DA plans to fight hostile takeover of the Reserve Bank
The nationalising of the South African Reserve Bank (SARB) is a hostile move in a long game of EFF political manoeuvres to influence the mandate and operations of the Reserve Bank and ultimately South Africa’s banking system as a whole.
This is also an electoral game for the EFF. Whether or not the Bill is passed, the EFF hopes to dominate the ANC’s radical agenda, and position itself as the authentic party of the left.
In a statement released on the 6th of March 2018, the EFF is unreserved about its ambitious plans for the SARB, including: influencing prudential oversight, deconcentrating bank ownership, expediting the licensing of state owned banks, and using the SARB to create a preferential environment for certain banks including state-owned development finance institutions.
At present, private shareholders are limited to holding 10 000 shares and to electing a minority of the non-executive Board members. The provision of a fixed dividend means that shareholders do not invest with the motive of making profits. In addition, shareholders play no role in the formulation and implementation of monetary policy and are excluded from core functions.
There can be no meaningful public interest motive in nationalising the Reserve Bank, only the furtherance of private political interests.