Government Must Stop Banking With ABSA – ANCYL


The youth League of the ruling African National Congress (ANCYL) has called on government to desist from doing business with big four bank- Absa.

The league’s spokesperson Mlondi Mkhize released a statement on Wednesday saying they will intensify political action and radical campaigns to have the government withdraw its accounts from Absa until the bank pays off all it owes the country.

The league’s comment follows report of a leaked draft document from the Public Protector’s office last week, which  shows that Absa has to pay back R2,25 billion to the Reserve Bank, for the alleged illegal and improper loan, donation or so-called lifeboat made to a now-defunct bank, Bankorp, which Absa acquired in 1992.

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Former Public Protector Thuli Madonsela began the investigation in 2012, but it was completed by her successor Busisiwe Mkhwebane.

Absa, on it’s own part, decried the leaked report saying it gave a wrong impression in that it has some legal inaccuracies which must be corrected.

Meanwhile, the ANCYL said it noted the seriousness of the revelations about alleged criminal conduct at financial institutions, including the role of ratings agency Moody’s, in causing the 2008 financial crisis.

“South Africans must no longer trust these institutions in determining the state of our economy and the political choices that we should make,” Mkhize said.

“Their immorality must be rejected, the money pumped into Absa during the dying days of apartheid was an example of the “systemic looting of public resources by white private capital”.

“The ANC Youth League calls for the release of the report that we believe was intentionally hidden. Government must speedily start a process to recoup all amounts of money that will emerge in that trail.”

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The league said banks’ “racialised extortion” of the public needed further debating. Access to loans, housing bonds and car finance was based on a credit risk assessment model that ensured black youth paid the highest interest rates.

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