Fin24

SA keen to host planned Brics bank

2012-10-29 15:39

Pretoria - South Africa would be ready to host a planned development bank for the emerging economies grouping of Brazil, Russia, India, China and South Africa (Brics) grouping, it said on Monday.

Finance ministers from the five countries are already working on feasibility studies for the creation of a Brics bank expected to mobilise resources for infrastuctural development projects in developing countries.

"I cannot say if South Africa will be chosen as the site of this institution, but I can indicate that South Africa will be prepared to host such a bank," South Africa's Deputy Minister of International Relations and Cooperation Ebrahim Ebrahim said.

South Africa is hosting the Brics summit in March next year.

Comments
  • xanavin.vonbuchenroder - 2012-10-29 15:54

    I hope they dont want the bank here so that they can steal even more. Dont mess with the Chinese and Russians money.

      art5SA - 2012-10-29 16:17

      I give it 6 months and it will be BANKRUPT! ANC will BREAK IT!

      ike.jakson - 2012-10-29 19:57

      Good point Xanavin!

      Oraniaboer - 2012-10-29 20:16

      Just another move for the ANC to steal money legaly.

  • gordon.trevat - 2012-10-29 15:56

    Of course we'll look after the money for you.....

      mbuso.meh - 2012-10-30 13:49

      Lol...that's the best statement I have read concerning this matter...

  • johan.vanheerden.737 - 2012-10-29 16:05

    Now that we have seen that we can stuff up the SA economy let us see how many other countries we can stuff up

      mthabisi.mpofu - 2012-10-29 16:32

      Notwithstanding our current turmoil regarding the mining industry,we still have a bettter managed fiscal & monetary policy than any of those 4 Bric countries,we ranked 3rd best in the banking system(international benchmark,by the way!!),we have the most sound accounting system in the world & one the best revenue collecting agencies in the world,a prudently run reserve bank & an advanced constitutional system that guarantees protection of foreign investments,these other guys may be bigger in terms of economies of scale by virtue of their populations,but buddy!! we deservedly & rightfully so to host this bank,any allusion to the contrary is devoid of any logic!!!

      steward.debruin - 2012-10-29 16:59

      Nothing wrong with being able to collect revenues, or even having a solid banking system. What is wrong is a political system that believes tax money is their personal piggy bank. Who for some or other reason can't differentiate between the party and the state. That there is the problem, and till they can sort themselves out they will always be seen as corrupt or incompetent.

      ike.jakson - 2012-10-29 19:49

      Another good point, Johan

  • Brad - 2012-10-29 16:14

    Yes, cos China is going to allow that. HAHAHAHAHA Dream on, idiots.

  • brad.ken.18 - 2012-10-29 16:34

    WHAT?????? So you've emptied the coffers of South Africa, now you want to STEAL from other countries! DONT ALLOW IT BRICS!!!!!!

      brad.ken.18 - 2012-10-29 16:36

      In fact, take the "S" off BRICS! This is no longer an emerging market. Its close to bankrupt! STOLEN by the vermin cANCer that rule it!

      J.Stephen.Whiteley - 2012-10-29 20:45

      Actually Greece and Spain. Imagine if BRICS had a common currency and admitted countries like Iran and Uganda.

  • nkululeko.mkhize2 - 2012-10-29 16:40

    OMG ! I wonder how much is this gonna cost the heavily burdened South African tax payer .

  • TshilidziPhuravhathu - 2012-10-29 16:49

    This is good news for the ANC, they could be getting a bigger piggy bank to deep into... the tax reserves are not good enough anymore

      themba.thwala.98 - 2012-10-29 18:45

      Stop sniffing glue Kabelo

  • themba.thwala.98 - 2012-10-29 18:14

    What exactly does this Ebrahim guy except scratch his balls and occasionally make a statement? The cadres have been staffing up state owned development banks and similar institutions such as the DBSA, Ithala, etc, extending loans to “cadres” to buy golf estates and invest in ventures such as Range Rovers. The loans are then written as “irrecoverable.” Ebrahim does not even on what basis SA is “readyL to host the bank. BRIC countries are not run by brainless greedy “cadres” who cannot think beyond fattening themselves, families and friends

  • Shaun Daly - 2012-10-29 19:01

    In other news, my dogs are eager to look after any meat I bring home whenever I go food shopping.

