In general, the banks are considered to offer essential role in assisting the economy of South Africa. A totally reversed situation takes place in this country due to white monopolists. The South African Reserve Bank (SARB) is favoring private banks instead of natives of the country. Moreover, the governor of South Africa Lesetja Kganyago confirms that banks are actively engaged in looting rather than taking care of South Africans. Busisiwe Mkhwebane who is a famous public protector of South Africa, has also described that SARB has failed to execute its constitutional duties. More than that, it seems to be unsuccessful in improving the financial support provided to ABSA at the time of apartheid. According the reports of CIEX, the conduct of SARB concerning with the ABSA bailout along with the practice of gaining illegal funds by plenty of banks at was haphazard with massive range of constitutional sections. Additionally, the ABSA bailout is also known to be disproportionately beneficiary. Former SARB director Stephen Goodson revels many fact to Sifiso Mahlangu in a talk show that says how SARB Decisions Being Heavily Influenced By The Top 4 Private Banks. He added “ABSA is Guilty and must pay back the money”.
His full speech can be seen at where he reveals many facts:-
Findings Carried Out By Public Protector
- It is revealed that both Government and SARB are offensive to recover the Rand 3.2 billion of public funds from ABSA.
- The R3.2 billion was hand over to ABSA during the apartheid period between 1986 and 1995 as an illegal contribution.
- Obviously, the people of South Africa were unconscious about the operation of South African reserve bank and African government, as they failed to recover the illegal contribution because they are offered with 600,000 euro in terms of their service fee.
- Many Top banks are involved in the same. Despite of adequate knowledge, the government also fails to implement CIEX report irrespective of paying for it.
- Even the finance minister has not thrived at following the lawful obligations. This creates doubts in minds of the people whether reserve bank is operating according to legal act of SARB.
- The reserve bank is foreign owned so public protector compiled a Report that is massively different from report of Mail and Guardian, which is released during this year.
- The state was long captured by the banks. It is evident that banks that are under Bankorp Group were enforced by ABSA to pay back Rand of 2.25 Billion.
- It is proved with perfect record that the government has offered ABSA bank with Rand 1.25 billion during apartheid age.
- The public protector is out maneuver by white capital. Therefore, the public protector wants to do investigation by getting help from special investigation group rather than directly asking money from them along with interest.
- Consequently, the special investigation unit also began to investigate on ABSA bailout and try to bring back the public funds.
- But, the ANC did not support for the public protector recommendations. However, ABSA has give money back but it fails to repay the interest rate.
- He conclude that we need a state bank to manage the issue and funds.