EFF reveals plans to create state-owned banks in South Africa
The EFF’s Floyd Shivambu will introduce a private members bill to parliament which will pave the way for state-owned banks in South Africa.
“The requirements imposed by the Banks Act before a person may conduct the business of a bank, and register as such, makes it impossible for a state-owned company registered in terms of the Companies Act to conduct the business of a bank,” the bill states.
“The bill seeks to amend the Banks Act to make it possible for state owned companies to register in terms of that Act and to conduct the business of a bank.”
Other amendments proposed by the bill include:
- For a state-owned company to be able to exercise control over a bank.
- For a state-owned company to be eligible to apply for registration as a controlling company.
- For a state-owned company registered as a bank or as a controlling company to be able to continue to be a company in terms of the Companies Act.
According to legal commentator for Legalbrief, Pam Saxby, the bill may run into issues as the time-frame for submitting new bills passed on 31 March, and it still needs to be ‘certified’ by the office of the chief parliamentary legal adviser.
“It will apparently be posted on the EFF’s website, which is regularly offline and the notice heading begins: ‘Civil Union Amendment Bill 2018’,” Saxby said – indicating that the private bill may need to be ironed out before it could actually pass legal muster.
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