Malema's private member's bill to nationalise SARB gets mixed reaction during public hearings

CAPE TOWN - Economic Freedom Fighters (EFF) leader Julius Malema's private member's bill aimed at nationalising the South African Reserve Bank (SARB) has a received a mixed reaction during public hearings.

Some organisations like labour federation, COSATU, voiced support for Malema's South African Reserve Bank Amendment Bill, while others warned that it could have serious repercussions for the economy if the current model was tampered with.

COSATU, the National Treasury and other organisations made submissions before the Standing Committee on Finance on Wednesday, seven years after the bill was first introduced in Parliament.

The Standing Committee on Finance continued public hearings on Malema's private member's bill, which was submitted in 2018.

The bill aims to amend the South African Reserve Bank Act and proposes changes to the appointment of the bank's directors.

The bill also wants the state to be the sole shareholder of the central bank, which has two million shares held by private and foreign investors.

COSATU's Tony Ehrenreich said that they supported this move.

"The ownership of the South African Reserve Bank must only be vested with the state in line with international norms."

But Christopher Axelson, National Treasury's deputy director-general for tax and financial sector policy, said they don't support the bill, warning that it could have serious implications.

"The governance arrangements could also be weaker and may negatively impact the independence of the SARB and so we don't support the bill."

The committee will now further process the submissions before a motion on the bill's desirability is considered.