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May 6th, 2010 | By admin |

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Dion George, DA Spokesperson on Finance
4 May 2010
Yesterday, the National Treasury issued the South African Reserve Bank Amendment Bill to counter the actions of a group of shareholders whose activities have brought into question the ability of the bank to operate effectively. In particular, this group appears to be seeking influence beyond that intended in the Act, and has introduced uncertainly over the ongoing good governance of the Bank. The Bill sets out various steps to improve governance and clarifies the role of the Board. Given the pivotal role the Reserve Bank plays in the South African economy, it is of utmost importance that its independence and integrity is maintained, free from undue interference, whether from political interests or private shareholders.
The aim of the Bill is to improve governance; we do not believe it is an act of expropriation or nationalisation. The bill will now go through the due parliamentary process; during this process, we will pay particular attention to the detail involved in the proposed nomination of directors from a broader base of the South African public and the composition of the panel for the election of directors. This panel, if instituted, must consider nominees on the basis of their being “fit for purpose” rather than political affiliation. The DA will also welcome input from stakeholders affected by the proposed amendments, including any shareholders.
Clause 3 of the Bill confirms the view that the DA has previously articulated that the role of the Board is to ensure good governance at the bank and not policymaking. A better governed bank is in the interests of all South Africans, and we must resist any influence that undermines its stability.

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