The CEOs of SA's top banks and the National Treasury have discussed the consequences of possible US sanctions on the country's payment system.
Sowetan has learnt that finance minister Enoch Godongwana attended the Banking Association SA (Basa) board of directors meeting, where the issue of possible sanctions was on the agenda.
It is believed that Godongwana is concerned about the implications of possible US sanctions on SA, and had intended to raise the matter with Basa at Friday's meeting.
The fears are informed by the US-SA Bilateral Relations Review Act, a bill championed by Republicans congressman Ronny Jackson, which proposes a review of the US-SA relations and proposes sanctions on the leaders of the ANC and government officials.
It is not out of the ordinary for Basa to invite the minister to just come and meet the bank CEOs to talk about contemporary matters.
— Mfuneko Toyana, Enoch Godongwana's chief of staff
However, government insiders this week said there were concerns that the possible sanctions could possibly see SA kicked out of the interbanking system called SWIFT – a system that allows banks across the world to process payments. Russia, an ally of SA, was removed from SWIFT when the US imposed sanctions.
Jackson's bill was introduced to punish SA for forming alliances with Russia and China. Jackson also accuses SA of supporting Hamas – a militant group fighting Israel in Gaza. This accusation has been denied by the SA government.
Insiders said that while the government continued to negotiate with the US to mend relations and avoid sanctions, there are fears that restrictions on access to the US dollar clearing system would have consequences for the country's economy. It is believed that National Treasury believes that robust compliance and risk management within banks themselves would remain the first line of defence.
When asked for a comment, Godongwana's chief of staff, Mfuneko Toyana, said the meeting was private and that he could not share what was discussed.
“He [minister] was an invitee to Basa's AGMs [annual general meeting]. It is not out of the ordinary for Basa to invite the minister to just come and meet the bank CEOs to talk about contemporary matters. But unfortunately, the agenda is private and I cannot tell you what they spoke about,” he said.
This comes after the US legislators voted to advance Jackson's bill to the House of Representatives, where it could be subjected to a vote. It would also go through the Senate before it is enacted into law.
Sowetan's sister publication, Business Day, reported earlier this month that ANC secretary-general Fikile Mbalula said the government of national unity won't abandon redressing colonial imbalances under duress from the US.
According to the publication, Mbalula said the ANC would not be coerced into reversing its progressive transformation laws.
“If it means we are going to suffer through sanctions as leaders of the ANC, let it be.
“We will never back imperialists to subvert our democracy, to subvert our sovereignty. It happened during the period of Struggle; it will happen even now. We will never forsake our country which we fought for its liberation. Not this ANC. Not this leadership.”
The US has also imposed a 30% unilateral tariff on SA. Countries such as Lesotho and Zimbabwe were hit with a 15% tariff.
In response, the cabinet approved a revised trade offer to the US, which minister of trade, industry and competition, Parks Tau, said not only seeks to resolve the dispute but also carries implications for more than 130 other trading partners that risk redirecting goods into the SA market.
Basa spokesperson Paul Stober said: “I can't [share what was discussed]. It was a standard Basa board meeting. The minister was there as a guest speaker. It was not a public meeting.”
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