Finance Minister Malusi Gigaba has told public protector Busi Mkhwebane that she has no power to change the Reserve Bank's mandate to protect the value of the rand.
In his affidavit filed in the North Gauteng High Court in Pretoria to review Mkhwebane's CIEX report instructing Absa to pay an additional R1.125-billion for the R3.2-billion lifeboat offered to its predecessor Bankorp, the finance minister further states that Mkhwebane sidelined him.
He said there was no basis to conclude that the central bank should not play the role of protecting the value of the rand.
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"In so far as the public protector argues that in her view that aspect of the mandate of the Reserve Bank should be reconsidered, she is not entitled to direct a policy change," reads Gigaba's affidavit dated July 5.
Gigaba, the Reserve Bank and Absa have asked the high court to review and set aside Mkhwebane's findings, conclusions and remedial action.
Last week, Mkhwebane announced that she would be opposing their applications.
In her report, Mkhwebane ordered the National Assembly's portfolio committee on justice and correctional services to initiate a process that will lead to the amendment of section 224 of the constitution "in pursuit of improving socioeconomic conditions of citizens of the republic".
If implemented, her recommendation would change the Reserve Bank's mandate.
But Gigaba said there was no rational foundation to Mkhwebane's recommendation to remove the Reserve Bank's currency protection mandate.
"It is not as if there is a contradiction between the protection of the currency and the necessity to address socioeconomic challenges facing the economy," Gigaba said.
Mkhwebane ordered parliament to amend the constitution to state that "the Reserve Bank, in pursuit of its primary object, must perform its functions independently and without fear, favour or prejudice, while ensuring that there must be regular consultation between the bank and parliament to achieve meaningful socioeconomic transformation".
Gigaba said Mkhwebane sidelined him by removing the requirement that he be consulted by the Reserve Bank regularly.
"She has not explained why, in her view, the minister of finance should not be consulted by the Reserve Bank on a regular basis as envisaged in section 224(2) [of the constitution]," he complained. Gigaba said the public protector's recommended change to the constitution was irrational.
The minister said the making of economic policy is his job and cannot be "parcelled out" from President Jacob Zuma's cabinet to parliament.
Gigaba said there were sound reasons why the Reserve Bank must operate in consultation with him.
Public protector can't direct a policy change - Gigaba
Finance Minister Malusi Gigaba has told public protector Busi Mkhwebane that she has no power to change the Reserve Bank's mandate to protect the value of the rand.
In his affidavit filed in the North Gauteng High Court in Pretoria to review Mkhwebane's CIEX report instructing Absa to pay an additional R1.125-billion for the R3.2-billion lifeboat offered to its predecessor Bankorp, the finance minister further states that Mkhwebane sidelined him.
He said there was no basis to conclude that the central bank should not play the role of protecting the value of the rand.
ALSO READ: Parliament takes on Public Protector
"In so far as the public protector argues that in her view that aspect of the mandate of the Reserve Bank should be reconsidered, she is not entitled to direct a policy change," reads Gigaba's affidavit dated July 5.
Gigaba, the Reserve Bank and Absa have asked the high court to review and set aside Mkhwebane's findings, conclusions and remedial action.
Last week, Mkhwebane announced that she would be opposing their applications.
In her report, Mkhwebane ordered the National Assembly's portfolio committee on justice and correctional services to initiate a process that will lead to the amendment of section 224 of the constitution "in pursuit of improving socioeconomic conditions of citizens of the republic".
If implemented, her recommendation would change the Reserve Bank's mandate.
But Gigaba said there was no rational foundation to Mkhwebane's recommendation to remove the Reserve Bank's currency protection mandate.
"It is not as if there is a contradiction between the protection of the currency and the necessity to address socioeconomic challenges facing the economy," Gigaba said.
Mkhwebane ordered parliament to amend the constitution to state that "the Reserve Bank, in pursuit of its primary object, must perform its functions independently and without fear, favour or prejudice, while ensuring that there must be regular consultation between the bank and parliament to achieve meaningful socioeconomic transformation".
Gigaba said Mkhwebane sidelined him by removing the requirement that he be consulted by the Reserve Bank regularly.
"She has not explained why, in her view, the minister of finance should not be consulted by the Reserve Bank on a regular basis as envisaged in section 224(2) [of the constitution]," he complained. Gigaba said the public protector's recommended change to the constitution was irrational.
The minister said the making of economic policy is his job and cannot be "parcelled out" from President Jacob Zuma's cabinet to parliament.
Gigaba said there were sound reasons why the Reserve Bank must operate in consultation with him.
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