26 June 2008
The SACP welcomes the recommendations released yesterday by the Competition Commission into the cost of bank charges levied to consumers by the banks.
This investigation by the Competition Commission was instigated as part of the SACP-led struggle for the transformation of the financial sector. This report proves what we have always been saying that South African banks are fleecing consumers through layers and hierarchies of largely hidden bank charges.
We also welcome the recommendation that the National Payment Scheme must be overhauled and be democratised so that it is not controlled and dominated by the big banks. This is also necessary as part of creating the new environment for the creation of a viable co-operative banking sector in our country.
Whilst we will study the full report upon its release, the SACP is keen to continue to mobilise all its partners under the banner of the Financial Sector Coalition Campaign to monitor the implementation of the recommendations. The tendency by the banks to believe that they alone are best placed to deal with the way forward should be rejected. The banks all the time are quick to reject any form of government regulation.
We can today indeed say as the SACP that we are vindicated. When we took up the financial sector transformation campaign we were called all manner of names including by some in government who have appointed themselves spokespersons of the financial sector. More still needs to be done to break the back of these monopolies.
Amongst other measures that need to be speeded up is the implementation of the necessary support for the establishment of cooperative banks.
We however call upon the Competition Commission to extend its investigations into what is clearly collusion amongst banks on the raising of mortgage interest rates.
Issued by the SACP
Contact:
Malesela Maleka
SACP Spokesperson – 082 226 1802