home Economics, Featured, Politics READ: BLF’s FULL submission to the Parliamentary Standing Committee on Finance

READ: BLF’s FULL submission to the Parliamentary Standing Committee on Finance

By BO Staff Writer

Today, the Black First Land First (BLF) movement submitted it’s contribution to the Parliamentary Standing Committee on Finance. In it’s submission the movement highlighted its ideas on the transformation of the financial sector and how to it wishes to “end white monopoly capital to ensure economic liberation of all.”

The session ended in a heated exchange between BLF members and African National Congress (ANC) MP Yunus Carrim, who BLF leader, Andile Mngxitama, accused of being biased and a defender of white monopoly capital.

Read BLF’s FULL submission below:

Submissions on the transformation of the financial sector to the joint sitting of the Standing Committee on Finance and the Portfolio Committee on Trade and Industry

Brief background

Black First Land First (BLF ) is a black consciousness revolutionary movement registered with the independent electoral commission. BLF believes that there can be no liberation for black people without the resolution of the land question. Furthermore, BLF believes that South Africa remains a white supremacist country despite the 1994 democratic “breakthrough”.

Amendment of the submission

The initial submission to this committee had to be slightly amended to take care of the somewhat changed dispensation at Treasury. When BLF made the initial submission, Pravin Gordhan was Minister of Finance. This has changed, thank God! The BLF submission then put a lot of emphasis on how the former Minister of Finance was the real stumbling block to the transformation of the economy. This is so because Pravin Gordhan is deeply conflicted by his close business association with white monopoly capital (WMC).

BLF wanted this committee to take a clear view on whether a minister could serve the poor if he had shares in all the major corporations of white monopoly capital.

We thank President Zuma for removing Pravin Gordhan as Minster of Finance. We hope Minster Malusi Gigaba shall not give us Pravin reloaded policies. We need a clear break from the pro WMC macro economic framework since 1994.

What is the primary stumbling block to economic transformation?

BLF agrees with Professor Chris Malikane that the single most important stumbling block to economic transformation is the hold on the economy by WMC. WMC is not a fictitious creation by spin doctors. It’s real. The South African economy is owned and controlled by a few white families. On top of that list are the Oppenheimers and the Ruperts.

White supremacy manifests as WMC in the economy. Therefore without ending WMC there is no possibility of liberation – not just economic liberation. The control of the economy by a few leads to the control of the whole state by the same few. The South African state is captured by WMC and it is doing everything to demonize and remove anyone who is pursuing Radical Economic Transformation or is seen as threatening the interests of the same WMC.

WMC is inherently corrupt and anti development

The power and influence derived from the control of the economy by WMC makes it inherently corrupt. WMC can do this with impunity because it literally owns the state and the media.

The Competition Commission has been revealing the corrupt nature of WMC. To this end the banks have been found to be corrupt. In December 2015 the banks disappeared R500 billion from the JSE as part of the strategy of economic terrorism to pressurize President Zuma to appoint Pravin Gordhan.

The Public Protector’s leaked report shows also that ABSA is a direct beneficiary of theft from the South African Reserve Bank (SARB). The CIEX report which was commissioned by former President Mbeki shows that over R26 billion was stolen by very specific entities, including banks and the Rupert family.

So “why is it that when you buy a car worth R300000 you finish paying for it within 5 years but a house worth R300 000 you pay for it over 20 years?”. These things are both financed by the banks and they are worth the same amount. These people are ripping the middle class off. Let us have a 20 years bond (bondage) must fall campaign. #20_years_bondage_must_fall

WMC also controls law making. As we speak there are media speculations that a number of Members of Parliament are captured by WMC so as to vote against President Zuma. So even the Legislature is under influence of the same WMC.

What about the Judiciary?

Last month Justine Lewis informed this very committee that even the courts are captured by WMC. Lewis presented shocking evidence that Johann Rupert’s influence goes up to the office of the highest court in the land. He told this committee that in,
“2016 The Hawks judge approved an investigation especially with regard to the following concerns;

i) The allegations of extortion against the wheel chair bound widow by her SA bank in charge of protecting her pension left in trust for her late husband

ii) The alleged use of bribery of court officials

iii) The permission for access to evidence from the office of the chief justice re allegations of trial fixing, and the alleged protection of the banks and businessman Johan Rupert by the same office for obstructing the course of justice by refusing this access”


The concentration of media in the same few hands makes the S.A. media to be highly biased in favour of WMC. The white owned media are the bulldogs of WMC Anyone who is seen as a threat to the interests of WMC is demonized. We see it now with the unwarranted attacks on the advisor to the Minister of Finance Prof Malikane.

The media even creates fake news to advance its course together with some political parties which represent WMC. An axample is the blatant lies peddled about what Prof Malikane said at the event of BLF last Saturday night. BLF has lodged a complaint with the press ombudsman. But the media is under pressure to vilify opponents of its owners and thereby undermine media freedom.

