home Opinion, Politics Response to Tito Mboweni on rubbishing the Public Protector’s recommendations

Response to Tito Mboweni on rubbishing the Public Protector’s recommendations

By Magedi Jonas

Cde Tito,

Thanks for the input and a very informative post. Let’s take the opportunity to open the curtain for you as you seem too attached to your London bed and not willing to see, from the outside, the glorious light of revolution coming. We are fighting for total independence of our country and this will need men like you to tell the truth and nothing but the truth so that you don’t speak from the grave in attempting to correct lies.

Your post contains very worrying statements that can only leave young men like me concerned about your role as the former Reserve Bank Governor. Who were you really serving? You first label the report ‘the so-called ABSA bailout’ and even a fool can see that you are trying to reduce the call for ABSA to pay back the money as nothing but a ‘foolish’ act. If you wanted to be objective, you’d have avoided using words such as ‘so-called’.

You further reduce Michael Oakley to a ‘London’ secret agent who wanted to help ‘Africans’ and therefore his real intentions were doubted from that moment. Isn’t this laughable coming from a man who writes from London; works for Goldman-Sachs (a company that was fined $120 million, last year, for currency manipulation in the United States); and trusts London Investors and real supporters if not architects of colonialism and apartheid, but reduces Michael Oakley to nothing but a mere ‘London’ spy. Your work has earned serious respect in London Sir. Maybe we must call you the London Guy. You are loyal to those who put food on your table.

On the history of the Central Banks, please also add to your library the following:

1. The Creature from Jekyll Island by G. Edward Griffin; and
2. ‘Inside the South African Reserve Bank: Its Origins and Secrets Exposed’ by
Stephen Mitford Goodson – you know him very well and I’m sure that he’s disappointed to see you deliberately ignoring his advise.

The so-called facts that you’ve provided are nothing but Halloween Tales that seek to placate South Africans and instill ignorance in society so that no one should be critical about the Reserve Bank.

Please provide facts London Sir, not the self praising points you made:

1. Michael submitted the report he concluded in 1997 to Mandela and we all know that the CIEX report exists but here you are telling us you rejected Michael’s offer. Did the South African Government pay Michael Oakley anything for the work he did and if so, what do you mean ‘we rejected his offer’?

2. On point 6.3, 6.4 and 6.5 you seem to be filming your own nose in the movie you are producing. You are basically praising yourself and you forget that those who benefitted from the lifeboat, such as Remgro, rejected your appointment as the Governor till they were convinced that your stay in London made you a convert of neo-liberalism. Or do you want me to refer you to the biography of Anton Rupert where it states clearly that Mandela consulted Anton Rupert (the owner of Remgro which is ABSA shareholder) about your appointment and he rejected it till Chris Stals (the man who granted ABSA the bailout) agreed to travel with you to the British Queen’s palace. The rand lost over 50% of it’s value after your appointment. Eish it must have been sad to see that the currency doesn’t like a black color which is why you try to sound so white in order to prove to be a sound financial and banking expert. The report you are praising yourself for commissioning didn’t differ with Michael and Judge Heath on the questionable granting of ‘gifts’ to ABSA but had a different view on the process of recovering the money and you know what their limitations were: your terms of references or should I say, Rupert’s terms of reference?

Point 8 is a very concerning point London Sir. When you negotiated for the sovereign Constitution you entered into a COVENANT about the independence of the SA Reserve Bank. Who were the chief negotiators from business? Do you mean Harry Oppenheimer, Anton Rupert and Tiny Rowland? No wonder the brouhaha when the Public Protector merely suggested that the bank must also look at the socioeconomic issues as part of its role. If the independence of this bank is good for South Africans and the poor in particular, why are the rich worried about the improvement of the socioeconomic needs of the people? The Public Protector didn’t propose that the bank be nationalized or that shareholders like you be removed. She proposed that the bank should play a significant role, which you allege it already does, in protecting the social and economic needs of the people. What exactly do you find wrong there or is it because during your term at the Reserve Bank, together with Gill Marcus, you worked to ensure that the SARB is not open to public scrutiny to a point that you even commissioned the arrest of Goodson who was a whistleblower and exposed the evil work at Reserve Bank?

‘Let slip the dogs of imperialism on us’ should be our own slogan because we are facing a period where the comprador bourgeoisie is going all out to protect their imperial masters. You are suggesting there could be civil war for suggesting that the Central Bank must consider the socioeconomic needs of our people but don’t think that your two friends (Oppenheimer and Christo) who own wealth equal to 50% of the population are the instigators of civil war? Inequality and poverty are economic wars against the population. Thousands of people die everyday because of the economic crisis in the country.

And I write from South Africa.

Read Tito Mboweni’s full Facebook post below:


1) I am away on business, currently in London but on my way to Zurich and New York. As such, I have not seen the report of the PP on the allegations regarding the so-called bailout of ABSA and the role of the South African Reserve Bank.

