The time has come for all progressive political parties represented in the National Assembly to put forward legislation that will prevent banks from unlawfully closing accounts of clients based on personal preferences.
Recently, Standard Bank issued a notice to Independent Media and other Sekunjalo companies, stating its intention to close their bank accounts.
This decision has the potential to cause devastating consequences for more than 1 000 workers and their families.
The bank informed the company its accounts would be closed by August 21, following a favourable judgment by the Competition Appeal Court. The announcement sparked shock and outrage from trade unions, political parties, and civil society organisations.
It cannot be overlooked that access to a bank account is a fundamental right for all individuals, and Standard Bank’s determination to close Independent Media’s account is not only insensitive, but cruel and unconstitutional.
How can Standard Bank make a decision that jeopardises the jobs of over 1 000 employees? Such a move raises doubts about the bank’s commitment to supporting the growth of the economy.
The bank’s board of directors must be aware that their actions could directly contribute to unemployment, which in turn will push many families into poverty.
For quite some time now, banks have been unilaterally closing accounts of individuals and businesses they disagree with. This undemocratic practice must be halted. The unchecked power they hold should be restrained; otherwise, we will be heading for a problematic situation.
The most effective way to address this issue is for politicians in Parliament to enact laws that limit the unfettered powers currently enjoyed by the banking industry. Such legislation should advocate for a fair, independent, and transparent mechanism to assess reputational risk. This would prevent banks from using reputational risk as a pretext to target those they disagree with.
It is imperative that progressive political parties take action by proposing legislation to protect individuals and businesses from arbitrary and unjust account closures by banks. This would not only ensure the preservation of individual rights, but also foster a more equitable and just financial system in South Africa.
Cape Times