Stanbic/Nedcor Merger
Sacp Calls For Banks To Play A Developmental Role In Society

21 June 2000

The South African Communist Party (SACP) welcomes today’s decision by Finance Minister Trevor Manuel to refuse the merger between the Stanbic and Nedcor banks. In the immediate period, this merger would have led to at least 10 000 job losses, as estimated by SASBO (the banking union).

For some time, the SACP has been warning about the continued monopolisation and concentration of financial resources and power in South Africa. This deepens socio-economic inequalities and undermines the fundamental transformation of our economy.

The Minister’s decision is an opportunity for Stanbic, Nedcor and all other banks to consider their priorities in line with the country’s developmental objectives (job retention, job creation and housing being the main areas). Currently, South African bank s are driven and controlled by interests and logic of private capital. Evidence presented to the parliamentary hearings on the role of banks last week confirms the following:

• Many poor people are denied access to credit, and thereby an opportunity at a better life, by South African banks
• South African banks generally provide little or no finance for low cost housing, SMMEs and job creation. Instead South African banks finance luxury consumption expenditure by the rich and not the basic needs of our people.

It was in this context that the recent SACP Strategy Conference called for a public campaign for the fundamental transformation of South African financial institutions and the long-term establishment of a new public sector driven banking system aimed at ad dressing the needs and interests of the poor. To this end, the SACP will work with unions, social movements and government.

Issued by Blade Nzimande, SACP General Secretary

CONTACT
Mazibuko K. Jara (surname Jara)
Department of Media, Information & Publicity
SA Communist Party
Tel: 27 11 339-3621/2
Fax: 27 11 339-4244
Cell: 083 651 0271
Email: sacp1@wn.apc.org