Banks show 'their true colours'

Johannesburg - The Congress of SA Trade Unions on Thursday criticised a banking organisation for its decision to abolish its Financial Sector Charter Council for transformation

"The banks are showing their true colours after years of undermining the Charter's attempts to measure financial sector transformation in an independent and objective forum," said Cosatu in a statement.

On Wednesday, Banking Association of SA (Basa) managing directory Cas Coovadia told reporters that his organisation would pull out of the Charter Council "in a responsible way".

He said this was necessary because the council was comprised of organisations which were too diverse.

"A lesson we learnt from this was that the inclusion of a broad spectrum of interests with very different agendas inhibits progress," said Coovadia.

Rather than use the council, Coovadia said affected communities and organisations could appeal directly to the government, who Basa would work with directly.

"The truth is that the banks do not want to be in any structure that they do not control exclusively and in their own profit-maximising interests," Cosatu said.

"They have been unwilling partners in the Charter process from the day they reluctantly accepted that it would include the constituencies representing their customers, the organised labour and community groups."

The Cosatu statement promised that labour and community groups would not accept "divide and rule" and asked government not to co-operate with Basa.

- Sapa