Does South Africa need a state-owned bank?

For more than a decade, the strategic focus of South Africa’s largest banks has been digitisation and customer self-service, according to the Financial Sector Conduct Authority (FSCA) Financial Sector Outlook Study.

For more than a decade, the strategic focus of South Africa’s largest banks has been digitisation and customer self-service, according to the Financial Sector Conduct Authority (FSCA) Financial Sector Outlook Study.

Published Apr 3, 2023

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Johannesburg - A recent survey conducted by DearSA has revealed that 94% of the participants do not support the postal amendment bill, 4% aren't fully in agreement, and only 1% support it.

The survey, which resulted in a landslide majority opposing the proposed legislation, was designed to gauge public sentiment on the bill.

In the fiscal years 2021–2022, irregular spending at the South African Post Office increased by R118 million.

During a recent meeting of Parliament's portfolio committee on communication, Postbank's interim CEO Lucas Ndala, admitted failure to follow due procurement processes as a key reason for the bank's irregular spending.

Joyce Nkonyane, a senior manager at the Auditor-General of South Africa (AGSA), said that it was sad that the inappropriate spending was caused by services purchased without the necessary contracts in place and non-adherence to procurement processes.

She said: "We encourage citizens to weigh in on the Postbank Amendment Bill."

DearSA CEO Gideon Joubert added: "The bill, which is currently being debated in the National Assembly, seeks to establish Postbank as an independent state bank, separate from the SA Post Office."

He said that it has sparked much debate, with supporters contending that a state bank could provide affordable banking services while also strengthening the economy. Concerns have been raised, however, about security, controls, and cyber-security, as well as Postbank's dependence on the financially troubled Post Office.

"We encourage South Africans to make their voices heard by visiting the DearSA platform before the deadline on April 30," Joubert added.

DearSA said the campaign was critical in encouraging public involvement and ensuring that the result is representative of all citizens' needs and interests. The organisation said it will contact the minister with a full report on its findings once the campaign is finished.

The Star

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