September 21, 2004

By Sherilee Bridge

Pretoria - The fracas over outstanding financial sector charter targets has been resolved for now, freeing the banks to roll out their national bank account to more than 13 million South Africans who have been labelled "unbanked".

"We are now sailing in uncharted waters," finance minister Trevor Manuel said yesterday.

Addressing journalists immediately following a meeting of between 20 and 30 banking, financial services industry, community and labour representatives at the national treasury, Manuel said the financial sector charter council had been agreed on.

The council's finalisation follows a bitter battle between the industry and community and labour representatives over equal representation, which was one of the "stumbling blocks" in the implementation of the charter.

The sector's charter gives life to the council, whose mandate is to facilitate its implementation and monitor the progress of transformation in the industry.

Manuel said the council would comprise 21 seats: six appointed by the industry, three by the Association of Black Securities and Investment Professionals; and four members each from trade unions, the community constituency and the government.

"This is not an agreement that suits everybody," said Manuel. "But because of the urgency of the issue, we wanted to start moving quite speedily."

The council would hold its first meeting three weeks from now and its structure would be reviewed within two years, he said.

The industry's plan to launch a national bank account is on the agenda for the first meeting, as is the finalisation of outstanding funding targets.

While the government was previously not represented on the council, Manuel dismissed questions over the state's increased involvement.

He said the government had decided it would be represented by two members of the national treasury, one from the department of trade and industry, and one from the presidency.

Originally afforded just two seats on the council, labour and community representatives argued to have an equal number of seats to business.

The SA Communist Party (SACP) went as far as calling for the charter's implementation to be frozen until all social partners in Nedlac had been consulted.

"Infuriated" by the Banking Council's decision to proceed with the launch of the Mzansi bank account next month, the SACP said it was ready to take the fight to the streets if necessary.

Kennedy Bungane, the president of the Association of Black Securities and Investment Professionals, said: "We accept that everyone has taken some pain in terms of how the council is constituted."

Dubbing the council members "guardians of the charter", Bungane said it had been tough to find a workable solution. But by formalising the council, he said, the charter would be given life.