19 March 2001
Since the South African Communist Party (SACP) launched the Campaign for the Transformation and Diversification of the Financial Sector in October last year, the last two months have marked a turning point with wider and increasing sections of South African society making calls on South African banks in particular to take immediate steps to transform their practices and policies in favour of poor and working people.
The Black Economic Empowerment Report of the Black Economic Empowerment Commission specifically calls on the need for a fundamental change in ownership, policies and practices of the financial sector of our country.
Government has also announced its intention to ensure that banks actually pay just taxes.
The SACP has also met with a wide range of organisations including the National Co-operative Association of South Africa, the National Stokvels Association of South Africa, and the Million Women's Savings Movement all of which endorse the campaign and are leading important initiatives on co-operatives, savings clubs and alternative financial institutions.
The SACP also applauds the work and campaigns of the Durban based Diakonia Council of Churches in mobilising communities around the lack of access to credit.
The banks now have nowhere to hide, they have to respond to these growing calls from the mass of our people.
Essentially, South African banks and the financial sector as a whole are unaccountable hoarders of our people+IBk-s money and savings. In our inter-action with the Banking Council and a few other banks, it is clear that the prime motive driving these banks is profit maximisation at the expense of investment in social progress. We get told about the need to adhere international standards whilst they continue with worst standards for the local population.
As recently as two weeks ago, the Amalgamated Banks of South Africa decided to increase their bank charges particularly hitting hard at those who earn less than R3000 per month. Considered against our campaign demands and the fact that ABSA is the largest bank used by the majority of poor and working people, this increase goes against the verbal commitments continuously made by banks to social investment. It reaffirms, once more, the need to intensify the campaign and calls on banks to change.
All the above points to the urgency of a comprehensive review of the entire financial sector, which must include a range of steps led by government. First and foremost is the convening of a NEDLAC Summit within the next three months.
The second step is the need for government to urgently put in place a comprehensive legislative framework. This framework must include the following:
Finally, the SACP calls on community organisations, religious organisations, trade unions, stokvel associations, burial societies, etc. to take part in a National Consultative Workshop on Tuesday, 10 April (Chris Hani Memorial Day).
CONTACT
Mazibuko K. Jara (surname Jara)
Department of Media, Information and Publicity South African Communist Party
Tel: 27 11 339-3621/2
Fax: 27 11 339-4244
Cell: 083 651 0271
Email: sacp1@wn.apc.org