Absa Bank has made submissions to Public Protector Busisiwe Mkhwebane‚ hoping to counter several adverse findings made against the bank which are contained in her provisional report on Absa’s role in the purchase of Bankorp.

In January‚ a leaked provisional report from the Public Protector’s office recommended that Absa pay R2.25 billion to the fiscus for an unlawful apartheid-era bank bailout.

It recommended that the National Treasury‚ together with the South African Reserve Bank‚ institute legal action against Absa in order to recover 16% interest accumulated over a period of five years amounting to R1.15 billion plus interest.

The interim report‚ titled “Alleged failure by government to recover funds borrowed to Absa”‚ also proposed that President Jacob Zuma should consider appointing a commission of inquiry to investigate alleged apartheid-era corruption.

Absa promised last month‚ at the time of the release of the leaked report‚ that it would make further submissions within the deadline of Tuesday‚ in order to correct several factual and legal inaccuracies.

Barclays Africa spokesman Songezo Zibi confirmed on Tuesday that Absa made submissions to the Public Protector on Monday.

“Absa has made its submissions to the Public Protector in line with the 28 February deadline. Our response addresses several legal and factual inaccuracies contained in the provisional report‚” said an Absa spokesman.

“Absa’s position remains that all obligations relating to the SA Reserve Bank’s assistance were discharged in full by October 1995‚ in line with the requirements set out by the SARB as part of the assistance programme to Bankorp‚ both before and after Absa’s involvement.”

He would not comment on the bank’s submissions.

However‚ it is understood Absa’s submissions state that there was a misunderstanding on the part of the Public Protector of the contracts that were signed between Absa and Reserve Bank after Absa had purchased Bankorp.

In the provisional report‚ the Public Protector said it was her considered view that government and the reserve bank should have taken a decision on whether to recover the 16% interest accumulated over the period of five years amounting to R1.125 billion plus interest.

It is understood Absa’s submissions state that the Reserve Bank had put in place an assistance programme to Bankorp between 1990 and 1992‚ whereby a capital loan of R1.5 billion was provided to Bankorp.

That loan was used mainly to purchase government bond‚ and the yield on those bonds would be used only to set-off certain specified bad debts owed by customers to Bankorp. The R400m remained deposited with the reserve bank as security for the loan.

The interest on the capital amount was 1% per annum‚ and not 16% as stated in the Public Protector’s provisional report.

However the yield on the government bond was 16% per annum.

When Absa bought Bankorp in 1992‚ the agreement was that Absa would receive the yield on the bonds‚ being 15% per annum.

Absa paid off the loan amount on October 13‚ 1995.