The EFF statement on the objection to the Banks Amendment Bill

6 May 2015

On Wednesday, the 6th of May 2015, The Economic Freedom Fighters objected to the adoption of the Banks Amendment Bill in Parliament, and called for the division before the Bill could be adopted. We have seen in the past appointments of curators, some from multinational corporations who are participating in aggressive tax avoidance on behalf of the very same banks that now requires Parliament to change legislation so that we can continue benefitting white capital monopoly while the poor and working South African’s are exposed to high unsecure lending practices of loans they cannot afford.

The basis of the EFF objections to the Banks Amendment Bill is primarily that, state intervention to failing banks must not be appointment of curators. Credible and sustainable banking system, like we witnessed during the 2008 financial crisis caused by the very same banks, can be the backbone of the economy and can also play a critical role in eradicating deep rooted mass unemployment and level of inequality that is both morally unacceptable and constitute a real threat to the country’s social and economic stability.

We have a banking system that is celebrated internationally for stability and credibility, but the collapse of African Bank Investment Limited (ABIL) has shown us that, the banking system in the hands of white monopoly capital and multinational is not that stable and credible after all. It is the very same banking system, together with other strategic sectors that has failed to respond to government’s developmental imperatives and contribute little to state revenue and wealth distribution but continues to entrench exploitation of the poor and working South Africans.

The EFF has called, unequivocally, what South Africa need to do with banks including the Reserve Bank. Banks and other strategic sector of the economy can only be transformed through a radical change of ownership and control and will continue to do so. Firstly, the state must take up a greater responsibility, intervention, ownership and control of the Reserve Bank given its strategic role in our economy.

It is then that, we can start engaging in a constructive and meaningful debate about the value of exchange controls to ensure that multinationals doing business in South Africa will start complying with the country’s legislation to stop the looting through illicit financial flow. Secondly, and most important, the EFF’s objection to the Bank Amendment Bill is precisively that our type of state intervention is nationalization and strategic control of banks, and not appointment of curators and continuous protection of white monopoly capital.

Banks in the hands, ownership and control of private and multinational corporations are very dangerous and apocalyptic institutions in any economy. We once again call on government to establish a capable State owned bank which will insulate South Africa’s economy from financial and economic shocks created by privately owned banks and greedy capitalists. The Bill does not solve the problem, but now a licence to reckless corporate management by the Banks, and such will collapse South Africa’s economy. When South Africa gets to a crisis because of protected banks under private ownership, our conscience would be clear because we told South Africans and Parliament not to adopt such a Bill.

Statement issued by the Office of the EFF Chief Whip, May 6 2015