African Bank’s top brass may be charged

A commission of inquiry into the multibillion-rand collapse of African Bank could open the way for criminal charges or sanctions against some of the bank’s management and directors. The Reserve Bank has appointed advocate John Myburgh to head the commission. He will be assisted by Vincent Maleka, SC, and Brian Abrahams. Their task is to investigate ‘the business, trade, dealings, affairs, assets and liabilities of African Bank’ to determine whether the bank had been reckless, negligent or fraudulent before it had to be placed under curatorship. The conduct of bank directors and management has to meet the requirements of the Banks Act and the Companies Act, which both contain provisions regarding good corporate governance. The commission has five months to investigate, and then another 30 days in which to report its findings. Mr Myburgh is in familiar territory. He was appointed by the Reserve Bank in July 2001 to head an inquiry into Regal Bank, which it also placed into curatorship, according to businessday.com