Hon House Chairperson, hon members of this House, it is always a privilege to speak in this House on behalf of the DA. The South African Postbank Bill proposes to establish a company owned by the government that will ultimately operate as a regular bank. The Bill proposes a structure similar to that of state-owned, corporatised enterprises. Although government-owned, a board will preside over the bank and therefore enjoy all the perks of a private entity.
In die struktuur van 'n private maatskappy is dit normale praktyk. Die raad van die maatskappy het 'n toesighoudende funksie oor die besluite wat die uitvoerende bestuur van dag tot dag maak. Die raad staan, by wyse van spreke, pa of ma vir die besluite van die uitvoerende bestuur en is verantwoordbaar teenoor die aandeelhouers. Die aandeelhouers van die privaat onderneming wen, indien alles klopdisselboom verloop met die maatskappy. Indien sake skeefloop, verloor hulle dalk al hulle beleggings. (Translation of Afrikaans paragraph follows.)
[In the structure of a private corporation this is normal practice. The board of a private corporation has an oversight function over the decisions the executive takes from day to day. The board is, in a manner of speaking, answerable for the decisions of the executive, and it is accountable to the shareholders. When everything is hunky-dory in the corporation's affairs the shareholders gain, but when things go wrong they may lose their entire investment.]
The South African government will be the sole shareholder in this state entity. As it will be underwritten by government, the success and weaknesses of the bank will also be those of the government. Financial success means profit for the state coffers but, alarmingly, the government will also bear the burden of its failure. If the government has to bail out the Postbank, it is actually you and I, the humble taxpayers, who will pay.
The hon members of this House must think very carefully before they vote yes or no to this Bill. As members, we are representing millions of people in this House. We are representing the people of South Africa. We are voting on behalf of the voters. What will your people, your constituency say? Yes, we are fully aware that people, specifically in poor rural areas, need the financial support of the banking system, but have you told them what the consequences might be? No, you have not.
Did you tell your poor voters that if anything goes wrong, it is they that will have to pay? It is these citizens that will have to pay for the mistakes of the Postbank board - a board they will probably never meet and whose members are barely known to the public. If you say yes to this Bill, you agree that your voters will pay for whatever mistakes the board of the Postbank will make. You will ultimately place the financial fate of many rural, poor citizens in the hands of the Postbank, a government-run entity that will operate in a vigorous financial environment.
South Africa's banking sector is robust and amongst the best in the world, as evidenced during the global financial crisis. There are other solutions to the problem. Why not look at incentives for the formal banking sector to ensure that it offers banking services to the income groups to be targeted by the Postbank? Mzanzi accounts are excellent examples.
Alhoewel die DA krities staan teenoor die Wetsontwerp op die Suid- Afrikaanse Posbank, stel ek dit namens die DA baie duidelik - en ook in antwoord op die opmerking wat agb Vadi gemaak het - dat die DA geensins gekant is teen die oogmerke van die wetsontwerp nie. Die arm en dikwels gesoleerde mense in die landelike gebiede van Suid-Afrika moet op gelykwaardige wyse as burgers van ons land geer en gerespekteer word. Hulle moet aan die gestruktureerde bankwese van Suid-Afrika kan deelneem.
Die fundamentele vraag bly steeds - gegewe die behoeftes van die arm, landelike mense - is dit die rol van die staat om in hierdie behoefte te voorsien? Dit is asof die ANC in die regering senuagtig rondskarrel om oplossings te vind vir die vele sosio-maatskaplike en ekonomiese probleme in ons jong demokrasie.
Die probleme die afgelope 16 jaar het nie kleiner geword nie. Die probleem het gegroei van 'n groot molshoop tot 'n reusagtige berg. Daar moet kollektief na oplossings gesoek word om die arm mense in ons land te help, en ek wil die regering verseker dat die DA onverpoosd werk en na oplossings soek. Gelukkig kan die DA meld dat die mense lank laas in hulle lewe so 'n goeie regering gehad het in die Wes-Kaap soos nou. Dit is onder die leierskap van Helen Zille. Die DA in die Wes-Kaap is 'n uitstekende voorbeeld van hoe om 'n oplossing vir 'n probleem te vind.
