Yes, but even that takes some time to cure, you know.
Secondly, it allows for the nomination of directors by a broader base of South Africans and for the broadening of representation on the Board of the bank. Thirdly, it provides for the establishment of a panel for the election of directors. Fourthly, it defines clear criteria for the disqualification of persons from serving on the Board. Fifthly, it provides for the confirmation of Board nominees against fit and proper and fiduciary criteria. Sixthly, it clarifies the powers and functions of the Board of the Reserve Bank. Lastly, it provides for the possibility of the Governor and Deputy Governors to be reappointed to serve a term of less than five years.
These amendments have won praise from the international community. In its 2010 survey of South Africa, the Organisation for Economic Cooperation and Development, OECD, described the Reserve Bank Amendment Bill as "a sensible response to the problem of rogue shareholders seeking to undermine the independence of the SA Reserve Bank".
In concluding I would like to touch upon another important principle regarding the Reserve Bank. The role of the Board of the Reserve Bank should never be confused with the role of the Monetary Policy Committee. The MPC, which is constituted by the executive directors, that is, the Governor and the three Deputy Governors, as well as professional members of the Reserve Bank, implements the monetary policy framework of the country. The Board of the Reserve Bank is purely a governance and management board, not a policy board. In this regard, the independence of the Reserve Bank in meeting its constitutional mandate remains very intact, despite the current amendments.
I would also like to explain the urgency of the Bill. The Board of the Reserve Bank currently has three vacancies. It is the desire of the Governor and government that these vacant positions be filled with fit and proper persons with the assistance of the panel. This would also mean that the best candidates should be available for election at the Reserve Bank's AGM, due later this year.
Secondly, both Cabinet and the Governor felt that the potential destabilisation of the Reserve Bank by a few shareholders warranted urgent attention. I would like to take this opportunity to thank the Governor of the Reserve Bank and her legal team for their hard work and assistance in drafting this Bill, Deputy Minister Nene, the National Treasury Director- General Lesetja Kganyago and his team for contributing to the Bill, and the Standing Committee on Finance, under the steady hand of Mr Thabadiawa Mufamadi, for their sterling work with regard to the processing of the Bill.
I hereby request that this House pass the South African Reserve Bank Amendment Bill 2010. Thank you.