/ 18 March 2003

FirstRand to probe allegations against Maharaj

Banking group FirstRand (FSR) confirmed on Monday it has appointed a leading firm of attorneys, Hofmeyr, Herbstein & Gihwala Inc, to conduct an independent inquiry into recent allegations made against one of its directors, former Transport Minister

Mac Maharaj.

Maharaj, who serves on three of the group’s company boards, was granted a three-month leave of absence after offering to resign in the wake of allegations of corruption while still a cabinet minister.

FirstRand CEO Laurie Dippenaar said that the terms of reference of the inquiry would determine whether the allegations contained in a Sunday Times report had substance, more specifically about the “allegations regarding corrupt practices by Mr Maharaj during his tenure as Minister of Transport, and allegations regarding a breach of parliamentary disclosure policy pertaining to the receipt of gifts and benefits”.

Dippenaar said the findings of the inquiry would be presented at a FirstRand board meeting scheduled for May 16 2003. The findings would also be made available to the Bank Supervision Department of the South African Reserve Bank and the Financial Services Board, both of which had been fully appraised of the procedure and had endorsed the approach.

“As stated at the outset, we are seeking to eliminate uncertainty regarding the matter in an objective and transparent manner, while abiding by the principles of due process and sound corporate governance,” Dippenaar said. – I-Net Bridge