'No tangible or sustainable transformation in banking sector'

During the three days of public hearing in Parliament, MPs were told that levels in the financial transformation sector were still low but there’s no official data to spell out how bad the situation is.

Chartered accountant, Khaya Sithole spoke to Gugs and Sizwe on 702's NightTalk.

He says the main banks in the country went all out to protect their territory despite all the commitment to transformation that was made in the Financial Charter 14 years ago.

He says Parliament is only realising now that nothing is being done about issues they thought has been addressed 14 years ago.

The Financial Charter was gazetted way back in 2004 but it really has been rendered a very useless instrument of implementation because we still don't have any form of tangible transformation within the sector.

Khaya Sithole, Chartered accountant

Sithole says, in trying to fast track the process, the industry tried to find a convenient means by targeting one major BEE deal and saying they had done their bit.

The problem with that, he says, is when that particular beneficiary leaves the structure, the institution struggles to explain what transformation measure they have put in place because they have empowered one individual with political connections.

The reality is we still haven't reached a consensus on what amounts to meaningful transformation, especially within the banking space.

Khaya Sithole, Chartered accountant

What the banks had done, they entered into deal that they thought were adequate, but unfortunately, the nature of those deals was short-term in nature. The problem with those deals is that you really not addressing the question of sustainability.

Khaya Sithole, Chartered accountant

To hear more of this conversation, listen below:


Recommended

by NEWSROOM AI
Read More
Lack of data makes measure of financial sector transformation tough says DTI

Lack of data makes measure of financial sector transformation tough says DTI

The DTI and Finance Portfolio Committee's hearing of transformation in the financial sector is underway.

What should transformation in the banking sector look like?

What should transformation in the banking sector look like?

Managing Director of the Banking Association of South Africa, Cassim Coovadia shares his vision.

2 heists take place every 3 days in South Africa

2 heists take place every 3 days in South Africa

The Money Show’s Bruce Whitfield interviews South African Banking Risk Information Centre’s Kevin Twiname.

Mcebisi Jonas explains revenue shortfall, transformation agenda

Mcebisi Jonas explains revenue shortfall, transformation agenda

Economic growth and transformation were two key issues Minister Pravin Gordhan promised to address during his budget speech.

Stephen Grootes on the path to ANC policy conference: 'It's all about pressure'

Stephen Grootes on the path to ANC policy conference: 'It's all about pressure'

The ANC NEC is currently meeting to prepare for the policy conference in June and Stephen Grootes breaks down what's to come.

Icasa orders SABC to set aside broadcast ban which SABC denies ever implementing

Icasa orders SABC to set aside broadcast ban which SABC denies ever implementing

Penalties for defying Icasa include being fined up to R1 million or a year in jail for the accounting officer, advises councillor.

Popular articles
#Changemakers2018: I don't like talking about myself, but I need to - Ray Zondo

#Changemakers2018: I don't like talking about myself, but I need to - Ray Zondo

At the #Changemakers2018 conference, Deputy Chief Justice of SA Raymond Zondo spoke about the struggles he faced growing up.

News24 exposes how big SA corporates are funding fake news

News24 exposes how big SA corporates are funding fake news

A News24 investigation has exposed how some of South Africa's biggest companies have been advertising on fake news websites.

[Watch] SA choir stuns with isiZulu cover of Ed Sheeran’s ‘Shape of You’

[Watch] SA choir stuns with isiZulu cover of Ed Sheeran’s ‘Shape of You’

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone Viral'.

How Tracey Chambers is helping unemployed moms become entrepreneurs

How Tracey Chambers is helping unemployed moms become entrepreneurs

The Clothing Bank gives women access to discounted merchandise and 500 hours of training in money management and business skills.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.