Pityana calls for increased scrutiny of regulator's powers

BUSINESS leader Sipho Pityana has described the SA Reserve Bank's (Sarb’s) Prudential Authority (PA) as a rogue institution that places itself above the law.

- SIZWE DLAMINI

Pityana recently secured a major victory against the PA when it was found that it had unlawfully blocked his appointment to the Absa board.

“What was the basis for their objection? They never said I was unfit. The Reserve Bank first indicated they had issues with my nomination by suggesting I may not be a ‘fit and proper person’ — without ever formally asserting that I was implicated in harassment or any misconduct,” Pityana said.

“In fact, in all the court papers, they stated that they never asserted I was unfit or unqualified. They never actually said I wasn't a fit and proper person.”

The PA acted without legal justification, relying instead on informal, “back-room processes” to strong-arm the Absa Board into rejecting Pityana.

The PA had firmly defended its legality and conduct amid debates over its role in the appointment of bank executives.