Bank makes 25% cost settlement

THE South African parent of Ansbacher (Cayman) Limited, the bank at the centre of offshore tax evasion uncovered by the McCracken Tribunal, said yesterday the bank settled for approximately 25% of the amount sought by the Government relating to the costs of an inspection into the company.

FirstRand declined to be more exact on the amount involved. The bank also said yesterday its plans to sell some or all of its stake in Ansbacher were well advanced. More than 30 parties have expressed an interest in buying Ansbacher or taking a strategic stake in the bank.

Earlier this week, Justice Minister Michael McDowell reached an out-of-court settlement with eight companies in respect of the costs of the investigation, which totalled around 3.4 million. The settlement will see the Government recover 1.2m, leaving the taxpayer to foot the bill for the rest. The Department of Justice, Equality and Law Reform said the settlement should be seen in the context of the results of the investigation, which was estimated to yield over 50m in unpaid taxes and penalties.