What the proposed changes to the South African Reserve Bank mean for South Africa
The nationalisation of the South African Reserve Bank (SARB) will come up for discussion in Parliament this week
Image: Pixabay
The nationalisation of the South African Reserve Bank (SARB) will come up for discussion in Parliament this week when the finance standing committee holds a public hearing to amend the law governing the central bank.
The bill, a private member's first introduced in Parliament by EFF leader Julius Malema, seeks to amend the SARB Act to make the State the sole shareholder of the shares in the bank.
The Parliament programme shows that the Standing Committee on Finance will hold public hearings on the South African Reserve Bank Amendment Bill in a virtual meeting platform on Wednesday.
The hearing comes after members of the public, stakeholders and stakeholders were given an opportunity to comment on the SARB amendment bill until June 30.
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Those still wishing to make written submissions and indications to make oral submission have until Monday at 12 midday to do so.
The bill was first introduced in Parliament in August 2018, but it lapsed in May 2019 during the end of the sixth Parliament only to be revived in October the same year.
In 2020, the EFF and the parliamentary legal services had briefed the standing committee on finance on the bill and conducted a first round of public hearings, which were held in November 2018.
But, the bill lapsed four years later in May 2024 in the sixth Parliament and then got revived again in July 2024.
After the Red Berets pushed for the bill to be on the parliamentary programme for consideration in the new administration, the standing committee on finance resolved in September last year to conduct a second round of public hearings after it was briefed by the Parliamentary Budget Office on its analysis and assessment of the bill's socio-economic impact.
When there was no progress in processing of the South African Reserve Bank Bill, EFF MP Hlengiwe Mkhaliphi took up the matter with the National Assembly Programme Committee towards the end of March and was promised a response at the next meeting.
Whereas House Chairperson Cedric Frolick had indicated in April that the Standing Committees had been prioritising the processing of the report on fiscal framework and revenue proposals, an advertisement was placed for public comments from June 3 ahead of the public hearing this Wednesday.
The bill, in its current form, seeks to delete certain definitions in SARB Act and provide for the appointment of certain board of directors rectors by the Minister of Finance.
"A current director of the bank or any member of the general public may nominate persons to serve as appointed directors of the bank in the manner as may be prescribed," reads the bill, adding that appointed board directors shall hold office for three years.
The bill proposes that the State should be sole shareholder of shares in the SARB.
'The rights attached to the shares in the bank must be exercised by the Minister on behalf of the State."
The SARB's shareholders were 650 when the bill was introduced in Parliament.
The bill also provides that the Minister shall appoint two firms of public accounts to act as auditors of the SARB for every financial year.
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What the proposed changes to the South African Reserve Bank mean for South Africa
The nationalisation of the South African Reserve Bank (SARB) will come up for discussion in Parliament this week Image: Pixabay The nationalisation of the South African Reserve Bank (SARB) will come up for discussion in Parliament this week when the finance standing committee holds a public hearing to amend the law governing the central bank. The bill, a private member's first introduced in Parliament by EFF leader Julius Malema, seeks to amend the SARB Act to make the State the sole shareholder of the shares in the bank. The Parliament programme shows that the Standing Committee on Finance will hold public hearings on the South African Reserve Bank Amendment Bill in a virtual meeting platform on Wednesday. The hearing comes after members of the public, stakeholders and stakeholders were given an opportunity to comment on the SARB amendment bill until June 30. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Those still wishing to make written submissions and indications to make oral submission have until Monday at 12 midday to do so. The bill was first introduced in Parliament in August 2018, but it lapsed in May 2019 during the end of the sixth Parliament only to be revived in October the same year. In 2020, the EFF and the parliamentary legal services had briefed the standing committee on finance on the bill and conducted a first round of public hearings, which were held in November 2018. But, the bill lapsed four years later in May 2024 in the sixth Parliament and then got revived again in July 2024. After the Red Berets pushed for the bill to be on the parliamentary programme for consideration in the new administration, the standing committee on finance resolved in September last year to conduct a second round of public hearings after it was briefed by the Parliamentary Budget Office on its analysis and assessment of the bill's socio-economic impact. When there was no progress in processing of the South African Reserve Bank Bill, EFF MP Hlengiwe Mkhaliphi took up the matter with the National Assembly Programme Committee towards the end of March and was promised a response at the next meeting. Whereas House Chairperson Cedric Frolick had indicated in April that the Standing Committees had been prioritising the processing of the report on fiscal framework and revenue proposals, an advertisement was placed for public comments from June 3 ahead of the public hearing this Wednesday. The bill, in its current form, seeks to delete certain definitions in SARB Act and provide for the appointment of certain board of directors rectors by the Minister of Finance. "A current director of the bank or any member of the general public may nominate persons to serve as appointed directors of the bank in the manner as may be prescribed," reads the bill, adding that appointed board directors shall hold office for three years. The bill proposes that the State should be sole shareholder of shares in the SARB. 'The rights attached to the shares in the bank must be exercised by the Minister on behalf of the State." The SARB's shareholders were 650 when the bill was introduced in Parliament. The bill also provides that the Minister shall appoint two firms of public accounts to act as auditors of the SARB for every financial year.
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