EFF wants central bank state-owned

Credit: @EFFSouthAfrica Twitter

Cape Town – Economic Freedom Fighters (EFF) Chief in Command, Julius Malema, put forward an amendment bill for the central bank to be nationalized. Furthermore, the bill states that the directors of the South African Reserve Bank should be appointed by the finance minister as opposed to shareholders.

Governor of the SARB, Lesetja Kganyago, says that the process of nationalization would be long and costly. Kganyago says that nationalisation does not necessarily indicate stronger governance. He emphasized independence as a necessity for the SARB in decision-making around monetary policy.

Kganyago guaranteed members of Parliament that policies of the ruling party will only be implemented if it is made into government policy. It is imperative that these policies do not interfere with the SARB’s authority.

The bill does not indicate how current shares will be dealt with, nor does it provide information on how possible liquidation will be resolved. Malema, however, stated that there would be no financial complications for the state should nationalization take place.

Both the EFF and the African National Congress announced that they are for the nationalization of the central bank.

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