EFF's Shivambu accuses Treasury of misleading MPs on establishment of state bank

Treasury officials, though, said that the formation of the bank had been delayed by the many discussions with affected departments.

FILE: EFF deputy leader Floyd Shivambu. Picture: Sethembiso Zulu/Eyewitness News

CAPE TOWN - Treasury has been accused of lying and misleading Parliament about plans to establish a new state-owned bank.

The finance department on Tuesday briefed Parliament’s Standing Committee on Finance about its annual performance plan.

Officials said that the formation of the bank had been delayed by the many discussions with affected departments.

In March, President Cyril Ramaphosa stated that the country’s banking sector was controlled by just a few banks and South Africans needed more options in terms of accessing finance.

Deputy Finance Minister David Masondo said that Treasury was still confident of establishing a state bank this year.

"We'll also in this financial year... having consulted with relevant departments and completed the proposed framework to establish the state bank, we will be making sure that if it should be finalised from the point of view of setting processes towards establishment of a state bank."

Some MPs welcomed the pronouncement, but Economic Freedom Fighters (EFF) deputy president Floyd Shivambu said that it was just another unfulfilled promise.

"We're just being misled by the department and the ministry in that regard and that is problematic."

Treasury said that the delays were due to banking regulations and requirements.

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