Treasury officials, however, said the establishment of the bank was delayed by numerous discussions with relevant departments.
CAPE TOWN – The Treasury has been accused of lying and misleading Parliament about plans to create a new public bank.
The finance ministry briefed Parliament’s Standing Committee on Finance on its annual performance plan on Tuesday.
Officials said the establishment of the bank was delayed by numerous discussions with relevant departments.
In March, President Cyril Ramaphosa said the country’s banking sector was controlled by only a few banks and South Africans needed more options in terms of access to finance.
Deputy Finance Minister David Masondo said the Treasury remains confident in establishing a state bank this year.
“We will also during this exercise … after consulting the relevant departments and completing the proposed framework for the establishment of the state bank, we will ensure that if it were to be finalized from the point of view of the establishment of processes to a state bank. “
Some MPs welcomed the statement, but Economic Freedom Fighters (EFF) Vice President Floyd Shivambu said it was just another broken promise.
“We are just being misled by the department and the ministry in this regard and it is problematic.”
The Treasury said the delays were due to banking regulations and requirements.
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