Independence of Reserve Bank ‘must be guaranteed’

THE ANC is mulling the idea of nationalising the SA Reserve Bank, but says its independence should be guaranteed.

Addressing the media on the outcome of discussions in the economic transformation commission at the ANC’s national policy conference‚ party head of the economics transformation sub committee Enoch Godongwana said private ownership of the SARB was an “abnormality”.

However‚ he said the independence of the Reserve Bank should be guaranteed.

“The independence of the Reserve Bank is sacrosanct and there is no intention in the recommendations (from the policy conference) to tamper with that.”

In the lead-up to the policy conference‚ there had been a strong push to nationalise the Reserve Bank and bring it completely under the control of the government.

But Godongwana explained that while the Reserve Bank had more than 650 shareholders‚ their influence over the bank’s mandate and decision-making was “neither here nor there”.

He said even if the bank were to be nationalised‚ South Africans would still not be able to interfere in its operational mandate.

The proposal will be taken to branches for further discussion before it is tabled before the national conference in December for possible adoption as policy.

On calls for a state bank‚ Godongwana said: “Our intention is that by the time we get to the conference‚ we should have clarified [the formation of a state bank].”

In his closing address to the conference, President Jacob Zuma emphasised that the party had come out of a week of discussions united.

This is despite reports of heated debate‚ especially around issues on economic transformation‚ land expropriat nationalisation of the Reserve Bank and the term “white monopoly capital”.

“This conference strengthened the culture of robust internal debate in the ANC‚” he told delegates yesterday afternoon.

“We came here first and foremost to review the policies of the ANC and to assess whether we are still on course with the execution of the goals of the national democratic revolution.” — TMG