Treasury pays +/-R500m per day in interest to private banks – State Capture

By Mxolisi KaNkomonde

Ruperts et al

 

The South African Reserve Bank (SARB) is not independent and its operations are privatised although it is a creature of statute. SARB is managed by a board of 15 directors where 7 are appointed by the President in consultation with the board and the finance minister, and the other 8 are elected by private shareholders. SARB is therefore controlled by private shareholders.

SARB prints bank notes and coins and then issues them for use in the Republic but 95% of the money in SA is created by private banks with only 5% created by SARB. In effect SARB doesn’t control money supply in the Republic outside setting the REPO rate.

The Finance Minister has an oversight role over the entire monetary system which benefits private banks and works against the government and the public.

During apartheid, SARB was the bank to which government looked for finance in cases where tax revenues couldn’t cover the national budget. This finance came at low interest rates. However this has since changed with the advent of democracy. Today, the private banks appoint their own finance minister in order to keep the parasitic relationship between SARB, government,Treasury and the South African public.

South Africa is currently sitting on a debt worth R2 Trillion after 22yrs of majority rule while the Apartheid regime had R68bn after 41yrs so SARB, private banks, treasury and finance ministers are raping this country though debt with their parasitic relationship.

With a budget of R150bn annually, SA currently spends over R500m a day on interest to private banks.

The Apartheid regime had massive industrial and government expenditures with huge projects such as SASOL, Council for Scientific and Industrial Research (CSIR), Bantu Universities, Koeberg, Phelindaba and a huge army yet national debt did not explode to the levels we have seen since 1994 as if the country was engaged in a war.

There has been a lot of talk about state capture and patronage but no focus has been brought to this massive corruption going on in South Africa where a country with high unemployment, inequality and poverty funds a patronage network led by different finance ministers in excess of R500m per day.

In December 2015 President Jacob Zuma reshuffled his cabinet by firing Fianance Minister Nhlanhla Nene without consulting banking oligarchs in South Africa and within a few days banking shares tumbled. Banking CEOs quickly held an emergency meeting with ANC top leadership to plead for a reversal of the decision and the appointment of a finance minister who would retain the patronage network currently going on at Treasury which impoverishes every South African regardless of race.

The South African Reserve Bank, Treasury, the finance minister and private banks could be in serious violation of the constitution which stipulates that SARB should be independent but Parliament and the public at large have failed to arrest this problem.

10 Comments on "Treasury pays +/-R500m per day in interest to private banks – State Capture"

  1. Future Growth Economic Terrorism: Corporate SA and its associates , lack morals, and diplomacy skills. Your actions are crass and highly lacking in respect and finesse. Your differences with Guptas an SOE’s aside, you don’t take harsh action against clients by closing accounts, and announcing it to the world, without consultations and sensitivity. So your “bible” King Code and guidelines on business ethics are just useless sermons , that you preach, but never practice! Your actions can be likened more to a lynching, than “decisive” action! We not fooled by your lies and spinning, in the media(that you own)your actions remain barbaric!!

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  5. Just note though that Old Mutual disassociated itself from FutureGrowth’s action the very same afternoon that FutureGrowth issued it. I think its worthwhile highlighting that because the narrative is not that neat and linear.

  6. Future Growth has jumped the gun, and whatever justification will not convince. Revelation of how central banks under Treasury oppress people and serve the interests of business conglomerates.
    It is sheer brutality and greed, while the world is divided into opulence and indigent lifestyles.
    Minister of Finance says 5 people cannot benefit more than 500 000 people by plundering state owned enterprises.
    On the other hand, he is equally captured by monopoly capital and the country is sitting on R2 trillion debt, that’s why the increase in interest rates, tariffs and taxes.
    The public pay the price while monopoly capital enjoys the benefits.

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  9. I read the blog without even interrogating the facts. I cud tell that the writer embraces apartheid. How sad

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