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South Africa’s anti-graft watchdog has reopened an investigation into whether Barclays Africa Group benefited from an apartheid-era bailout. A preliminary report by the country’s Public Protector found that the apartheid government breached the constitution by supplying Bankorp, which was acquired by Barclays Africa unit, Absa, in 1992, with a series of bailouts from 1985 to 1995.
Barclays Africa could have to repay 166 million dollars if the Public Protectors findings are upheld. A previous investigation in 2000 by a central bank-appointed panel found that the loans were made to stabilize the banking system and Absa shareholders did not derive any undue benefit. It recommended no further action be taken.
