EFF - WE MUST DEFEND VBS BANK!

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EFF Leader Julius Malema
EFF Leader Julius Malema

THE Economic Freedom Fighters (EFF) has come out against the placement of the only black-owned bank in South Africa under curatorship.

The EFF says it believes that placing a bank under curatorship should always be a last resort.

EFF leader Julius Malema said on a Tweet: "We can't have the black owned bank attacked and we fold our arms. We must defend VBSBank."

"Opting for curatorship as the first measure undermines the bank and undermines black people’s participation in the ownership and control of financial services institutions," National Spokesperson Mbuyiseni Ndlozi said.

According to the EFF VBS bank was placed under curatorship was because of an instruction National Treasury issued to Municipalities.

"Instead of allowing the bank to wind down the Municipalities’ deposits over a period of time, National Treasury issued an instruction, knowing that such an instruction will immediately collapse the bank.

It is therefore wrong and unacceptable for Government to engage in activities that seek to undermine and hinder black people’s participation in the financial sector," Ndlozi said.

However the EFF says  VBS is being victimized due to a loan it gave to Jacob Zuma for his house in Nkandla.

He further added that had the bank been a white-owned bank,  that had offered Zuma a loan, they would not be subject to victimization today.

"The EFF was the first to question VBS giving Zuma a loan, but we were led to believe, even by the reserve bank, that it was above board," Ndlozi said.

Ndlozi said the Reserve Bank should create an enabling environment for the existence and protection of black-owned banks.

"The Minister must instruct the Reserve Bank and other shareholders, like the Public Investment Corporation (PIC) to find a long lasting solution," Ndlozi said.

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