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Parliament Seeks Comment on South African Postbank Limited Bill

July 15, 2022

Parliament

Parliament seeks comment on the South African Postbank Limited Amendment Bill.

The bill was tabled in parliament in May 2022.

It was published for comment in March 2021.

Cabinet approved the bill in March 2022 for tabling in parliament.

In a statement, cabinet pointed out that, once adopted into law, the Postbank will be able to operate as a separate entity with its regulatory framework outside of the South African Post Office.

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

  • amend and insert certain definitions;
  • amend the objects of the Act;
  • provide for the transfer in shareholding from the South African Post Office SOC Limited to Government and the creation of a bank controlling company for ‘‘The Postbank SOC Limited’’ in terms of the Banks Act, 1990;
  • provide for the appointment of the chief executive officer and the chief financial officer; and
  • provide for matters connected therewith.

The 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 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 South African Reserve Bank requirements as provided for in the Banks Act and its regulations.

The 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.

The portfolio committee on communications invites comment on the bill until 25 July 2022.

Comment can be emailed to Hajiera Salie at sapostbankbill@parliament.gov.za.