First step of EFF’s proposal in nationalising Reserve Bank has begun

Parliament is currently calling on stakeholders and interested parties to submit written submissions on the South African Reserve Bank Amendment Bill. 

Introduced by the EFF (Economic Freedom Fighters), the South African Reserve Bank Amendment Bill will focus on altering the current South African Reserve Bank Act, 1989 (Act No.90 of 1989). If this bill is passed, South Africans can expect several changes, which will include the following:

• Provide for the appointment of certain Board directors by the Minister.
• Provide for the tenure of office of appointed directors.
• Deal with the filling of casual vacancies for appointed directors.
• Make the State the sole holder of the shares in the Bank.
• Give the Minister the power to appoint auditors of the Bank.
• Give the Minister the power to make regulations relating to the appointment of appointed directors.

In August this year, EFF’s deputy president Floyd Shivambu explained the current South African Reserve Bank Act allows private individuals to own shares —this includes foreigners.

But surely foreigner investment into the Reserve Bank is encouraged?

According to Shivambu, the private shareholders, through their acquired shares, in terms of the South African Reserve Bank Act, play a significant role in how the South African Reserve Bank is run. This includes the election of directors, as well as receiving dividends from the Bank’s profits.

This will all change if the Amendment Bill is passed. Shivambu said the draft bill would see the State becoming the sole shareholder of the South African Reserve Bank. As mentioned above, it will also allow the Minister enough power to make regulations as to who can and who cannot be appointed as directors.

Terrifyingly, it also gives the Minister of Finance the power to appoint the Bank’s auditors.

With this Bill now coming to the forefront, this is not the first time that a political party has wanted to nationalise the reserve bank, thereby having the “keys to the castle”—as noted during a conference in 2017, whereby the ANC decided the State should take ownership of the South African Reserve Bank. This is due to the current ownership structure apparently infringing on the nation’s sovereignty.

With failing State-Owned Enterprises such as South African Airways, Eskom and SABC continually requiring bailouts due to unprecedented mismanagement and corruption, is it wise to allow the State to take control of the fountain of our wealth as a nation, the South African Reserve Bank?

Now is the time for South Africans to have their say by making the necessary submissions. According to Parliament, submissions must be received by no later than 12 pm on Monday 16 November 2020.

Those who want to make submissions at public hearings on Wednesday 18 November 2020 should specifically request this. These hearings will be conducted through Zoom.

Submissions must be directed to the Committee Secretaries, Mr Allen Wicomb and Ms Teboho Sepanya (Standing Committee on Finance), 3rd Floor, 90 Plein Street, Cape Town 8000 or a

[email protected] / [email protected] / tel. 021 403 3759 / 021 403 3662 / 021 403 3782 or fax: 021 403 3942.

This is one of those things you cannot ignore. You need to have your say and as a South African in a democratic country, let your voice be heard.

Share your thoughts with us in the comments section below.

Authors: Quinton Boucher & Calvin Swemmer

Edited: Calvin Swemmer

Photo Credit: South African Reserve Bank Facebook page.