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Comment Sought on South African Postbank Limited Bill

March 16, 2021

Department of Communications and Digital Technologies

Comment is sought on the Draft South African Postbank Limited Amendment Bill.

The communications and digital technologies department published the call for comment in Government Gazette 44266.

The draft bill provides for the amendment of the shareholding arrangements for the Postbank through the setting up of a new holding company to facilitate its establishment and registration as a Bank Controlling Company (BCC) in terms of the Banks Act.

The draft bill aims to amend the South African Postbank Limited Act, 2010, so as to:

• provide for the incorporation of the Postbank Division of the South African Post Office;
• provide for the transfer of the enterprise of that Division to the postbank company;
• provide for the governance and functions of the postbank company;
• provide for the establishment and shareholding arrangements for the South African Postbank SOC Limited through the creation of a bank controlling company in terms of the Banks Act, 1990; and
• provide for matters connected therewith.

The draft bill proposes that the communications and digital technologies minister must apply to register the BCC in accordance with section 43 of the Banks Act.

The BCC will focus on compliance, risk management and the governance functions.

It shall exercise oversight over the bank, ensuring that the bank operating company exercises sound risk management and governance practices, in line with the South African Reserve Bank requirements as provided for in the Banks Act and its regulations.

The draft bill stipulates that the Board of the BCC shall be the same as the one serving on the Company.

The Board shall also accept responsibility to ensure that risks are adequately identified, measured, managed and monitored and that good governance is maintained.

The Board will discharge its duty through policies and frameworks supported by board committees.

Comment is invited within 30 days of the date of publication.