Hon Chairperson, sometimes it is just very confusing, listening to the logic of the EFF. Nevertheless, on behalf of the DA, I hereby state that the demise of African Bank represents the biggest destruction of value in the financial services sector since the collapse of Saambou. Analysts indicated that the demise of African Bank was entirely predictable and that the Reserve Bank intervention was, of course, far too late. This brings the effectiveness of the oversight function of the Reserve Bank into question.
Section 69 of the principal Act is hereby amended to expand the actions a bank curator can take, to include the transfer of any of the bank's liabilities and disposal of any of its assets. As it will retrospectively permit the curator of the bank to now transfer and dispose of assets and liabilities to their detriment, they argue that because the bank is not liquidated, they should enjoy a higher preference than they have received under the rescue package.
There is an impasse as to whether the Bill infringes on constitutionally protected property rights found in section 25 of the Constitution. Two legal opinions indicated that section 25(1) is applicable - and this now allows the deprivation of property if it is in terms of a law of general application. It might be difficult for the EFF to digest that right now. This law, then, does not provide for arbitrary deprivation.
So, noting the different legal opinions presented to the committee, the DA is aware that we need urgent legislation to give effect to the restructuring of the new bank. We noted the curator's view that the company or bank is insolvent and that section 69(3)(b) is the existing power in the Act, currently. The amendments are merely bringing curatorship up to date.
In conclusion, the curator stated that the only answer is from the consortium of banks to restructure a financial solution, noting that liquidation should be avoided at all costs, as the reputation of the banking sector and the economy of South Africa should now be protected. I thank you.