SA’s big banks slammed for lack of transformation

SOUTH African financial institutions have been lambasted for lack of transformation in the banking sector.

SA National Civic Organisation (Sanco), socio-economic and political movement Transform RSA as well as other interested parties are set to embark on a protest under the hashtag, #RacistBanksMustFall, outside Absa and FNB banks in Sandton today.

Several of the banks have come under fire for lack of transformation, political meddling, poor policies as well as structural financial racism.

Absa was recently condemned for its decision to part ways with its black chief executive, Daniel Mminele, while some media reports suggest that FNB has allegedly been involved in corruption. It is also planning to close accounts of a black-owned company, AYO Technologies on May 3.

Transform RSA president Adil Nchabeleng said: “Most black businesses are being targeted by banks; some of my accounts have been closed.

“Whenever we complain, the government has never come to our rescue,” said Nchabeleng.

He maintained that South African banks were not committed to any government transformation policies.

Sanco spokesperson Bhekikhaya Qhama said: “One of the major concerns is that where our people have taken bonds and they have agreed to pay for a period of 20 years.

“The minute they lose work on their last years of payment and they skip a payment, they lose their homes. Banks are not assisting black people to flourish. Enough is enough. They are making black people sink into debt.”

Sanco proposed the formation of a bank owned by black people to support black farmers and homeowners.

The SACP welcomed efforts by Sanco and other stakeholders to push for transformation in the sector.

“We support any legitimate action taken to the doorsteps of the banks, because we still need to push financial sector transformation,” said the SACP’s Dr Alex Mashilo.

Mashilo said that transformation was more than just ensuring that black people sat on the boards of major banks. “Transformation is a broad term. We have around five big banks, and this is a private commercial banks’ monopoly. If you look at it, the state is a major customer and they have accounts with these banks. We should have a state bank,” said Mashilo.

African Transformation Movement president Vuyo Zungula accused South African banks of interfering in politics and bullying certain companies.

“What we are seeing in the banks is what has been happening in the past 27 years of our democracy ,” said Zungula.

The South African Society of Banking Officials called for an audit into the ownership of South African banks.

Sasbo secretary-general Joe Kokela said: “Some banks still want to protect white supremacy. If you look at how Absa was formed, you would realise it was formed through nationalism. It was ‘die bank van die volk’, meaning the bank for people of that colour … when they were transforming into Absa, were they really transforming or looking at how they were going to make money from the blacks?”