Banks urged – again – to clarify their stance on EWC

For the second time in a month, the Institute of Race Relations (IRR) has written to South Africa’s major banks requesting clarity on their position regarding Expropriation without Compensation (EWC).

The follow-up letter sent to the major banks yesterday comes after the IRR’s initial request in the first week of August for banks to clarify where they stood on the pressing issue of property rights and the ANC’s stated objective of pushing for expropriation of property without compensation.

In a statement, the IRR points out that it was prompted to write to the banks by President Cyril Ramaphosa’s remarks about “land redistribution without compensation” at the ANC’s recent policy conference. 

Ramaphosa told the conference that the ANC ‘must undertake to make a dramatic, as well as a disruptive, lasting change’, adding that ‘despite the setback of our efforts to amend Section 25 of our [sic] Constitution, we must continue to pursue all available options, including through legislation, like the Expropriation Bill, to implement the resolution of our 54th Conference on land redistribution without compensation’.

The IRR says: ‘The silence of the major banks on EWC is very concerning. Their clients, who are ordinary South Africans, deserve to know their position on this matter.’

For this reason, the Institute decided to send a follow-up letter asking banks: 

1. What is your view on Expropriation without Compensation, as well as the Expropriation Bill that has been proposed by the ruling party?

2. Do you support the property rights of South Africans?

3. Do you consider the financial interests of your clients to be connected to their property rights?

4. May you make it clear to South Africans that you are willing to stand up for their financial interests, as it’s your moral and fiduciary responsibility to act on behalf of your clients?

5. Are you willing to unapologetically join the IRR in its campaign to ensure that the property rights and the financial interest of your clients are protected against policies that will harm them?

6. The banks, through BASA, might consider themselves committed to the position that Section 12(3) of the Expropriation Bill must be deleted entirely. But since Ramaphosa has re-committed the ANC to EWC through the Expropriation Bill the [name of bank] might have changed its position. This is the question, have you changed your position?

The IRR says that ‘(time) is of the essence, as the Portfolio Committee on Public Works and Infrastructure is likely to put the Expropriation Bill forward for adoption by the National Assembly in two weeks, on or around 14 September 2022’.

Said Mlondi Mdluli, IRR Campaign Manager: ‘We will not rest until all the major banks have provided clarity on their position on EWC. If it means that we have to physically go to their head offices to seek answers then we will do so.’