/ 8 July 2005

Barclays, Absa a done deal

The Barclays takeover of Absa is a done deal. The Johannesburg High Court on Thursday dismissed the application by anti-globalisation lobby Jubilee South Africa and Professor Dennis Brutus to stall the deal.

Jubilee and Brutus opposed the takeover, saying Barclays had ”aided and abetted” the apartheid government by acquiring South Africa Defence Bonds worth R10-million in 1976, and by refusing to pay reparations to victims of apartheid.

Judge Mohammed Jajbhay ruled that Jubilee had no legal standing to oppose the deal and had not shown how it would be prejudiced if the deal went ahead now instead of later.

The court further said that Jubilee was not entitled to a speedy hearing because it had chosen to bring the matter to court at ”the eleventh hour” when they had been aware of Barclays and Absa’s intentions for some time. They had even publicly protested about the mooted takeover.

While Absa’s lawyer, Bruce Cleaver, was happy with the outcome, Brutus and Jubilee’s Makoma Lekalakala — who had both led evidence as to why the deal should be shelved — were crestfallen.

One man opposed to the deal left the court under police escort and Judge Jajbhay asked the director of prosecutions to investigate charges of contempt of court and disrupting proceedings.

Earlier on, another man escaped possible jail time for interrupting the judge by leaving the courtroom before police were called in.

Lekalakala told the judge that his decision showed the legal system ”legitimises organised crime” in South Africa.

Brutus said it was unfortunate that the court’s decision coincided with the G8 meeting in Scotland where leaders of the most industrialised countries were discussing the fate of the world’s poorest. Brutus also indicated the intention to take the case to the Constitutional Court.

Outside court, Brutus joined a small crowd chanting anti-Barclays/Absa slogans and decrying President Thabo Mbeki and Minister of Finance Trevor Manuel, whom they called ”economic terrorists”.