SARB: Status quo unacceptable - EFF

Fighters says bank currently owned by private shareholders, some of whom are foreigners


Tuesday, March 6, 2018

The Economic Freedom Fighters notes that the ANC Parliamentary Caucus has withdrawn the subject for debate on the nationalisation of the South African Reserve Bank. We further note that the withdrawal of the subject for debate is premised on what the ruling party says will be further consultations.

The EFF is of the view that a motion on nationalisation of the South African Reserve Bank should be tabled as a matter of urgency, and amongst other things, it must mandate the Standing Committee on Finance to commence the process of drafting legislation that will culminate in State ownership of the SARB, whilst retaining its autonomy as called for in the Constitution. The relative autonomy of the Reserve Bank is important so that politicians are not tempted to divert some of its resources into corrupt and self-enrichment activities.

In its current form, the SARB is owned by private shareholders, some of whom are foreigners with no patriotic interests and commitment to South Africa. The status quo is unacceptable and should be changed through decisive political action. It is only the EFF that has the courage, determination and political will to change the economic base of South Africa in order to benefit our people.

The envisaged legislation on the SARB should additionally strengthen its capacity to provide prudential oversight over the existing banks, to avoid wrongdoing and financial malpractices. The legislation should also set a framework for deconcentrating bank ownership because currently only 6 banks own more than 90% of banking services in South Africa and they operate like a cartel.

The SARB should also be instructed to expedite the licensing of Postbank into a fully-fledged State bank with the capacity to do what other banks do at a reasonable rate and accessible manner.  The SARB must also create an enabling environment for the creation, existence and sustenance of fully black-owned and cooperative banks.

If the ANC does not table a motion on the nationalisation of the SAR, the EFF will use its next opportunity to table a comprehensive motion on nationalisation of the Reserve Bank. The EFF will do because our Founding Manifesto says, “The creation of a State Bank and the nationalisation of the Reserve Bank constitute an immediate task and essential to the development of the South African economy, as it can be progressively positioned to improve the existence of state-owned development finance institutions, in order to finance new industries”.

The EFF will continue to provide decisive ideological and political leadership to society without fear or favour. We will do so because the economic policies of the EFF represent superior logic and constitute the core of what the future will look like.

Statement issued by the Economic Freedom Fighters, 6 March 2018