Now you can comment on Malema's SARB bill | Fin24
 
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Now you can comment on Malema's SARB bill

May 25 2018 18:24

A notice of intention to introduce the South African Reserve Bank Amendment Bill in Parliament was published in the Government Gazette on Friday.

It is a private member's bill on which public comments are invited.

Economic Freedom Fighters leader Julius Malema intends to introduce the bill in terms of the Constitution. He wants to do so in the first quarter of the 2018/2019 financial year.

According to the notice, the SARB Act, among other things, deals with the share capital of the bank. The provision of the share capital of the bank and the increase of the share capital by issuing shares enables private individuals, including foreign nationals, to buy and own shares in the SARB.

The bank currently has about 650 shareholders other than government.

The bill seeks to amend the act to make the state a sole holder of the shares of the bank.

The draft bill will provide for the president, in consultation with the minister of finance and Parliament, to appoint the governor, deputy governors and all other directors of SARB.

The draft bill will also set out the role of the minister of finance as a shareholder to exercise the rights attached to the shares in the bank.

Bloomberg reported on Thursday that President Cyril Ramaphosa said he is committed to the independence of the SARB, even as the government considers nationalising it.

The ANC last year adopted a motion calling for government ownership of the SARB, which is one of only a few central banks worldwide which is privately owned.

In terms of the Constitution, the bank is independent from government, and private shareholders have no say over monetary policy.

Interested parties and institutions are invited to submit written representations on the proposed content of the draft bill to the Speaker of the National Assembly within 30 days of the publication of the notice.

Representations can be delivered to the Speaker, New Assembly Building, Parliament Street, Cape Town; mailed to Speaker, P O Box 15 Cape Town 8000; or emailed to bmbete@parliament.gov.za and copied to gumanitk@gmail.com.

Copies of the bill may, after introduction, be obtained from the EFF at PO Box 15, Cape Town, 8000, Attention: Mr Gumani Tshimomola; or by calling 021 403 8868; or by e-mailing gumanitk@gmail.com.

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