WITHDRAWAL OF DEBATE ON THE ‘NATIONALISATION OF THE RESERVE BANK

  • March 09, 2018 | MP, Hon. Willie Madisha

WITHDRAWAL OF DEBATE ON THE ‘NATIONALISATION OF THE RESERVE BANK 

 

The Congress of the People (COPE) has taken note of the decision by the ANC to withdraw its sponsored debate in Parliament.

Nonetheless COPE is concerned at the ANC’s stance on the Reserve Bank as adopted at its Elective Conference 

The independence of the Bank’s operations and policy, particularly in relation to political interference, is of paramount importance – a cornerstone in our democratic order 

Any insinuation that the bank’s current private shareholders hold any sway over the bank’s mandate is pure bunk as the Role, Mandate and Independence of the Reserve Bank are clearly articulated and enshrined in our Constitution. What concerns COPE is the ANC’s dogged determination to ‘nationalise’ the Bank and what informs this insistence. We raise this issue given the betrayal that South Africans have faced at the hands of the ANC in general.

We raise this given the ANC’s Deputy General Secretary’s utterances that (and I quote): “Our Reserve Bank needs to cushion the rand but the Reserve Bank itself is privately owned and so we have a difficulty”.

We raise this given then presidential hopeful and now Minister in the Presidency Nkosazana Dlamini-Zuma’s comments that the Reserve Bank’s policy could not be independent from the government and that the bank should have a clear and deliberate task to implement developmental policies of the ANC rather than "[holding] onto an amorphous independency".

We raise this given the Public Protector’s bizarre action where one creature of the Constitution (the Public Protector) attempted to undermine the constitutional independence of another (the SA Reserve Bank).

We are of the view that the pressure emanates from a faction within the ANC that sees the Bank as a blockage to more radical transformation within the financial services sector, and also frustration at its application of exchange control measures. The ANC is also currently struggling to gain traction with the narrative that the country’s low growth is the fault of the global economy or the domestic private sector. The reality is that our economic growth woes are due to political, policy and regulatory uncertainty as well as a failure to push forward meaningful structural reform – not the fault of monetary policy.

We have yet to hear a cogent and convincing argument by the ANC to change the bank’s shareholding.

 

COPE sees no current need to pander to the ANC and for government to pay large sums of money to what amounts to cosmetic changes that will have no bearing on the manner in which the reserve bank carries out its mandate or executes its policy.

 

We DO NOT support the nationalisation of the Reserve Bank.

 

Statement by: Deputy President of the Congress of the People (COPE)| MP, Hon. Willie Madisha

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