FSTC is changing its tune and trying to evade accountability 

5 June 2024

The Financial Sector Transformation Council (FSTC) has changed its tune and now denies that it is obligated to hand over its BEE policies and related information to Sakeliga. 

Sakeliga recently challenged the FSTC over its BEE reporting requirements to financial services providers. Both Sakeliga and the Financial Sector Conduct Authority (FSCA) believe that the FSTC "is not able to sanction institutions." We also remain of the view that the FSTC has no authority to demand compliance with its BEE reporting notice and we encourage financial services providers to take an approach of maximum achievable non-compliance with BEE matters. 

The FSTC has so far failed to point out where it supposedly obtained the power to enforce BEE reporting and set deadlines. (See statement of 24 May 2024.) 

Until last week, the FSTC undertook to provide all records that Sakeliga requested from it in terms of the Act on the Promotion of Access to Information (PAIA) by 31 May 2024. These records deal with the FSTC's status as a sector council, its policies, and any cooperation it has with institutions such as the B-BBEE commission for the intended imposition of sanctions. 

However, instead of complying with the information request, the FSTC is trying to evade accountability. It has now accused Sakeliga of a "fishing expatriation" (sic) and let us know that it has decided that Sakeliga must first say why it wants the information. (For the FSTC's attorney’s letter of 31 May, click here.) 

The FSTC apparently does not understand that PAIA does not require any motivation and that it (the FSTC) is obligated to make all public records available. 

We have informed the FSTC that,  

'insofar as Sakeliga is perceived as "fishing" for access to the information held by the FSTC as a public body, Sakeliga intends to "fish" via its information rights for every scrap of paper falling within the ambit or its request.'  

(For Sakeliga's lawyer's letter on 3 June, click here.) 

In order to obtain the information, Sakeliga has now  lodged a complaint with the Information Regulator. We intend to compel the FSTC to provide all the information we requested and will provide further updates as the complaint process takes its course.

Issued by Piet le Roux, CEO, Sakeliga, 5 June 2024