Why is the EFF so silent on the ‘Absa lifeboat’?

The Economic Freedom Fighters (EFF) is a party that has always been known for its claim to be fighting against what they call “white monopoly capital”.

It can be traced back right to when its two top leaders were at the helm of the ANC Youth League.

Getting rid of the power of white capital, they believe, can be achieved through a number of methods, most especially the nationalisation of mines, banks and other strategic sectors of the economy.

In 2015, the party embarked on what they called a “historic march” against financial institutions. The march drew about 50 000 protesters, who peacefully made their way to the Chamber of Mines and the SA Reserve Bank, with a stop at the JSE along the way.

In the same year, the party promised to take its fight to a level most did not expect. The party’s leader, Julius Malema, said that “we [are] now moving into practical action, we’re tired of talking. We’ve been talking for far too long now. Let each company produce its commitment of how it’s going to address the inequalities in South Africa, not theoretically; we have been listening to theory for far too long.”

Malema said the EFF would occupy Absa bank, which is now in the midst of long-running corruption allegations involving billions after a report about its apartheid-era “lifeboat” by the new public protector was leaked.

Malema said in 2015 that his party would occupy “all Absa branches” because the bank allegedly “stole our money on the eve of democracy”. He was referring to precisely the same matter that is now being investigated by Public Protector Busisiwe Mkhwebane, involving an alleged gift to several apartheid-era companies from the SA Reserve Bank. One of those companies was Bankorp, which was acquired by Absa in 1992. A retired British spy operative, Michael Oatley, not only determined that the lifeboats had been improper, he even offered to get the money back for the SA government through his Ciex company, an offer that South Africa is yet to take up.

Then public protector Thuli Madonsela was asked years ago to investigate why these funds have been allowed to stay in the wind.

Malema said in 2015: “[We will] occupy Absa, each and every branch of Absa, until we are given a practical programme of action on how the bank is going to intervene to resolve the inequalities in society.

“We targeted Absa because it is the amalgamated banks of the Broederbond … who operated during apartheid and stole our money on the eve of democracy.”

But almost two years later, the EFF is yet to occupy Absa. Even worse, they are dead silent even after Mkhwebane’s preliminary report into Absa’s lifeboat saga indicated that the bank could be forced to pay at least R2.25 billion to the fiscus, which is apparently just the interest on the bailout itself.

Not even one EFF top leader has commented on this matter as yet. Not that I could find, that is, and I’ve been looking. This is not only conspicuous for a party that was enthusiastic about the appointment of Mkhwebane, and always championed the work of her predecessor, but it opens the door for the party’s detractors to question the EFF on whether it has “sold out” since its nebulous partnership started with the DA in three major metros.

It could be that the EFF is also suspicious about the timing of Mkhwebane’s recommendations against Absa, considering that they have followed so fast on the heels of the Thuli Madonsela’s final public protector report on state capture and the influence of the Guptas on government.

Many have pointed out that Mkhwebane may in fact be using her report on alleged state capture that happened 30 years ago as a way to distract us from the state capture that is going on right now.

That may be so. And it would be understandable that the EFF would like to stay focused on the problematic relationship the Guptas have with President Jacob Zuma and his family, instead of getting too caught up in a very, very old scandal. In that sense, they are possibly feeling conflicted.

But all the same, you’d have expected them to say … something … anything. Because even if Mkhwebane is using this as a distraction, if Bankorp, Sanlam, the Rembrandt Group and the other companies that allegedly received money from the Reserve Bank have a case to answer, then they still have a case to answer – Guptas or no Guptas.

No doubt, when the EFF finally does decide to reveal exactly what its take is on Mkhwebane’s renewed emphasis on apartheid-era looting, it will be compelling.

Until then, though, we shall simply wait and ponder.

Senior Content Producer Austil Mathebula