Finance Minister Pravin Gordhan announced the proposed amendments on Monday. They tighten the rules on shareholding in the central bank in a bid , the government says, to stop the Bank's independence being undermined by private shareholders whom the government claims are motivated solely by profit to the detriment of the national interest.
Chief government spokesman Themba Maseko said yesterday: "Our view is that the process we are implementing is fully in line with existing procedures and regulations."
The Reserve Bank is one of the few central banks with private shareholders. The system was designed to give ordinary South Africans a chance to own a small number of shares.
Shareholders have no say in the operations of the Bank or in drafting monetary policy, but some investors have bought shares in the names of family members and friends, circumventing shareholding limits, to gain votes and therefore more influence. They have disrupted Reserve Bank general meetings, using time-wasting tactics to press their demands.
German shareholder Michael Duerr has said he will approach the International Centre for the Settlement of Investment Disputes if the concerns of minority shareholders are not met.
Source: Times Live
With all respect, the South African Goverment is breaking international law! Just read the bilateral investment treaty between South Africa and Germany and you will see, without beeing a lawyer, that the goverment is breaking this treaty!
ReplyDeleteWhy does Duerr is doing this? Money? Yes! Thats all? For sure not - what does he request from the SARB, from the goverment? A independent SARB - controlled by shareholders who are interested in a functioning SARB an independent SARB not only controlled by corrupt politicans!
Thats the onyl way it will work! And the cheapest.
Do your nationalisation and everything will end up in Den Haag at the international tribunal like it was with the bank of international settlement! The result = you will pay Billions of Rand!