Keep calm and respect the Reserve Bank‚ says Mboweni

Former Reserve Bank governor Tito Mboweni has said that any changes to the bank’s mandate could have huge implications.

He called for calm after public protector Busisiwe Mkhwebane proposed such an amendment on Monday.

“I hope the PP has consulted widely about her proposals in this regard. One cannot just take this for granted. This is too fundamental to be treated this easily‚” Mboweni said in a Facebook post.

“The impact of any proposed changes are huge for our country. In any case‚ one requires a huge majority in Parliament to effect the suggested Constitutional changes which no Party in Parliament currently commands.”

Mkhwebane’s report revolved around a bailout granted by the Reserve Bank to apartheid-era bank Bankorp‚ which was bought by Absa.

Mkhwebane recommended that government take legal action to recover R1.125-billion in public funds unlawfully given to Absa.

But it was her statement around the Reserve Bank’s mandate that raised eyebrows.

Mkhwebane said she would approach parliament regarding a constitutional amendment to adjust the Reserve Bank’s mandate to include enhancing South Africans’ socioeconomic conditions.

Mboweni was Reserve Bank governor during the time when the Absa allegations were brought to authorities’ attention.

He said he was travelling abroad and had yet to study the report.

However‚ he did not believe that Mkhwebane had any ulterior motives.

“I will respond to the PP’s report in due time. I don’t think that the PP’s report was meant to fuel political issues in this year of schizophrenic political tensions. She was just doing her job within the available capabilities. Stay calm. No heroics needed‚” Mboweni said.