'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:

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