ACE WILL BREAK THE BANK
Last week Ace Magashule, that paragon of virtue and good governance currently lording it over the ANC’S engine room at Luthuli House, again called on the MPS he will be sending to the sixth democratic parliament to ensure that the SA Reserve Bank is nationalised. Magashule has a tendency to revive this issue every time scandal catches up with him.
If and when parliament does try to rein in the independence of the Bank, Magashule can expect a formidable fight from Lesetja Kganyago, the governor. This week Kganyago gave a lecture on central bank independence, in which he made it crystal clear that the Bank’s status is not up for negotiation. “Independence is a powerful defence” against bad political leadership, he said.
It would seem Magashule thinks nationalising the Bank would take care of those sections of society he likes to blame for his self-inflicted problems — “Stratcom” and “white monopoly capital”.
The ANC’S highest decision-making body, the fiveyearly policy and electoral conference of branch delegates, resolved in December 2017 to do away with private shareholding in the Bank. This, the delegates hope, will give the government control of it. Too little knowledge.
We have had the government pursue something the ANC called a “developmental state”. Before there was any demonstrable development, it embarked on “radical economic transformation”. In both those projects it was only the bank balances of those closest to the politicians, and those who paid the highest bribes, that were developed and radically transformed. You need only read the many Treasury and public protector reports about funds pilfered from Eskom, Transnet and the municipalities to see radical economic transformation at work.
Had the ANC had its way during the Jacob Zuma years, the Bank would have played an active role in helping the enormous looting project associated with his friends, instead of trying to stop it. It would have been ordered to cut interest rates to please the masses. And of course, in time, the Bank would have been directed to print more money to finance the politicians’ dream projects, like widening the child support grant to include everyone under the age of 21.
Now imagine any politician having the licence to print money. Zimbabwe and Venezuela have had the opportunity to experience this. Look at what’s left of their economies. Well, don’t look that far. Look at VBS Mutual Bank to see what happens.
Cheap route to creating chaos
Most of those ANC delegates don’t even know what the job of the Bank is, other than printing cash and setting interest rates. I should know, because I have met many of them. And in my youth I was twice a member of an ANC branch, in the Eastern Cape and in Gauteng. You only need to produce a R20 note once a year to join the party and start influencing its programmes.
Just R20 (back then it was R12). No questions asked. No qualifications required. No demonstrable knowledge of anything. No record of having been a useful member of society. If you’re loud enough at your branch meetings, you could be the delegate to go and instruct the party to nationalise the Bank.
So if Magashule has it his way, nationalising the Bank will be the first order of business when parliament reconvenes after the elections. Except it won’t be that easy. And it shouldn’t be. The independence of the Bank is enshrined in the constitution.
When Magashule and his economically illiterate MPS launch their assault, Kganyago will be ready for a big fight. As many patriotic people will be.
Most of those ANC delegates don’t know what the job of the Bank is, other than printing cash and setting interest rates