South Africa’s central bank has appointed an inquiry commission to probe the multibillion-rand collapse of African Bank Investments.
Last month, African Bank Investments was rescued in a $1.6 billion bailout led by the central bank after being hit by waves of bad debt as its core market of low-income borrowers failed to pay back loans.
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The probe will seek to determine if "any business of African Bank was conducted recklessly, negligently or with the intent to defraud depositors," the central bank said.
The panel will also probe any "questionable management practices or material non-disclosures, with the intent to defraud depositors."
JF Myburgh, a lawyer, would lead the investigation of the bank and would be assisted by Vincent Maleka and Brian Abrahams.
The probe would take five months, with a written report due a month after that, the central bank said.
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By GlobalDataAfrican Bank Investments collapsed last month after forecasting a record loss and saying it needed at least ZAE8.5 billion to survive.
The central bank stepped in four days later and appointed a curator to save its performing loan book.
