Amid the glaring shortcomings of the Postbank in recent weeks in the payment of grants, the bill that officially separates it from the post office has now become law.
According to a notice published in the Government Gazette on Friday, President Cyril Ramaphosa agreed to the South African Postbank Limited Amendment on Wednesday.
The move is viewed as a step towards the government creating a fully-fledged state bank.
As the Postbank battles its way through the social grants crisis without a fully functional board, it will now be able to work towards becoming a full-service bank through the establishment of a bank holding company.
It has to date, however, failed to meet the reserve bank’s requirements for a banking licence.
But the Democratic Alliance (DA) says separating the Postbank from the post office, from which it derives income, will make it even less financially viable than it currently is.
The party’s Dion George says he doesn’t agree with the African National Congress (ANC)’s position that the Postbank will do better than commercial banks in assisting small businesses and budding entrepreneurs.
“It is not required, and it also will require a cash injection from the National Treasury to make sure that it is viable from the outset. And then it will no doubt require ongoing bailouts, like every other state-owned enterprise.”
The DA says it won’t support the establishment of this new bank, nor any appropriations to fund it.
-EWN
In other news – Five of the most shocking Mzansi celebrity breakups this year
Here is the list of surprising South African celebrity breakups; relationships that came to an unexpected end! As the year progresses, we have already witnessed the demise of several local and international celebrity relationships, catching many by surprise. Here are some celebrity breakups that no one saw coming:
In May of this year, sources revealed that Emtee had filed for divorce and moved out of the flat he shared with his estranged wife, Nicole Chinsamy. The reasons behind their split remain undisclosed, leaving fans shocked by the sudden end to their relationship. Read More