  • rigel.bernard - 2012-10-29 19:39

    and to those who thought south africa enering brics was a bad idea, we are about to reap the benefits

      ike.jakson - 2012-10-29 19:56

      How, my dear?

      themba.thwala.98 - 2012-10-29 20:45

      By “we” you mean the thieving ANC cadres I presume. You are going to do to the proposed BRICS bank what you did to Ithala as reported in Times Live, 13 October 2010, using the Bank as your piggy bank? “Ithala Bank is sinking under the weight of financial mismanagement, dodgy loans worth hundreds of millions of rands, extravagant spending and failure to comply with at least three laws, a series of damning reports show. The beleaguered government lender, funded by KwaZulu-Natal taxpayers, is meant to uplift the province's poor by providing loans to small businesses and entrepreneurs. Instead it has been described by opposition leaders as a piggy bank for the politically connected after lending small fortunes to companies linked to prominent figures. These include Prince Sifiso Zulu, KwaZulu-Natal premier Zweli Mkhize, the bank's suspended CEO and former provincial treasurer Sipho Shabalala and ANC MP Sizani Dlamini-Dubazana. Dlamini-Dubazana was accused of using the money she got to buy President Jacob Zuma's home in Johannesburg. But she said the loan paid for a hotel in Johannesburg. Asked why KwaZulu-Natal taxpayers should fund a Gauteng business, the bank said: “Ms Sizani met all the requirements needed by Ithala to grant the loan. More bigwigs are linked to companies contributing to this year's R322-million write-off revealed in the latest auditor general's report on Ithala. They include KwaZulu-Natal health MEC and top ANC member Sibongiseni Dhlomo and IFP MP Alfred Mpontshane. The financial statements signed off by Shabalala show loans of R140-million were granted to Ithala management, with R86-million in arrears. Asked to justify loans to staff, he said through his spokesman Vuyo Mkhize: “At the time these loans were granted, related-party funding was allowed in terms of Ithala's lending policy. The bank also spent R1.2-million on World Cup tickets. The decision to participate in the World Cup hosting programme for matches taking place in KwaZulu-Natal was taken by the board of Ithala in early 2009,” said Mkhize. “When management became aware of the poor financial position that Ithala was in, it launched numerous attempts to pull Ithala out of its World Cup hosting programme commitments. Sadly, these were all in vain. The Auditor-General's report shows Ithala violated three laws: the Banks Act, for failing to meet the minimum 10% capital adequacy ratio; the Companies Act, for failing to hold an annual meeting, and the Public Finance Management Act, for flouting tender rules. The latter red flag relates to Shabalala's role in promoting contractor Bhombe Chitey for a R169-million contract to build and maintain schools without going to tender. Union federation Cosatu, the SA Communist Party and the DA were outraged when provincial finance MEC Mike Mabuyakhulu gave Shabalala a written warning for failing to follow tender procedures when scores of staff had been fired for far less. In a joint statement, Cosatu and the SACP said deserving companies had been ignored when the tender was irregularly awarded. Mabuyakhulu compromised himself by intervening prematurely, they said. How can you take a guy who plunged the province into the red as treasurer and put him in charge of a bank?” said provincial SACP general secretary Themba Mthembu. The province's DA leader, John Steenhuizen, said the disclosures “confirmed what we have been saying all along - that Ithala is a piggy bank to fund the political elite of KZN Every loan given to a dodgy comrade could have gone to a legitimate business,” he said. Shabalala has been accused of keeping under wraps another damning forensic report completed by KPMG last year. It apparently looked into large loans to companies linked to politicians, including Dolphin Whispers and Zee Net, for developments that collapsed after receiving a total of R104-million. Prominent figures linked to the deals include Nelson Mandela's granddaughter Nandi Mandela. Shabalala denied a cover-up, saying the report pre-dates his time at the bank. Two criminal cases have been opened, he said, but declined to name the companies involved. Shabalala was suspended from Ithala over a R200-million scandal involving Intaka, a company owned by Uruguayan Gaston Savoi, one of whose partners was Shabalala's wife. In August Shabalala's assets were attached in raids in Cape Town, Pietermartizburg and Durban - which also netted a Ferrari and private jet belonging to Savoi. Intaka allegedly supplied provincial health departments with water and oxygen plants at inflated prices. Savoi was arrested with four other people, including three former provincial health department officials, on charges of fraud, money laundering and corruption.”

      J.Stephen.Whiteley - 2012-10-30 07:51

      I tried to give thumbs up to the last two entries but my computer has a glitch. Borrowing from the American run World Bank is one thing, because that Bank is interested in the prospect of repayment. Borrowing from a BRIC Bank would involve the mortgage of State assets and nationalised assets, and I'm sure the ruling party have thought that far. For the rest: see, hear, speak no evil.

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