An inter-Ministerial Committee (IMC) has recommended that government consider the establishment of a State Bank of South Africa, with the possible corporatisation of the Post Bank as a possible option.
This is according to a statement released by Mineral Resources Minister Mosebenzi Zwane, who chaired the IMC, which was established in April to consider allegations that certain banks and other financial institutions had “acted unilaterally and allegedly in collusion” when they closed bank accounts and terminated contractual relationships with Oakbay Investments, which is owned by the Gupta family.
“The IMC conducted a number of meetings with various banks, financial institutions and insurance companies, as well as with representatives of Oakbay Investments,” he said.
In a report of recommendations tabled to Cabinet, the IMC also recommended President Jacob Zuma consider establishing a Judicial Enquiry in terms of Section 84(2)(f) of the Constitution and consider the current mandates of the Banking Tribunal and the Banking Ombudsman.
It further recommended that Cabinet consider the current Financial Intelligence Centre Act and the Prevention and Combatting of Corrupt Activities Act regarding relevant reporting structures, as evidence presented to the IMC was unclear on whether the various banks and financial institutions, as well as the South African Reserve Bank and the National Treasury, complied with these and other pieces of legislation.
Another recommendation was that South Africa reconsider its clearing bank provisions to allow for new banking licences to be issued.
“It is unclear why the Reserve Bank will not issue new banking licences to other banks and this would need to be given careful attention by the Judicial Enquiry as it did not fall within the purview of the IMC,” Zwane stated.