Absa approaches High Court on PP’s bail-out report

This follows this weeks claims that the bank owes R1.125bn for its role in the early 1990s Bankorp bail out.

On Monday PP Busisiwe Mkhwebane issued a final report stating Absa owed Government the money for its role.

Absa immediately approached the High Court to fight Mkhwebane’s claim.

“This is due to numerous misrepresentations and factual inaccuracies which form the basis of the Public Protector’s findings‚ and what we submit are the irrational and unreasonable legal conclusions in the report. The misconceptions and inaccuracies in the report are profound and damaging to Absa’s reputation‚” the bank’s JSE-listed parent‚ Barclays Africa‚ said in a statement.

“We have accordingly instructed our lawyers to immediately prepare an application to the High Court to have the report and its remedial actions set aside.”

“We deny that Absa received R1.125bn by way of unlawful assistance and we firmly maintain our position that all of Absa’s obligations to the Reserve Bank were met in full by October 1995‚” Barclays Africa said.

Bankorp collapsed in 1985‚ and in the ensuing bail-out the Reserve Bank sold it to Absa in 1992.

Reserve Bank is yet to issue a comment.

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