Business In The News South Africa

Afribusiness welcomes High Court ruling on Reserve Bank mandate

JOHANNESBURG, August 15 – AfriBusiness has welcomed the court ruling that the South African Reserve Bank (Sarb) will maintain its mandate as per the Constitution.
This comes after the North Gauteng High Court on Tuesday ruled in favour of the Reserve Bank, setting aside Public Protector Busisiwe Mkhwebane’s remedial action which sought to change the mandate of the central bank.

In June, Mkhwebane ordered Parliament to amend the Reserve Bank’s mandate in the Constitution to focus on the socio-economic wellbeing of citizens, rather than protecting the value of the rand and focusing on economic growth.
Armand Greyling, law and policy analyst at AfriBusiness, said that the ruling would send a message to other government institutions not to interfere with the business of independent bodies.
“The Public Protector has effectively been put in her place and this should serve as a warning to other public bodies who attempt to meddle in the affairs of independent institutions,” Greyling said.
“We dare not find ourselves in a situation where a central bank can be commandeered and stripped of its independence and responsibilities to meet political agendas. We commend the Court’s decision and the Sarb for standing up to the Public Protector’s incorrect application of the law”
Reserve Bank Governor, Lesetja Kganyago, earlier also welcomed the High Court ruling.
“We welcome the judgement and I think we will let the judgement speak for itself. We have posted it [the High Court judgement] on our website and I have nothing further to say, other than to say we welcome the judgement,” Kganyago told journalists at the SARB in central Pretoria.

ANA

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