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* Absa, unit of Barclays Africa, may have to pay $166 mln
* Anti-graft body awaits submissions before ending probe
* Absa says report factually & legally inaccurate
* More apartheid-era finances may be investigated (Recasts with Barclays Africa, adds details)
By Nqobile Dludla
JOHANNESBURG, Jan 13 (Reuters) - South Africa's anti-graftwatchdog has reopened an investigation into whether BarclaysAfrica Group benefited from an apartheid-era bailout,the bank said on Friday.
A preliminary report by the country's Public Protector hasfound that the apartheid government breached the constitution bysupplying Bankorp, which was acquired by Barclays Africa unit,Absa, in 1992, with a series of bailouts from 1985 to 1995, theMail & Guardian newspaper reported.
Barclays Africa could have to repay 2.25 billion rand ($166million) if the finding by Public Protector Busisiwe Mkhwebaneis upheld, the paper added.
A previous investigation in 2000 by a central bank-appointedpanel found that the loans were made to stabilise the bankingsystem and Absa shareholders did not derive any undue benefit,recommending no further action be taken.
Former Public Protector Thuli Madonsela instituted thefollow-up investigation after a 2010 complaint by Paul Hoffmanof non-governmental organisation Accountability Now, the Mail &Guardian newspaper said.
Barclays Africa said it would continue to cooperate with thePublic Protector, but it believes Mkhwebane's preliminary reporthas "several factual and legal inaccuracies".
"In its current form it creates the incorrect view that AbsaBank Limited (Absa), a subsidiary of the Group, received unduebenefits by virtue of the South African Reserve Bank (SARB)assistance to Bankorp," Barclays Africa said in a statement.
At 0911 GMT, shares in Barclays Africa were down 1.46percent to 168.50 rand.
Barclays Plc is in the process of trying to reduceits stake in Barclays Africa to 20 percent from 50.01 percent asit focuses its business on other markets.
A spokesman for Barclays in London declined to comment onwhether the case had any implications for the bank's plans tosell its stake in Barclays Africa.
South African Reserve Bank (SARB) Governor Lesetja Kganyagosaid on Friday the central bank will also cooperate in thePublic Protector's investigation.
Mkhwebane, whose office did not immediately respond torequests for comment, has given Absa, the SARB, the nationaltreasury and the presidency until Feb. 28 to make furthersubmissions before finalising her investigation, the Mail &Guardian said, citing a copy of a preliminary report.
In her suggested remedial action, Mkhwebane proposed thatSouth African President Jacob Zuma should consider a commissionof inquiry to see whether other apartheid-era loans should berepaid by other institutions, the paper said.($1 = 13.5279 rand) (Additional reporting by TJ Strydom, Olivia Kumwenda-Mtambo andLawrence White; Editing by Simon Cameron-Moore, Joe Brock andAlexander Smith)