Die Wetsontwerp op die Suid-Afrikaanse Posbank probeer iets oplos sonder dat die regering weet wat die onderliggende oorsaak is - die totaal verkeerde medisyne vir 'n lank reeds bestaande siekte, by wyse van spreke.
Die ANC en sy alliansievennote moet besef die rol van die regering moet kleiner word en nie groter nie. Al wat die ANC nou doen is om die druk op die uitgawekant van die staat nog groter te maak - meer personeel, salarisse, ensovoorts.
Kom ons wees eerlik. Staatsentiteite vaar nie goed nie - power, om die minste te s - veral nie die staatsentiteite wat aan die Minister van Kommunikasie verslag doen nie. (Translation of Afrikaans paragraphs follows.)
[Although the DA adopts a critical stance towards the South African Postbank Bill, I wish to state it very clearly on behalf of the DA - partly in response to the remark by the hon Vadi - that the DA is in no way opposed to the aims and objectives of the Bill. The poor and often isolated people in the rural areas of South Africa must be honoured and respected in an equitable way as citizens of our country. They must be able to participate in South Africa's structured banking sector.
But the fundamental question remains - given the needs and requirements of the rural poor - is it the role of the state to provide for these needs? It appears that the ANC in government is nervously scrambling about to find solutions for the many social and economic problems in our young democracy.
The problems have not become any smaller over the past 16 years. The problem has grown from a major molehill to a giant mountain. There must be a collective search for solutions in order to help the indigent in our country, and I want to assure the government that the DA works ceaselessly in the search for solutions. Fortunately the DA can report that it has been a long time since the people had such a good government in the Western Cape as they have now. That's the government under the leadership of Helen Zille. The DA in the Western Cape is an excellent example of how to find a solution to a problem.
The South African Postbank Bill is an attempt to solve a problem without identifying the underlying cause - a totally wrong remedy for a long- standing disease, in a manner of speaking.
The ANC and its alliance partners must realise that the role of government needs to be reduced, not increased. What the ANC is doing at present is to further push up the pressure on the expenditure side of the state - more staff, more salaries, and so forth.
Let us be honest. State entities perform poorly - they do not perform well, to say the least, especially not the state entities reporting to the Minister of Communications.]
In this instance, one can name a few: the SABC, the Independent Communications Authority of SA, Icasa, and Sentech. In this regard, the Business Times wrote:
Sentech, the company responsible for bringing TV broadcasts to South Africans and which is on the verge of financial collapse, granted more than R117 million in contracts that did not go to tender over a period of two years. There are a lot of other examples.
The state entities in the Communications portfolio have no respect for the Public Finance Management Act, the PFMA. Given this track record, there can be no assurance that the Postbank will respect the PFMA. Hon Chairperson and members of this House, your decision to implement this Bill will be on your conscience for the rest of your lives. I rest my case.
Speaking at the Banking Association of South Africa's inaugural banking summit, Mr Michael Katz, the Chairman of Edward Nathan Sonnenbergs said, "The culture of management, rather than ticking boxes, will prevent a crisis." I further quote him from Fin24, "Whatever regulatory environment you have in place, if the culture of management does not recognise these issues, then you will not have a sound bank."
This Bill does not nearly touch the aching root of the problem. In SA Today of 10 September 2010, the leader of the DA, Helen Zille wrote:
Entrenched poverty is, without doubt, the greatest obstacle we must overcome if we are to become a successful and sustainable democracy in which people can live lives they value. Sustained economic growth is an essential, if not sufficient, precondition to overcome poverty. This means devising and implementing policies designed to make our economy more globally competitive so that we attract more investment and create more jobs. Every country that has sustainably lifted its poorest citizens out of poverty has done so by becoming more competitive.
The DA's view is that a government-owned and controlled bank of this nature is not required, and is open to mismanagement and the misappropriation of funds. In this event, taxpayers will be required to serve as the lenders of last resort and fund another failed and unprofitable state-owned enterprise. The DA will not support this Bill. I thank you, Chairperson. [Applause.]