The Institute of Race Relations (IRR) is writing to the major banks and financial institutions this week to ask whether or not they will be making submissions to Parliament to warn against the risks the Expropriation Bill poses to their clients.
The deadline for public comment on the draft law is 28 February.
The IRR says in a statement it will be putting four questions to the major institutions.
They are:
- Have you made a submission to Parliament on the Expropriation Bill? If not, why not?
- Have you informed your clients of the significant risks posed by the Expropriation Bill to their financial and asset interests? If not, why not?
- Have you requested from Parliament and government appropriate socio-economic impact assessment reports on the Expropriation Bill? If not, why not?
- Do you oppose expropriation of assets without compensation?
The IRR argues that it is vital that South Africans stand up against a draconian Bill which will give the state an inordinate amount of power to seize the property of ordinary citizens without paying for it, and thus help prevent South Africa from repeating the mistakes of countries such as Venezuela and Zimbabwe.
‘As the definition of ‘property’ in the bill is not limited to land, South Africans deserve to know where those who manage their money stand on the issue of expropriation without compensation and whether these institutions will help protect their clients’ assets.’
Hermann Pretorius, head of strategic initiatives at the IRR, comments: ‘This Bill, if it becomes law, will condemn a generation of South Africans to lives of penury and want and will simply be repeating the mistakes of other countries, which can easily be avoided.
‘It is no exaggeration to say that the next few weeks will be some of the most important in the history of post-apartheid South Africa, and it is in the public interest for South Africans to know the position of banks and other financial institutions on the Expropriation Bill. Will banks stand with the people or the government?’