South African parliament to oppose calls to change central bank mandate

The South African parliament will launch a court challenge against an anti-graft watchdog’s recommendation of constitutional changes to alter the mandate of the central bank, it said.

The legislative assembly joined the central bank and lender Barclays Africa in seeking a court review of Public Protector Busi Mkhwebane’s proposal to change the central bank’s primary mandate of maintaining currency and price stability to focus on economic growth.

“Parliament believes that the remedial action (mandate change), which is binding in terms of the law, usurps the powers of the institution under the Constitution,” it said in a statement posted on its website.

“Parliament will accordingly initiate a court application to have this remedial action set aside on the basis of its unconstitutionality.”

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