Members of the Banks Campaign Forum include the ANC, SACP, COSATU, SANCO, the National Consumer Forum, the National Co-operative Association of South Africa and 60 other organisations representing communities of faith, women, youth and small businesses.
22 October 2001
The Financial Sector Campaign Forum, an amalgamation of 60 civil society groups, organisations gathered for a National Workshop at the Parktonian Hotel, Johannesburg today to consolidate demands to make banks and the financial sector as a whole to serve the majority of the people.
The Forum severely attacked ABSA Bank for its decision to scrap the New National Party's R6 million debt for the 1999 general elections. ABSA's decision to scrap the debt amounts to double standards when compared to the strict measures the bank employs to pursue individual debtors, ranging from eviction to redlining and attachment of goods.
Furthermore, ABSA's decision is all the more unacceptable in view of the thousands of Small Medium and Micro Enterprises loan applications it has rejected citing risk factors over the years especially since 1999.
The Forum also called on the Standard Bank and all South African banks to stop evicting people living with HIV/AIDS and orphans from houses they can no longer afford to pay due to their ill health and loss of breadwinners.
The Forum calls for a discussion with affected families, communities and other stakeholders in order to reach a solution which recognises the massive impact of the HIV/AIDS pandemic in our country and advance socio-economic development.
Therefore the Forum resolved to mobilise its members and supporters to protest at the head offices of ABSA and the Standard Bank at a date to be announced in due course
Both ABSA and Standard Bank's actions confirm that South African financial institutions are far from serving the people and contributing to socio-economic development in our country.
We shall be consolidating our demands for the forthcoming NEDLAC Summit on the financial sector, now scheduled to be held in January 2002.
Nevertheless we expresse extreme concern that the NEDLAC Summit will no longer be held in November as originally planned. The delay is unjustified as it effectively protracts the important task of making these financial institutions to serve the people.
The workshop received reports and inputs on the position papers of government, labour, business and community constituencies of NEDLAC in preparation for the Summit. In its consideration of these position papers, it became clear that the proposals from banks seek to avoid fundamental change. For example, the position paper of the Banking Council of South Africa demands the state support the eviction of people from their houses if they cannot pay their bonds. It also proposes the creation of a third tier of banking for the unbanked without discussing a clear role for existing private financial institutions in socio-economic development. The same position paper also leaves the insurance industry, retirement funds and the rest of the financial sector untouched and thus perpetuating the existing inequalities fostered by the financial sector in our country.
The workshop also received a report on the investigation into the Credit Bureaus conducted by the Department of Trade and Industry. The workshop calls on the Department to ensure that this investigation and a report thereof must be finalised as soon as possible in order that the regulation of Credit Bureaus is part of the NEDLAC Summit. The workshop reiterated its call for the need for legislation for state regulation of Credit Bureaus.
CONTACT
Mazibuko K. Jara
Campaign Forum to Make Banks Serve the People
Tel - 011 339 3621
Cell - 082 922 5716
Email- bankscampaign@union.org.za