Banks deny donations racism claim

Reply to minister’s allegations

SOUTH Africa’s major banks, Absa and FNB, have defended themselves against accusations by Arts and Culture Minister Nathi Mthethwa that each donating R10 million to victims of the Knysa fire was based on racism.

Mthethwa said the donation would only benefit “rich white victims of the fire” that destroyed many homes in the Western Cape and Eastern Cape provinces.

Mthethwa had told ANC supporters during a cadres’ forum in Molweni Township, west of Durban, at the weekend that the banks had failed to assist many black families whose informal settlement homes were also destroyed, and others who had previously suffered the same disaster.

“The banks have donated R10 million each to assist white people. The FNB benefits from us (black people) who bank with it,” he said.

Both Absa and FNB have confirmed donating the money, but denied selecting only white residents.

Mthethwa said families who live in informal settlements never received financial assistance, although their houses are destroyed by disasters on “a daily basis”.

“But comrade, just ask yourself how the few cents you put into Absa assist you whenever there are disasters,” he said.

He said the bank’s “selective response” had justified President Jacob Zuma’s stance on white monopoly capital, which had made him an enemy of the racist financial sector, and their supporters, who were senior leaders of the ANC.

Nationalisation

Zuma had been calling for the nationalisation of the country’s resources, and the creation of state-owned banks to provide financial assistance to black people as they were excluded by commercial financial institutions.

“We are now trying to rebuild the Post Office to assist black people.”

He said he felt pain when the banks excluded informal settlements in Knysna.

“Shacks were destroyed even by storms, but these banks never donated even a cent, and they are not prepared to do it,” he said. Mthethwa said black people should rally behind Zuma in the fight against white monopoly capital.

In a written response, Absa said it had made the donation after assessing its ability to assist in severe emergencies.

“In March this year, Absa provided assistance to people affected by the Hout Bay fire and, in the previous year, for drought relief in the Free State,” the statement read.

Lwazi Stuurman, FNB spokesperson, said the bank’s donation would cover families whose homes were destroyed in the Eastern and Western Cape.

“Our approach is to focus on helping the poor and disadvantaged communities that have been severely impacted by the fires in the affected provinces, including helping with food, clothing, infrastructure, housing in informal settlements and rebuilding schools for these communities,” he said.

FNB had also appealed to members of the public and companies to send donations to its various branches.