Report of the investigation into collapse of African Bank referred to the NDPP

18 May 2016

We welcome the fact that the final report of the independent investigation into the collapse of African Bank, conducted by Advocate John Myburgh, has now been referred to the National Director of Public Prosecutions.

On 13 May 2016 I wrote to the Governor of the South African Reserve Bank, Lesetja Kganyago, requesting an explanation as to why, given the finding that the business of the bank had been carried out recklessly and negligently, the final report had not referred to the National Director of Public Prosecutions.

Replying to the letter on 17 May 2016, Dr Johann De Jager, General Counsel for the South African Reserve Bank, confirmed that: 

“…the South African Reserve Bank has considered the report of Adv. John Myburgh SC and in light of the findings therein elected to forward it to the National Prosecuting Authority for its decision in the matter regarding any possible criminal prosecution.”

The Banks Act (No. 94 of 1990) is clear: if any business of the bank was carried out recklessly or negligently, the report should have been referred directly to the National Director of Public Prosecutions.

Why the South African Reserve Bank seemed to think referring the final report to the National Director of Public Prosecution was optional will have to be probed when the South African Reserve Bank appears before the Standing Committee on Finance in Parliament.

Issued by David Maynier, DA Shadow Minister of Finance, 18 May 2016