The South African Reserve Bank said it would be bringing urgent review proceedings to set aside the remedial action recommended by the Public Protector, Busisiwe Mkhwebane.
In a statement on Tuesday, the Reserve Bank said after consulting its legal team it has been advised that the recommendations fall outside the powers of the Public Protector and was therefore unlawful.
On Monday, Mkhwebane released a report on the Alleged Failure to Recover "Misappropriated Funds" in the erstwhile Bankorp (now Absa Bank) lifeboat investigation.
She has ordered remedial action directing Parliament to effect a constitutional amendment to the Reserve Bank's powers.
The Central Bank said Mkhwebane's recommendation had an immediate and negative impact on the markets and the exchange rate of the Rand.
“The amendment would, if effected, strip the Reserve Bank of its key competency to protect the value of the currency and the well understood role that central banks play in securing price stability,” the Reserve Bank said.
“The remedial action proposed will have a negative impact on the independence of the Reserve Bank.”
“The Reserve Bank has consulted its legal team and has been advised that the remedial action prescribed by the Public Protector falls outside her powers and is unlawful.”
“The Reserve Bank has been advised to bring urgent review proceedings to have the remedial action set aside. The Reserve Bank has resolved to do so.”
“The Reserve Bank will address its other concerns with the report and evidential factual inaccuracies therein, at the appropriate time,” the SARB said.
