The African Transformation Movement (ATM) is calling on Finance Minister Enoch Godongwana to intervene in Standard Bank’s move to close Independent Media’s bank account.
Standard Bank cited concerns about reputational damage.
However, the ATM pointed out that discredited companies including Glencore and Steinhoff have retained their banking facilities.
“Steinhoff, despite being implicated in a massive financial scandal that defrauded people of billions of rands, did not face the same repercussions,” said ATM president Vuyo Zungula.
“Similarly Glencore, a company that has been embroiled in numerous controversies, has not lost its banking privileges.”
Zungula said the disparate treatment raises questions about fairness and consistency in the financial sector, noting that the conduct left many perplexed about the criteria banks use to make such determinations.
He regretted that the consequences of Standard Bank’s decision extended far beyond the boardroom.
“Independent Media will inevitably be forced to lay off workers due to the loss of its bank account,” Zungula said.
“This will contribute to the already grave issue of unemployment in our country and the economic hardships faced by our citizens.”
He told Godongwana that the bank’s actions also amount to an assault on media freedom.
“A free and independent media is the cornerstone of a functioning democracy, and any threats to this freedom must be taken with the utmost seriousness.”
He said based on Independent Media’s struggles, media organisations across the nation would not feel comfortable reporting freely and fairly.
“It is my sincere belief that this decision by Standard Bank represents an abuse of power, one that threatens the fundamental principles upon which our democracy is built.”
Zungula further told Godongwana that the ATM previously called for a constitutional amendment to declare access to a bank account a constitutional right.
“This would ensure that financial institutions act responsibly and consistently, upholding the principles of fairness and justice in their dealings with all entities.”
In conclusion, he said Godongwana should urgently consider the gravity of the situation and take immediate action to safeguard citizens’ livelihoods.
Follow @SundayWorldZA on Twitter and @sundayworldza on Instagram, or like our Facebook Page, Sunday World, by clicking here for the latest breaking news in South Africa.
