/ 17 July 2001

JUDGE APPOINTED TO PROBE REGAL BANK

THE South African Reserve Bank said on Monday it had appointed a former judge to investigate troubled Regal Treasury Private Bank Ltd. The central bank said it had appointed Advocate John Myburgh as the commissioner to conduct the investigation into Regal, which was put under curatorship in June. That followed large withdrawals by depositors, which sparked liquidity problems. “This is the first time that this section of the Banks Act (allowing the appointment of a commissioner) has been utilised and its purpose is to enable an independent investigation of the affairs of a bank under curatorship,” it said. Myburgh will report on various issues including whether or not “any business of Regal was conducted recklessly or negligently, or with the intent to defraud depositors or other creditors”. – Reuters

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