South Africa: Gordhan Acts Against Bank Rebels

source: allAfrica
Business Day (Johannesburg)
Mariam Isa
4 May 2010

Johannesburg — FINANCE Minister Pravin Gordhan yesterday unveiled legislation to be passed urgently to curb the influence of a group of Reserve Bank private shareholders he accused of threatening to undermine the Bank’s independence.

He also introduced the first major restructuring of the Bank’s board of directors since it was formed in 1921, and the start of a broader review that could lead to its nationalisation.

“What this bill is about is to promote better governance and to ensure that the independence of the Bank is not tampered with,” Gordhan told reporters.

“Urgent measures” were required to respond to “activities which could undermine the bank’s independence”, he said. The Cabinet had approved the bill at its last meeting, and it would be gazetted for public comment this [continue reading]

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