Fin24 reports that the SA Federation of Trade Unions (Saftu) said on Tuesday that changing the SA Reserve Bank’s (SARB’s) mandate to support growth was not a viable solution and it should be nationalised instead.

This followed Public Protector (PP) Busisiwe Mkhwebane’s recommendation, which formed part of a report on the alleged failure of the bank to recover R1.125bn in misappropriated funds that served as a lifeboat for Bankorp (now Absa), for a constitutional amendment to the SARB’s powers.  Saftu acknowledged that Mkhwebane’s proposal for the SARB to promote “balanced and sustainable economic growth” while ensuring the protection of citizens’ socio-economic wellbeing would improve matters.  However, the federation called for the nationalisation of the bank, and for it to become a public service rather than a profit-making company.  SARB governor Lesetja Kganyago has previously pointed out that the bank does not have a profit-making objective.  The SARB has resolved to urgently bring proceedings to have the PP’s remedial action set aside.

  • Read this report by Lameez Omarjee and Matthew le Cordeur in full at Fin24
  • Read Saftu’s press statement in this regard at Saftu online
  • See too, Public Protector’s recommendation unlawful, says SARB, at Moneyweb