Bonds lose ground in line with jittery rand after public protector's statement

The report released by the Public Protector, a constitutionally-mandated watchdog in November, called for a judicial inquiry into allegations that Zuma, some cabinet members and some state companies acted improperly.

Public Protector Busisiwe Mkhwebane on Monday criticised government and the SARB for failing to recover more than one billion rand from Bankorp Limited/ABSA Bank billions advanced as an "illegal gift" to the Bankorp group, which was bought by ABSA in the early 1990s.

"Failure to recover the "gift" resulted in prejudice to the people of South Africa as the public funds could have benefited the broader society instead of a handful of shareholders of Bankorp Limited/ABSA Bank", she said.

ME says state capture is not a new phenomenon and everyone, including the Gupta family, should be investigated. Comrades who were in government when the CIEX report came out where defensive when it came to this matter.

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"The South African Reserve Bank (Sarb) is still studying the Public Protector's report on the loan granted to Bankorp and will thereafter announce its response to the findings and remedial actions", the bank said in a statement. The price was R1.23 billion and was paid directly to Bankorp shareholders which is why Absa should not be expected to pay again. Mkhwebane said Absa has paid some of the money back, but not the two decades' worth of interest that has accumulated.

Sections in the Constitution on the Reserve Bank must be changed to say its primary objective is to "promote balanced and sustainable economic growth" and to ensure citizens' "socio-economic well-being" is protected.

The Reserve Bank was not available to comment.

South African bonds weakened on Monday afternoon in line with the rand, which in turn, was affected by local political concerns.

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