Former SARB director backs Mkhwebane’s call for mandate amendment


Former director at the SA Reserve Bank, Stephen Goodson has defended Public Protector Busisiwe Mkhwebane’s initial call for a amendment to the banks mandate saying it does not serve the interests of the people but rather that of private banks.

Speaking during an in depth interview with host of Straight Talk on ANN7, Sfiso Mahlangu, Goodson lamented the need to expand the banks mandate which he believes has not benefited the majority of South Africans and the establishment of a state bank.

“Firstly the constitution has to be amended and a monetary reform bill has to be introduced which will create a state bank under the control of the Treasury,” he said.

Last week the public protector announced that she wont oppose a court challenge by the Reserve Bank, hoping to set aside her recommendations for a change to its mandate to focus on economic growth rather than the currency and price stability.

In her answering affidavit to the SARB’s review application said she believes that if left unchanged the banks mandate “could continue to enable decisions to be taken that prejudice the socio-economic interests of ordinary South Africans, including as to the realisation of full employment or job creation”.

According to Goodson the backlash that accompanied Mkhwebane’s recommendations was due to a regimen that says the Reserve Bank is beyond scrutiny.

“The banks do not want this matter discussed that’s why Advocate Mkhwebane was shot down in flames. There is a set regimen that says you cannot criticise the Reserve Bank and if you do you will encounter problems.”

Speaking during the ANC’s recently held policy conference the party’s Enoch Gondowana enforced this view saying the independence of the bank was “sacrosanct”.

“There is no intention whatsoever in the resolutions to tamper with that,” he said

Reserve Bank governor Lesetja Kganyago in his affidavit accused Mkhwebane of not understanding her role as Public Protector, and of being incompetent.

“The only explanation that the Public Protector has offered for her clearly unlawful conduct exposes her own lack of competency.”

However Goodson added that he was disappointed with the ANC for not giving Mkhwebane more support and that her proposed amendment has merit and should be discussed.

-TNA Reporter