited from apartheid-era bailouts and must repay 1.125 billion rand ($87 million).
    She also said the government and the Reserve Bank had failed in their role.
    Mkhwebane said her investigation had found that the apartheid government breached the constitution by supplying Bankorp, which was acquired by Absa in 1992, with a series of bailouts from 1985 to 1995.
    Absa denied any wrongdoing. The bank's shares fell more than 2 percent in response.
    At the same event, Mkhwebane said she will oppose a bid by President Jacob Zuma to have a report on claims of influence-peddling by him and his government set aside, Public Protector Busisiwe Mkhwebane said on Monday.
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