Economic Freedom Fighters (EFF) leader Julius Malema has attacked banking institutions for what he terms irrationally repossessing cars and houses of individuals who fail to repay their loans.
He was speaking at a Rand Merchant Bank Macro Forum event in Sandton, Johannesburg.
Malema claims that a different repossessing mechanism must be developed. He says the emerging middle class cannot meaningfully participate in the economy because their unending debt has made them slaves of banks and insurance companies.
Malema believes South Africa needs economic growth before it can talk about wealth distribution. He has also called on banks to give black people preference especially those who want to buy property.
“We are making a contribution to the platform of RNB which is one of the biggest and untransformed financial institutions in South Africa, which owns and controls FNB and West Bank. While FNB and West Bank have played an important role in ensuring that many South Africans have houses The same RNB have worsened the poverty of black people by disposing black people their houses and cars.”
The EFF leader states South Africa is dealing with a banking cartel that is determined to make sure that black people do not own property.
He went on to say EFF has made enormous submissions to Parliament on why banks should not be allowed to disposes off people’s assets; especially those who have actually paid for the value of their properties.
The EFF commander-in-chief has urged banks to look at housing finance differently and give housing loans for a period of less than ten years
“But we have a problem that a bank spends R200 000 and then sells that house to another individual for R400 000 and even if a person has paid more than R250 000, the bank has collected their cost. Once you fail to pay the remaining R150 000, the bank will never have mercy on you, even if they are not running at a loss. We see that as a contribution towards homelessness in South Africa. Black people were not allowed to own property in the apartheid government and post-apartheid it looks like black people are not allowed by the banks to own property,” said Malema.
The party says it supports the call for a government owned bank and the call for a state owned mining company.
“Because these four or five banks are monopolizing that industry, we want a state owned bank that is competitive that will offer us services at a reasonable rate. Not this thing of going to ABSA, FNB, the difference is two cents, one cent or no difference at all, There must be a huge difference forcing you to come down,” he continued.
He also lashed out against the abnormal salaries of CEO’s. The party says it supports calls for the nationalization of the Reserve Bank but wants the independence of the bank to remain intact.
In addition, Malema is obstinate that government should protect industrialization and the growth of new industries to create jobs. He has called on the private sector to support struggling students in tertiary institutions.