{"id":80067,"date":"2017-06-20T17:31:24","date_gmt":"2017-06-20T16:31:24","guid":{"rendered":"https:\/\/buzzsouthafrica.com\/?p=80067"},"modified":"2020-05-21T13:23:58","modified_gmt":"2020-05-21T12:23:58","slug":"absa-apartheid-loan-saga","status":"publish","type":"post","link":"https:\/\/buzzsouthafrica.com\/absa-apartheid-loan-saga\/","title":{"rendered":"ABSA Apartheid Loan Saga: Here Are 5 Fast Facts You Need To Know"},"content":{"rendered":"
On Monday, Public Protector Busisiwe Mkhwebane released the findings of her investigation into what is called the ‘CIEX Report’ which has to do with the Absa apartheid loan saga.<\/p>\n
The report centred on her investigation into the SA Reserve Bank\u2019s assistance to Bankorp – a group that later acquired Mega-bank Absa – between 1985 and 1992.\u00a0The bailout, widely regarded in some quarters as a looting of the state was implemented after Bankcorp went bust.<\/p>\n
CIEX is a covert United Kingdom-based asset recovery agency headed by former UK intelligence official, Michael Oatley. In 1997, the firm\u00a0was contracted to investigate the allegations by the South African government through the South African Secret Service, (SASS). SASS’ representative at the time was Billy Masetlha.<\/p>\n
The CIEX report at the time was titled: Project Spear.<\/em> It investigated how the Bankorp group of banks received R1.5 billion disguised as a distressed bank lifeboat. In 1999, the firm recommended that Absa should\u00a0pay back the billions it received back to the Reserve Bank. The Mandela government paid Ciex for a period of six months amounting to 600,000 pounds, an equivalent of R10 556 972.40.<\/p>\n But the government and the Reserve Bank failed to ensure Absa paid the money, this is according to a preliminary report by the Public Protector.<\/p>\n <\/p>\n Advocate Paul Hoffman opened the case in 2011 at the office of the Public Protector, on behalf of the Institute for Accountability in Southern Africa, the parent body of Accountability Now.<\/p>\n Hoffman recently said he believes that it is still important to implement the CIEX report despite the fact that it happened a long time ago because the government’s failure to follow up on the report was not appropriate – not to mention the money spent on the investigation alone.<\/p>\n The Public Protector’s provisional report released in December 2016, upheld that Absa ‘unduly benefited’ to the tune of R1.25\u2011billion plus interest over two decades. She said the government and the Reserve Bank could have recovered up to R2.25\u2011billion from Absa but they failed the nation by not doing so.<\/p>\n Investigator Tshiwalule Livhuwani helped Mkhwebane in the investigation. This sentiment was re-echoed in her report published on June 19, 2017.<\/p>\n Batho Pele (People First) is a South African political initiative first introduced by former President Nelson Mandela Administration on October 1, 1997. The initiative was launched to facilitate a better delivery of basic goods and services to the people. The term, has, however, gained ground in the political sphere.<\/p>\n In this case, the government spent money on the ‘project spear’ but refused to implement the remedial action. It, in other words, didn’t place value on the money spent – which of course could have helped the people, if it was channelled to another people-centred project.<\/p>\n2. The Complaint Was Officially Lodged By\u00a0Advocate Paul Hoffman<\/strong><\/h3>\n
3. The Correct Amount Of The Illegal Bailout Granted Is R1.125 Billion<\/strong><\/h3>\n
4. Government’s Spending On The Report Militates Against The Batho Pele Principles<\/strong><\/h3>\n
5. The Case Has Been Referred To The Special Investigating Unit (SIU)<\/strong><\/h3>\n