Right to Bank: How safe is your account in the hands of political banks?

The silence in the face of Standard Bank’s injustice, however, doesn’t grant anyone immunity. Picture: David Ritchie/African News Agency (ANA)

The silence in the face of Standard Bank’s injustice, however, doesn’t grant anyone immunity. Picture: David Ritchie/African News Agency (ANA)

Published Aug 19, 2023

Share

WHETHER you’re a judge, a politician, a corporation, or an individual, your bank account is never truly safe or immune from arbitrary closure. If it’s not closed now, the haunting question remains: when will the establishment deem you an enemy?

Martin Niemöller reflected in a 1946 speech, capturing his complicity during the Nazi regime: “First, they came for the socialists, and I did not speak out — because I was not a socialist. Then they came for the trade unionists, and I did not speak out — because I was not a trade unionist. Then they came for the Jews, and I did not speak out — because I was not a Jew. Then they came for me — and there was no one left to speak for me.”

But why resurrect these words now? What is their relevance to the present closure of bank accounts?

The current high-profile victims of bank account closures include the Sekunjalo Group, Independent Media, Dr Iqbal Survé, and EFF commander-in-chief Julius Malema.

These entities publicly spoke about the arbitrary closure of their bank accounts, sparking concern for many. But many do not speak out. The latest shock wave is Standard Bank’s imminent closure of Independent Media’s accounts, a decision that threatens not only press freedom but also exposes the alarming silence among leaders and media.

The silence in the face of Standard Bank’s injustice, however, doesn’t grant anyone immunity. Leaders like Survé and Malema are targeted for nothing except not aligning with the establishment. Banks, previously considered impartial, are emerging as politicised entities.

This political alignment became glaringly apparent in 2017 when banks funded and supported factions within the ruling ANC. At the state capture commission (Zondo Commission), banks were shown to participate directly and indirectly in politics through the deal-making they engaged in.

The Zondo Commission’s findings shed light on the extent of their political complicity. For example, Nedbank’s involvement in questionable deals with Regiments Capital, a financial services firm linked with the Guptas, has raised eyebrows. Similarly, Standard Bank has been implicated in several controversial transactions that bring their ethical stance into question.

The report from Open Secrets in February 2020 sums up the banks’ role succinctly: “Many of these private actors — from the banks to the accountants and management consultants — seek to portray themselves as innocent parties in the story of state capture... Mostly, these private sector firms have come to the Commission to provide evidence that they were the victims of political pressure in support of the state capture enterprise.”

Yet, it’s hard to overlook the irony of banks screaming “reputational risk” to justify arbitrary bank account closures. They once aligned with the Guptas, who were close to the then-ruling government when it was politically convenient.

As power shifted, so did their loyalty. In their chameleon-like behaviour, they now serve the current political regime, leading the charge to arbitrarily close bank accounts of those not aligned with the establishment.

The lesson from the murky dealings exposed at the Zondo Commission is that banks are highly politicised institutions, willing to go to bed with anyone close to power to cover their business interests. But each government administration has a finite cycle, typically two terms at most.

The individuals and companies whose accounts would be closed due to “political pressure” will change based on who is in power six years from now. As Vasily Klyuchevsky, a prominent Russian historian, observed: “History is not a [great] teacher but a warden: it does not teach anything but punishes severely for unlearned lessons.”

For those currently silent in the face of these arbitrary account closures, remember Niemöller’s words: “When they came for me, there was no one left to speak for me.” The targets and victims of the establishment will change, and you might find yourself victimised by the very system you ignored, or remained silent when it victimised Malema and Survé.

When a new administration takes over power, banks’ loyalties will shift again, leaving your bank account vulnerable and at their mercy. The experience of Sekunjalo, Malema, and Survé serves as a warning about the brutal hand of the regime enforcers, the banks.

Your bank accounts are not as safe as you may think. History’s unforgiving cycle will continue to turn, as the game of power rages on. Your own financial security and bank account would remain hanging in the balance.