PPF statement on VBS

11 March 2018

Progressive Professionals Forum (PPF) is devastated by the reports that National Treasury has issued a directive to municipalities not to bank with the VBS in order to be in line with the draconian and apartheid inspired MFMA. As a result of that VBS is on the verge of collapsing.

The PPF is on record warning about the MFMA and PPPFA that are nothing but reactionary tools to ensure that there is no radical economic transformation and the ownership, control and management of economy remains in the hands of the white minority who had been enjoying the privilege since 1652. PPF is calling for URGENT repealing of certain sections of MFMA and PPPFA that are barriers to black owned businesses seeking to do business with government.

Whilst the African National Congress (ANC) resolved on transforming the financial sector including issuing of full commercial banking licenses to black owned banks, it cannot be that an ANC led government is seen to be doing the contrary and actively suffocating the ONLY existing black owned mutual bank through anti-transformation laws instead of instructing the PIC to expedite a bail out, granting a commercial license and providing for a deviation in the interim.

We call on the ANC President and President of the country Cde Cyril Ramaphosa to intervene urgently to stop the artificially created crisis and ensure that this matter is amicably resolved without delay. It cannot be celebrated that an ANC led and run government promotes laws that hinder and destroy blacks that do business with government. The ANC must be advocates on transformation in theory and in practice in order to maintain the integrity of its revolutionary messages.

PPF will engage with the management of VBS and charting a way forward on this matter faced by their institution. We are encouraging the VBS mutual bank to sort constitutional court intervention to challenge the unconstitutionality of the MFMA and its conflict with s217 (2) of the Constitution of the RSA.

We call on the SARB to also treat white and black banks even handedly, which so far has not been the case as it might have been seen around their response on the Viceroy attacks on Capitec vs attempt to shut down the VBS bank.

Issued by Luther Lebelo, Secretary General, PPF, 11 March 2018