ATM President Vuyo Zungula. Picture: Oupa Mokoena/African News Agency (ANA)
Dear Finance Minister Enoch Godongwana
I am writing to bring to your immediate attention a matter of utmost concern, that demands urgent intervention – the recent decision by Standard Bank to close the bank accounts of Independent Media.
First and foremost, it is with deep disappointment that I must convey the news of Standard Bank's decision to terminate the bank accounts belonging to Independent Media, citing concerns about reputational risk.
While we do acknowledge the importance of safeguarding the integrity of financial institutions, it is disheartening to see this decision when compared to the treatment of other entities such as Steinhoff and Glencore.
Steinhoff, despite being implicated in a massive financial scandal that defrauded people of billions of rand, did not face the same repercussions. Similarly, Glencore, a company that has been embroiled in numerous controversies, has not lost its banking privileges. This disparate treatment raises questions about fairness and consistency in the financial sector, leaving many perplexed about the criteria employed by banks to make such determinations.
The consequences of this decision by Standard Bank extend far beyond the boardroom. Independent Media will inevitably be forced to lay off workers due to the loss of its bank accounts. This will contribute to the already grave issue of unemployment in our country and the economic hardships faced by our citizens.
Moreover, I am deeply concerned about the broader implications and repercussions of this decision on media freedom in South Africa. A free and independent media is the cornerstone of a functioning democracy, and any threats to this freedom must be taken with the utmost seriousness.
What does this decision mean for media organisations across the nation? Will they feel comfortable reporting freely and fairly if they live in constant fear of their bank accounts being arbitrarily closed down?
It is my sincere belief that this decision by Standard Bank represents an abuse of power, one that threatens the fundamental principles upon which our democracy is built. Therefore, I would like to remind you that I have previously called for a constitutional amendment to declare access to a bank account as a constitutional right. This would ensure that financial institutions act responsibly and consistently, upholding the principles of fairness and justice in their dealings with all entities.
In conclusion, I implore you, Honourable Minister, to urgently consider the gravity of this situation and take immediate action to safeguard not only the livelihoods of our citizens, but also the very essence of our democracy – a free and independent media. I kindly request your urgent intervention to address this matter and ensure that justice prevails.
Vuyo Zungula (MP) is the ATM president.
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