New Postbank won't replace proposed state-owned bank, MPs told

The department of communications and digital technologies' Moses Ntshabele said the Postbank wass already a state-owned institution under the Post Office. He said the new Postbank would not replace the idea of a state-owned bank.

A South African Post Office branch. Picture: @PostofficeSa/Twitter

CAPE TOWN - A newly designed Postbank to service the poor and unbanked will not replace the much talked about state-owned bank.

That's the word from the Department of Communications and Digital Technologies, which on Wednesday briefed Parliament about the Post Office's separation from Postbank.

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

MPs have heard how applications for the Postbank to stand alone, with the Post Office as sole shareholder, were still being processed.

Communications Committee member Cameron McKenzie asked the Post Office whether the Postbank would be the state-owned bank that the African National Congress (ANC) and Finance Minister Tito Mboweni had been pushing for.

“We know the ANC congress resolution was around the formation of a state bank, and in fact, the ministers agreed that this process is in part to meet that congress resolution. It really fills me with that sense of disquiet to hear,” he said.

The Department of Communications and Digital Technologies' Moses Ntshabele said that the Postbank was already a state-owned institution under the Post Office. He said that the new Postbank would not replace the idea of a state-owned bank.

"So for us, we are no referring to it as a state bank in the context of our product discussion. it will be a licensed state-owned bank, not necessarily a state bank in the context of the discussion taking place,” he said.

The committee has also heard how the Post Office was too bankrupt to qualify as a bank controlling company.

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