South African Reserve Bank Investigation into African Bank

The South African Reserve Bank (SARB) recognises the importance of investigating the circumstances that gave rise to African Bank being placed under Curatorship on 10th August, 2014. It has therefore decided to institute a formal independent investigation in terms of section 69 (A) of the  Banks Act No. 94 of 1990., The Registrar of Banks has, pursuant to this decision, appointed Adv. JF Myburgh as Commissioner in terms of the said provisions with effect from 30th August  2014. He will be assisted by Vincent Maleka, SC, and Brian Abrahams. Notice to this effect will appear in the Government Gazette of 12 September 2014.

Advocate Myburgh will, among other matters, investigate the business, trade, dealings, affairs, assets and liabilities of African Bank. These duties will be performed as outlined in section 69 (A) of the Banks Act and in terms of sections 4 and 5 of the Inspection of Financial Institutions Act 1998 (Act NO. 80 of 1998)

The Commissioner is required to complete this investigation within a period of five months from the date of appointment. A written report will be required to be submitted within 30 days after the completion of the investigation. 
The report should indicate, among other things, whether or not:

1. it appears that any business of African Bank was conducted recklessly, negligently or with the intent to defraud depositors, other creditors or any other person for any other fraudulent purpose;

2. the business of African Bank involved questionable management practices or material non-disclosures, with the intent to defraud depositors or other creditors. Should this appear to be the case, the Commissioner should indicate whether any person party to such questionable practices has been identified.

Statement issued by Hlengani Mathebula, Head: Group Strategy and Communications, September 2 2014

Click here to sign up to receive our free daily headline email newsletter