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Send  Print  Share  RSS  Twitter  18 Nov 2010

Financial Sector Not Helping Blacks: ANCYL


(Floyd Shivambu and his ANCYL scamps are ill-educated racists. And rude to boot. But it's fun to read their rubbish sometimes).

Johannesburg, Nov 18 (I-Net Bridge) - The financial sector was not helping the country's black majority, ANC Youth Leagues spokesman Floyd Shivambu said on Thursday.

He was addressing a conference of the Association for Black Securities and Investment Professionals (ABSIP) in Sandton.

Banks are creating an indebted middle class, Shivambu said, adding that while this group of people were driving luxury vehicles, they owed a lot of money to the banks.

They own nothing but they owe.

Shivambu went on to criticize SA's banks for not funding developmental research or industrial development.

He also took banks and insurance companies to task on price collusion.

They are in fact all working together! he said.

Turning to public sector funding, he added that the Industrial Development Corporation (IDC), Land Bank and Development Bank of SA (DBSA) were useless.

However, this uselessness must not necessarily be blamed on the state as there were so many reasons why these institutions are failing.

Shivambu said lazy thinkers always attributed inefficiency to state ownership when this was not the case.

Turning to a remedy for the financial sector, Shivambu added that the ANCYL advocated the creation of a state bank through the recapitalisation of Post Bank or the creation of a new entity with capacity to provide housing and vehicle loans.

All public accounts would be shifted to the state bank and the IDC would be linked to it as well.

Shivambu said the state bank would then heavily invest in new incentives that would beneficiate and industrialise SA's resources.

The bank must also finance import substitution - our cell phones, fridges, TVs - how many of them are manufactured here? We need to look into this.

He added that the National Housing Finance Corporation should be recapitalised to fund decent housing development for income groups who cannot get loans from private banks, and called for new legislation that limited the repayment of housing loans to ten years.

Only state ownership can lead real development as the private sector is only interested in profits and incapable of leading transformation.

Shivambu noted that the state would be more considerate of the spatial development needs encountering South Africa because of the history of apartheid.

Turning to one of the ANCYL's frequent demands - the nationalisation of the mines - he explained that this was because mineral resources remained the backbone of the SA economy.

However, in conclusion, Shivambu quoted from a speech made by Nelson Mandela in 1957.

The Charter does not advocate the abolition of private enterprise, nor is it suggested that all industries be nationalised or that all trade be controlled by the state. All people shall have the right to trade where they choose, to manufacture and to enter all trades, crafts and professions ... the right to do these things would remain a dead letter without the restoration of the basic wealth of the country to the people, and without that the building of a democratic state is inconceivable.

I-Net Bridge, Tel: +27-11-280-0819,

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