Sipho Pityana calls for probe into SA Reserve Bank's independence after Absa debacle

“So we have a leadership of the Reserve Bank who are capable of being ordered around by Maria Ramos,” asks Pityana

- SIPHELELE DLUDLA

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 describes as "cosy relationships" between key figures in the banking sector.

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.

The court 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.

This ruling not only vindicated Pityana but also brought to light the opaque interactions between the regulatory body and external parties.

Pityana’s legal battle began when he 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 firmly denies.

The court's judgment, delivered by Judge Flatela Luleka, established that the PA had indeed overstepped its bounds by failing to follow established protocols, thus denying Pityana the opportunity to contest objections to his appointment.