2) I have read all the media reports but feeling disadvantaged by not having the report in my hands. I should find the report on the website of the PP. Looking for it as I write these notes. Thanks to today’s technologies.

3) For the record, I was Governor of the SA Reserve Bank from 1999-2009. I hope that I served in that position fairly and professionally. So I think but some amongst us might have a different view. That is normal in a democracy. I have absolutely no problem or issues with that.

4) Some amongst us might recall that when Julius Caesar was assasinated by his close confidantes, Mark Anthony stood up and said something like: “I come here to bury Caesar and not to praise him. He was my friend faithfull and just to me”. Towards the end of the tragedy, he, Mark Anthony said something like this:” Cry Havoc, Let slip the dogs of War”. As a result, civil war broke out and Brutus and his co-conspirators were chased away and annihilated. ‘Cry Havoc, Let slip the Dogs of War’! Let not the Dogs of War be unleashed upon our beloved and beautiful country. God forbid!!

5) So, here we are confronted by the PP report on the so-called ABSA “gift” by the SA Reserve Bank.

6) The facts:

6.1) The ANC waged an extremely successful campaign for financial sanctions against the Apartheid regime. By 1985, the regime had to declare a DEBT STANDSTILL. A very critical successful milestone. I personally participated in the campaign. I wish somebody had told me that the burden to deal with the consequences would one day fall on my shoulders. But as a cadre of the Movement, I took on the task.

6.2) Somewhere in 1998, a British bounty hunter came to us to say that there was a debt that the “boers” had to repay the new South Africa. HallelujaH! He produced to us documents that showed that ABSA was liable to pay back about R1.5billion with interest over the years. He in return would receive 10% as a fee for helping us retrieve these “stolen” monies. He came from an organization called CIEX based in London. He was a former agent of the British Secret Service. We were perplexed about why all of a sudden a former British secret service agent wanted to be of assistance to the democratic South Africa when in fact they, the British government had been friends with Apartheid South Africa. We listened and he went on to prescribe to us, Africans, how this would be done. We rejected his offer.

6.3) We agreed though that as soon as I became Governor of the SA Reserve Bank ( because that was in the plan ), I would institute an investigation into all these allegations.

6.4) As soon as I assumed the office of Governor of the SA Reserve Bank, I instituted an independent investigation headed by a Judge. It comprised of a panel of highly qualified people in economics, finance, accounting and political complexities, black and white with international expertise. Their report was also submitted to the PP. This report, it would seem, at reading the media reports, was ignored or might have been complex. I do not want to be judgemental.

6.5) On the basis of that repoart, and its recommendations, the matter was concluded. Yes, I must admit, that a different panel might have come to a different conclusion as these matters normally are the case. But to cast negative judgement on their genuine professional work is both ingenious and unfair. It might be impugning on their professional standing in their professions, society and capabilities.

7) Central banks are very important and sensitive institutions. One of their central tasks as central banks is to protect the stability of the banking and financial system of the economies in which they operate. To fulfill this mandate, central banks have to assess the negative impact of bank failures. This is a huge responsibility which must be approached with extreme care. Political considerations have to be considered, yes, but they must not be above all else. That is why political authorities entrust this responsibility ( central banking ) to an independent institution, the central bank. In a sense, the choice of who is Governor of a central bank is so key. Central Bank Governors are too powerful to be appointed Willy-Nilly! The process of their appointment must be thought through carefully and SERIOUS.

8) When we negotiated our Sovereign Constitution, we entered into a COVENANT about the independence of the SA Reserve Bank. It’s central objective was a long drawn negotiation process. It is unwise to try and change this at the slightest political provocation. It is a very serious matter for our beloved country. Please think carefully about this. I hope the PP has consulted widely about her proposals in this regard. One cannot just take this for granted. This is too fundamental to be treated this easily. The impact of any proposed changes are huge for our country. In any case, one requires a huge majority in Parliament to effect the suggested Constitutional changes which no Party in Parliament currently commands.

9) My suggestion is that all Political Parties must carefully discuss the ramifications of the PP’s recommendation in this regard.

10) As for the BANKORP lender of Last Resort Facility, people must calm down and study all the documentation before expressing any views. Bear in mind the fundamental need for banking and Financial Stability in our economy. I remain available to assist in the conversation if so requested. MeanwhiLe, do not Let Slip the Dogs of War on us. Be calm, dear South Africans. We cannot afford to destabilize our banking and financial stability.

11) I will respond to the PP’s report in due time. I don’t think that the PP’s report was meant to fuel political issues in this year of schizophrenic political tensions. She was just doing her job within the available capabilities. Stay calm. No heroics needed.

Kind regards


20 June 2017

The Royal Horseguards Hotel

PS: Sincere apologies for such a long posting which is controtrary to my view about short postings on Facebook”



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