All these shouldn’t surprise us because we know, to paraphrase Karl Marx, that the dominant ideas in any society are the ideas of the ruling class. The ruling class, being those who own the means of production. In S.A. the ruling class is WMC.

Impact of WMC

WMC domination has ensured systematic exclusion of blacks from the economy. This monopoly has ensured high unemployment on the one hand and high cost of living on the other through price fixing and other manipulations of the economy.

Oakbay saga

There continues to be zero evidence to justify the closure of Oakbay’s bank accounts by the big four banks (Absa, Nedbank, Standard Bank and FNB). All we have are 72 ‘suspicious transaction reports’. It is important that everyone recognises that ‘suspicious’ does not mean illegal · What is suspicious is the timing of the account closures – one after the other within a matter of days, reportedly at the request of Pravin Gordhan, the former Finance Minister. This looks a lot like collusion and must be investigated. Thousands of jobs are on the line, possibly just because Oakbay threatened monopoly capital’s dominance of some sectors of the economy. Through the banks, monopoly capital has the power to destroy the life of any South African. If the banks close your bank account, not only will this prevent you from having a job, it will also prevent you from accessing health insurance.

WMC, the biggest beneficiary of Tenders

President Zuma at the 2017 State of the Nation Addressed showed that the government spends R500 billion on procurement in a single financial year and another R500 billion on infrastructure. All this money ends up in the pockets of WMC but black businesses are accused of corruption.

The example of the South African Airways (SAA) is instrutive here. This State Owned Entity (SOE) spends R24 billion annually on procurement. 98% of this R24 billion goes to white owned entities. This means blacks only get 2% of that figure. When the chairperson of the board Mrs Dudu Myeni tried to change this anomaly, she was turned into an evil incompetent manager by the white ownd media. The same goes for Brian Molefe and many other owners.

WMC refuses to let go its control of the economy. We will do well to remember how they shut down the bank accounts of Oakbay

What is to be done?

First deal with the structural corruption of WMC.

1. A Judicial Commission of Inquiry on apartheid corruption informed amongst others by the CIEX report.

2. A Judicial Commission of Inquiry on the banks (include in the terms of reference, the closure of the Oakbay accounts).

3. A Judicial Commission of Inquiry on SAA with specific regard to the role played by Coleman Andrews in creating the systematic problems of the national carrier.

4. Amend the Competition Act to bring the penalties in line with the crimes committed by the offending parties. The current penalty system encourages corruption. We call for 100% of the turnover for each year of transgression.

Radical Economic Transformation proposals

BLF calls for serious engagement the Malikane Proposals. We recommend that this committee invites Prof Malikane to share with you his ideas to help South Africa reach economic transformation.

The Malikane Proposals

If we hope to transform the financial sector and the economy then we must adopt the following proposals.

A new National Economic Plan, which outlines how the following key demands can immediately be realised:

1. Expropriation of white monopoly capitalist establishments, such as banks, insurance companies, mines and other monopoly industries, to industrialise the economy.

2. Establishment of a state bank, which will consolidate all the state-owned financial institutions to facilitate affordable credit to the progressive class forces.

3. Nationalisation of the South African Reserve Bank.

4. Expropriation of all land without compensation

These measures will ensure the provision of free quality social services such as:

a. Free, quality and decolonised education

b. Free and quality healthcare – National Health Insurance

c. Improved quality housing, community infrastructure, etc.

d. Affordable and safe public transport

e. Affordable and reliable basic services such as water, sanitation and electricity

BLF asks the committee to send the following message to the Minister of Finance:

BLF asks Minister Gigaba to consider, amongst the preliminary key deliverables, to do the following:

1. Fully licence black banks such as Ithala, VBS and PostBank within a year.

2. Licence 10 black banks in the next five years.

3. Immediately terminate all goverment accounts with ABSA.

4. Nationalise the SARB

5. Raise the percentage for black-owned businesses for procurement spent from government by 80% (R500 billion plus the R900 billion infrastructure expenditure), and ensure that PIC mandates to asset management goes to 80% black asset managers ( R1.8 trillion).

6. Establish a State Bank within 2 years.

7. Insist black youth and women are properly represented in the 80% black centered goverment procurement spent.

8. Raise the penalties for collusion to 100% of the revenue of the offending businesses for each year of transgression.

9. Halve uneployment in the next 5 years.

10. Prioritise SADC economic intergration.

11. Stop talking to the criminal rating agencies. Go yo China to get funding to refinance the national debt and free us from imperialism.

Lastly BLF invites members of the committee to the National Land Imbizo on the 27 May in Soweto.

3 May 2017
Andile Mngxitama
President, Black First Land First

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