Potential misconduct at reserve bank unearthed

FORMER Absa board member Sipho Pityana has raised serious concerns regarding the independence of the South African Reserve Bank (Sarb), urging for a formal investigation into what he described as “cosy relationships” between key figures in the banking sector.

- SIPHELELE DLUDLA

Pityana's remarks come on the heels of a Pretoria High Court ruling that has cast doubt on the conduct of Sarb's Prudential Authority (PA) during his controversial nomination process as chair of Absa Bank in 2021.

It found that the PA acted unlawfully by adopting an informal process to review Pityana’s nomination, as prescribed by the regulations in place under the Banks Act.

The ruling vindicated Pityana and exposed opaque interactions between the regulatory body and external parties.

Pityana sought a declaratory order against the PA, claiming they had operated outside the legal framework established for such considerations.

The PA controversially consulted with third parties regarding his suitability for the chairperson role, particularly following inquiries into his resignation from AngloGold Ashanti amid allegations of sexual harassment - claims he denied.