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Tito Mboweni 'fired' as Brics bank director

by Staff reporter
10 Aug 2017 at 08:04hrs | Views
Former South African Reserve Bank governor Tito Mboweni has been removed from the board of directors of the New Development Bank - commonly known as the Brics bank - after two years.

Mboweni posted on Facebook on Wednesday that he had been "fired" but that "it's ok".

He said: "They are the government of the day after-all. They can do as they wish."

The bank was established by the Brics countries in July 2015 with a nonexecutive director from each member country. Its objective is to fund infrastructure projects in member countries and the emerging world.

At the time, it was seen as an alternative to the World Bank and IMF. Nonexecutive directors were appointed for a two-year renewable term.

Mboweni was appointed by former finance minister Nhlahla Nene - his appointment was approved and announced by the cabinet. His removal took place through a telephone call from a government official last week and was not announced in last week's cabinet statement.

Spokesman for Finance Minister Malusi Gigaba, Mayihlome Tshwete said that Mboweni's term had ended and that it had always been the intention to place a top departmental official in that role. The intention was to place Treasury director-general Dondo Mogajane on the board as SA's representative.

The nonexecutive directors of the four other member countries in Brics are all top government officials who are part of their treasuries.

In his Facebook post, Mboweni said that he was "removed by the South African government as a nonexecutive director of the Brics bank last week.

"They have their own logic and reasons for doing that.

"I served for two years and at the time of my appointment I was told, via a letter from minister Nhlanhla Nene, that the term was a renewable one.

"But alas, this has not been the case. Fired, you might say!!"

Mboweni recently resigned as a director of PPC, a move on which he has not commented.


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