Bank with Ithala, urges MEC Zikalala

MEC Sihle Zikalala has urged members of the provincial legislature to participate in radical economic transformation by moving their personal accounts from mainstream banks to Ithala.

Speaking when his Department of Economic Development, Tourism & Environmental Affairs appeared before the provincial finance portfolio committee at the provincial parliament in Pietermaritzburg on Friday, he said Ithala would obtain its licence to operate as a fully-fledged bank within six to 12 months.

Zikalala said he banked with Ithala: “I hope you honourable members will open your accounts with Ithala and shift your finances to Ithala.”

Zikalala said negotiations with the provincial and national departments and SA Reserve Bank to license Ithala began in mid-2016.

He said during the engagements, the provincial economic development department was given November 18 as a deadline to submit required documents, which they did.

“We are now awaiting their assessment whether it has qualified to be a bank.”

Zikalala was hoping the bank would be fully licensed soon. “So far we have agreed with the provincial treasurer, the Reserve Bank and the national treasurer. We have met deadlines. It is on their side to process and finalise our application. I think Ithala would be functional, and we have to support it,” he said.

Provincial finance portfolio committee chairperson Sipho Nkosi urged Zikalala to fasttrack the process.

IFP MPL Lourens de Klerk wanted to know if radical economic transformation was “a dream or a reality” since the provincial government was facing financial difficulties.

“It is obvious for everybody to see that there are budget cuts, that there is not enough money. How is the department going to achieve this (radical economic transformation) if it started on the back foot with no real money allocated to it?” he asked.

Zikalala said this was achievable if there was commitment within the government and MPLS leading by committing themselves to banking with Ithala, which he said would be among one of the first banks to achieve transformation.

Progressive Professionals Forum president Mzwanele Manyi told the ANC Youth League at the University of Kwazulu-natal in Durban on Friday that the Preferential Procurement Policy Framework Act (PPPFA) was a hindrance to transformation as it “favours white monopoly capital”.

“The PPPFA says that when you are assessing a tender, 90% of the points must go to a company that is going to charge you less.

“Is it possible for a (small business owner or individual) to compete with a Raymond Ackerman? Why is it that the government doesn’t understand this?

“When we go to the ANC’S policy (conference) it must be made very clear that this PPPFA does not allow for radical economic transformation. “You can’t do (bit by bit) radical economic transformation. Something must happen here and now.

“The ANC has got a majority in government so that it can implement the will of the people,” he said.

Former SABC chief operations officer Hlaudi Motsoeneng said he had started transforming the public broadcaster when he was suspended.

He said he had done away with the requirement of experience expected from young recruits so they could be employed permanently.