After march on Reserve Bank, BLF declares war

Leader of Black First Land First (BLF) Andile Mngxitama, who is openly aligned with President Jacob Zuma and his various supporters, took to social media on Saturday to declare that the banks had created an artificial crisis that cost the economy R500 billion in 2015/16.

He was referring to the controversy around the axing of then Nhlanhla Nene as finance minister and the appointment of little-known backbencher Des van Rooyen to replace him.

The markets reacted with panic, seeing the move as an attempt at “state capture” by the president, since Nene was opposed to SAA chairperson Dudu Myeni’s airbus deal and Van Rooyen was linked to the Gupta family.

Now, however, Mngxitama has used the announcement that 17 major local and international banks, including Standard Bank, Absa and Investec, were allegedly colluding to make money off forex trades to slam the banking sector and “white monopoly capital”.

He also took to Facebook to write: “For the record; I believe Brian Molefe would make a great minister of Finance. I hope Msholozi appoints him. This is war.”

Mngxitama also believes that Zuma’s appointment of Van Rooyen was sensible (Zuma himself has defended it on a number of occasions), but white capital created the crisis that saw Pravin Gordhan restored to his post as finance minister.

https://twitter.com/Mngxitama/status/832864031698468864

Before the Competition Commission’s announcement that it had referred the banks to the Competition Tribunal for prosecution, Mngxitama was already waging a campaign against Absa and the Reserve Bank over an allegedly illegal “lifeboat” given to Bankorp in the 1980s.

The BLF believes Bankorp would have had to repay money it received from the South African state in the dying days of apartheid. Since Bankorp was acquired by Absa, Mngxitama says the liability has passed on to that bank. Public Protector Busisiwe Mkhwebane also recommended in a draft report that Absa should repay R2.25 billion as the unpaid interest from the Bankorp bailout.

Absa, however, maintains it should not be liable for that interest as it believes it paid fair value for Bankorp. It has also said it will cooperate fully with any case against it regarding alleged collusion.

The Reserve Bank has been accused of allowing the banks to get away with forex manipulation for a decade and has strengthened the hand of those who’d like to see it nationalised. This includes BLF and the ANC Youth League, which made a statement calling for this and the “redeployment” of Gordhan on Friday.

The BLF primarily marched on Friday against the Reserve Bank, though, in relation to the bailout saga, as the march was planned before the commission’s collusion announcement.

They want Reserve Bank governor Lesetja Kganyago to resign as an act of “solidarity with black people”.

https://twitter.com/Black1stLand1st/status/832828145204133888

https://twitter.com/Black1stLand1st/status/832826963656065024

Fellow expelled former EFF member Lufuno Gogoro took to Facebook to declare that a “black agenda” is making waves.