German Michael Duerr, owns about 57.5% (100 000) of the total shares in the bank together with his family members. These shares are owned by people who do not live in South Africa.
The only privately owned reserve bank in the world, the South African Reserve Bank has come out guns blazing and vowed to challenge the Public Protector’s recommendations to change its mandate.
Advocate Busisiwe Mkhwebane has directed Parliament to change the Constitution to amend the powers of the Reserve Bank. Her recommendations come as part of her finding of CIEX report which accused abuse of benefiting from government bailout. Mkhwebane has ordered that Absa pays back R1.125 billion.
The Public Protector is proposing that the Reserve Bank’s primary task must be to promote balanced and sustainable economic growth in the republic while ensuring the socioeconomic wellbeing of the citizens is protected.
In a statement issued by the Reserve Bank just after Mkhebane dropped the bombshell on Absa, the Reserve Bank says that the proposal will strip it of its power to the value of the currency. Many questions have been raised previously about private ownership of the Reserve Bank.
“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 remedial action proposed will have a negative impact on the independence of the Reserve Bank,” read a statement issued by the bank on Tuesday.
It once emerged that one Reserve Bank shareholder, German Michael Duerr, owns about 57.5% (100 000) of the total shares in the bank together with his family members. These shares are owned by people who do not live in South Africa.