Johasnnesburg - Barclays Africa Group, the South African bank formerly known
as Absa, will go to the country’s high court to challenge a decision that it
should pay the government 1.125 billion rand ($86 million) over the
apartheid-era acquisition of Bankorp Ltd.
“This is due to numerous misrepresentations and factual
inaccuracies which form the basis of the Public Protector’s findings, and what
we submit are the irrational and unreasonable legal conclusions in the report,”
the Johannesburg-based bank said in a statement on Wednesday. “The
misconceptions and inaccuracies in the report are profound and damaging to
Absa’s reputation.”
Public Protector Busisiwe Mkhwebane said on Monday that
Barclays Africa unduly benefited from state support when it bought Bankorp from
its shareholder Sanlam Ltd. in 1992 after the central bank helped keep the
lender afloat. Absa paid 1.23 billion rand for company, which had received 1.5
billion rand in central bank loans. The amount represents the interest accrued
from the central bank’s loans, Mkhwebane said.
Read also: SA examines Barclays Africa over apartheid-era bailout
“We deny that Absa received 1.125 billion rand by way of
unlawful assistance,” said the lender, which is being asked to pay out an
amount equivalent to 8 percent of its annual profit. “We firmly maintain our
position that all of Absa’s obligations to the South African Reserve Bank were
met in full by October 1995.