The youth League (ANCYL) has called on government to desist from doing business with Absa.
Mlondi Mkhize, the league’s spokesperson released a statement on Wednesday saying they will intensify political action and radical campaigns to have the government withdraw its accounts from Absa until the bank pays off all it owes the country.
This follows report of a leaked draft document from the Public Protector’s office last week, which shows that Absa has to pay back R2,25 billion to the Reserve Bank, for the alleged illegal and improper loan, donation or so-called lifeboat made to a now-defunct bank, Bankorp, which Absa acquired in 1992.
Thuli Madonsela, former Public Protector began the investigation in 2012, but it was completed by her successor Busisiwe Mkhwebane.
Absa, on it’s own part, decried the leaked report saying it gave a wrong impression in that it has some legal inaccuracies which must be corrected.
The league said banks’ “racialised extortion” of the public needed further debating. Access to loans, housing bonds and car finance was based on a credit risk assessment model that ensured black youth paid the highest interest rates.