Renée Bonorchis
27 November 2008
Johannesburg — FINANCE Minister Trevor Manuel said yesterday he was not leaving the treasury anytime soon, and that the appointment of his partner, Maria Ramos, as Absa CE would not constitute a conflict of interest.
"The institution responsible for the regulation of banks in SA is the registrar of banks.
"It is not permissible for the minister of finance to involve himself with the interactions between the banks and the registrar," Manuel said in a letter published by Beeld newspaper's business section.
Manuel was responding to reports that suggested he would leave his post soon and that Ramos's appointment at Absa presented a real conflict of interest.
Ramos, who has been the CE of transport parastatal Transnet for five years, resigned on Friday to become the CE of Absa in March next year.
South African banks are regulated by registrar of banks Errol Kruger and governed by the Banks Act, although the treasury does set policy, which affects the banks.
Ramos, as head of Transnet, pointed out it was Manuel who set tax policy, and there was never a conflict of interest there.
"Transnet was not given tax favours," Ramos said. "I have always maintained a clear distinction between my professional life and my private life.
"The board of Absa will hold me to that."
Absa chairwoman Gill Marcus said she had no doubt that there would be no interference from the finance minister.
She said she recognised Ramos's appointment placed an extra responsibility on herself and the board.
Any areas of potential conflict would have to be managed by the board, she said, but there was "no line of sight" between the bank and the finance minister.
Manuel, the subject of endless speculation about when he might leave his job, said again yesterday that he did not have any intention to resign before a new cabinet had been appointed by a new president after the general election next year.
Manuel is the world's longest-serving finance minister. When he resigned as a technicality at the end of September to make way for the change in the presidency from Thabo Mbeki to Kgalema Motlanthe, markets in SA plummeted.
Manuel said yesterday that speculation about his departure was "without factual basis and, in the current environment of economic uncertainty, extremely irresponsible".
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