Wednesday , April 21 2021

EFF pushes for state bank to operate along VBS lines



Economic Freedom Fighters (EFF) leader Julius Malema has revealed that the party is now pushing for the creation of a state-owned bank that will function in the shape of the defunct VBS Mutual Bank.

The party has already sent an account of a private member in Parliament to create a state bank.

This happens when the EFF is patting its back to set the national agenda before next year's general election.

The red berets played a key role in ensuring that the ANC supported the expropriation of land without compensation.

"We want a state bank that works like VBS. VBS was giving people who were building houses on loans and common land titles.

"We need a bank to intervene," Malema told financial officials during the FEP Manifesto, which took place in Bryanston, Sandton, on Friday night.

The assembly was attended by entrepreneurs and bankers, among others.

Malema said some "bad guys contributed to the collapse of VBS," but added that the bank was targeted by the mainstream because municipalities were no longer banking the country's major banks.

"VBS was fresh air in the banking sector in South Africa. I was shocked that EFF did not oppose liquidation after it said we should bail out the bank," he said.

"We should be ashamed of ourselves. It was one of the black owned banks in a sector that is white dominated.

"The money that was supposed to enter the mainstream was now starting to go into a mutual bank. We still have not redeemed it."

He said that VBS failed "because it has been said that all the money from the counties that are there must disappear. There was nothing wrong with VBS getting the money and putting it into other things. The only mistake was when they took [the money] for themselves. "

Municipalities deposited millions in VBS – contrary to the National Treasury's directive not to invest money in mutual banks.

The Supreme Court of Pretoria issued a final order this week to liquidate VBS after the SA Reserve Bank's Prudential Authority has requested the bank's final settlement.

Malema also announced that the FEP would target the financial sector, saying it was not transformed.

"We need to disrupt the financial sector because, without any interruption, it will not be transformed. We need leadership that is not afraid to change the status quo. "

Malema also suggested the need for a powerful education system in the country.

"There should not be a school in South Africa that does not have math, particularly in rural areas. We must give our people all that has been denied them, and at the center of it is education.

"We also have to improve our game when it comes to approval, we can not be a generation of 33%, if you spend 33%, you do not know anything."

One banker present said that the EFF message resonated with most young professionals.

"We do not have another home, that's why people end up getting lost and going to the DA, we're going through systemic problems in the financial sector."

An Indian entrepreneur said: "The perception in the Indian community is that EFF is here to run us over and take over our business."

Malema assured that no Indian or white would be expelled from South Africa.

"They will leave voluntarily because the empowerment of blacks threatens the privilege," he said.

EFF's national president, Dali Mpofu, told the audience: "We have proved that for the EFF to make things happen, we do not necessarily have to be in power.

But it will be better if we are in power. It would be better if you voted for us.

He said the purpose of the meeting was to engage citizens on the burning issues they wanted to see highlighted in the EFF manifesto.

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