EFF STATEMENT ON THE WITHDRAWAL OF THE SUBJECT FOR DEBATE ON THE NATIONALISATION OF THE SOUTH AFRICAN RESERVE BANK
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The Economic Freedom Fighters notes that the ANC Parliamentary Caucus has withdrawn the subject for debate on the nationalisation of the South African Reserve Bank.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.