POLITICS

Why was African Bank report not referred to the NDPP? - David Maynier

DA says report found that the business of the bank was conducted negligently and recklessly, and that is why it should be given to NDPP

Why was the African Bank report not referred to the NDPP?

12 May 2016 

We welcome the release of the final report of the independent investigation, conducted by Advocate John Myburgh, into the collapse of African Bank.

The investigation was initiated by the former Governor of the South African Reserve Bank, Gill Marcus, on 30 August 2014. 

The final report of the independent investigation finds inter alia that: 

- there was no evidence the business of the bank was conducted with the intent to defraud depositors or creditors;

- the business of the bank was conducted negligently and recklessly; and

- the boards of African Bank Investments Limited and African Bank Limited were party to the conduct which led to the collapse of African Bank.

The fact that the final report of the independent investigation found that the business of the bank was conducted negligently and recklessly, raises the question why the final report was not referred directly to the National Director of Public Prosecutions, at the time it was completed in 2015?

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

I will, therefore, be writing to the Governor of the South African Reserve Bank, Lesetja Kganyago, requesting him to:  

- explain why, given the findings, the final report of the independent investigation into the collapse of African Bank, was not referred to the National Director of Public Prosecutions; and

- whether, given the findings, the final report of the independent investigation into the collapse of African Bank, will be now referred to the National Director of Public Prosecutions?

Issued by David Maynier, DA Shadow Minister of Finance, 12 May 2016