The Department of Communications intends introducing the South African Postbank Bill into Parliament before end of 2009. Written comments on the proposed Bill must be received within two weeks of the date of publication of this notice (Le.
Post to: Private Bag X860 Pretoria 0001 or deliver to: First Floor, Block A3 iParioli Office Park 399 Duncan Street Hatfield or fax to: (012) 427 8059 fax 0866822810 or e-mail to: . postbankbill@doc.gov.
Ms Dimakatso Mojela can be reached at tel.
The Bill and consultation document can be obtained at the Department's website: www.doc.gov.za or at Government Printers.
To provide for the corporatisation of the Postbank, to provide for the renaming of the Postbank to South African Postbank and to provide for the regulation and supervision of the business of the South African Postbank and for matters connected therewith.
Repeal of laws 32.
"Banks Act" means the Banks Act, (Act No.
a child, stepchild, parent or stepparent c.
"Companies Act" means the Companies Act, (Act No.
Co-Operatives Act, (Act No.
"Deposit" means deposit as defined in section 1(1) of the Banks Act No.
Financial Markets Control Act, (Act No.
"Post Office Act" means the Post Office Act, (Act, No.
"Postal Company" means the South African Post Office Limited established in terms of the Post Office Act No.
Act, (Act No.
The Postbank division of the Post Office shall be incorporated as a wholly owned subsidiary company of the Post Office in terms of the Companys Act as the South African Postbank Limited or such other name as the Registrar of Companies approves, and all references in this Act to the Bank shall be a reference to the company so established.
Date of incorporation shall be determined by the Minister by notice in the Gazette.
Notwithstanding the provisions of the Companies Act, the Minister or such other person delegated by the Minister shall sign the memorandum and the articles of association of the Bank.
The Minister shall by notice in the Gazette, determine the date of transfer of the former Postbank to the corporatized Bank.
any other matter which the Minister deems expedient for the functioning of the Bank.
The Bank shall, as consideration for the transfer of assets, liabilities, rights or obligations in terms of subsection (1) (a), issue to the Post Office fully paidup shares in the Bank and such value shall be deemed to be reasonable consideration for such transfer.
Notwithstanding any provision to the contrary in any other law, the Bank shall on the transfer date become the owner of the assets, movable and immovable, transferred to it in terms of subsection (1) (a).
The accounts of the former Postbank shall be audited by the independent external auditor within three (3) months of the transfer date and the independent external auditor shall determine the value of all the assets and liabilities of the former Postbank. The value so determined shall become the opening balance on the balance sheet of the Bank.
Notwithstanding the provisions of section 5 of the State Land Disposal Act, (Act No. 48 of 1961), and section 18 of the Deeds Registries Act, (Act No. 47 of 1937), the registrar as defined in section 102 of the Deeds Registries Act shall, on submission to him or her of a certificate by the Minister that State land has been transferred in terms of subsection (1) (a), free of charge make such entries and endorsements as he or she may deem necessary in or on any appropriate register, title deed or other document in his or her office or laid before him or her, in order to register the transfer of such land in the name of the Bank.
confirm the existence of the servitude over the State land so transferred in favour of any other person.
Notwithstanding legal provisions to the contrary, no servitude or other right of any kind in respect of State land transferred to the Bank in terms of subsection (1) (a) shall be acquired by prescription.
Notwithstanding any provision to the contrary in any other law, the_Bank shall be exempt from any stamp duties, transfer duties or registering fees payable in terms of any law in relation to the transfer to the Bank of assets or rights in terms of subsection (1) (a).
Unless otherwise provided for in this Act or approved by the Board, the Bank shall not alienate or encumber, otherwise than in the normal course of its business, assets transferred to the Bank in terms of subsection (1) (a) and used to perform any relevant activity.
For the purposes of the Income Tax Act, (Act No. 58 of 1962), the assets mentioned in sUbsection (1) (a) shall be deemed to have been acquired in terms of that subsection by the Bank at a price equivalent to the value determined in terms of subsection (3).
The Bank shall be the subsidiary wholly owned by the Post Office, on behalf of the Government.
to do any such other act as it may be authorised to do under this Act.
(1). The Bank shall be controlled by the Board of directors.
determine and implement policies to administer this Act.
The first Board of the Bank shall be appointed by the Minister and thereafter as determined by the Articles of Association.
the Managing Director, the Chief Operations Officer and the Chief Financial Officer or their equivalent who are by virtue of their positions are members of the Board or ex-officio members of the Board.
In order to determine whether a particular person is fit and proper to hold the office of a director of the Bank, the Minister shall have regard to the following qualities, insofar as they are reasonably determinable.
possess suitable qualifications, expertise and experience in the field of banking or finance and economics, or any other relevant expertise or qualifications.
The members of the Board shall be appointed for such period, not exceeding five years or as the Minister may in the case of each member determine.
At the expiry of the period of any board member or any retiring, board member may be re-appointed as a member of the Board unless removed from his or her office or disqualified for any of the reason provided under section 9.
The Minister must designate one of the members of the board referred to in subsection (1) as the chairperson and another as deputy chairperson of the board and both to whom must be no-executive members of the board.
theft, fraud, forgery or uttering a forged document, perjury, an offence in terms of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No.
(g). has been sentenced, after the commencement of the Constitution of the Republic of South Africa, 1993 (Act No. 200 of 1993).
(h). has at any time been removed from an office of trust on an account of misconduct.
The affairs of the Postbank shall be administered by the executive committee consisting of the Managing Director, Chief Operations Officer, Chief Financial Officer and other members.
The business, products and services of the Bank will be as defined in section 1 (1) of the Banks Act.
Subject to the Public Finance Management Act and the approval by the Minister, the Bank shall be entitled to conclude joint ventures and other commercial agreements with third parties in order to promote and advance its business as set out in section 9, subject to the provision of the Banks Act.
the capital invested in the Bank at the commencement of this Act as determined by the external auditor.
such moneys as Parliament may from time to time by appropriation authorize the Minister to pay to the Bank as part of its funds.
The interest set out in subsection (2) shall be payable upon such dates as the Minister may from time to time direct, and shall be payable at such rates as may be agreed between the Board and the Minister.
The Board shall have power to raise funds upon such conditions as shall be determined by the Minister in consultation with the Minister of Finance.
repayments of such deposits and any interest due thereon shall not, subject to the provisions of this Act, be made without the written consent of both the t.
any other person not otherwise excluded from depositing funds in another bank.
Inactive and Dormant accounts with the bank shall be dealt with in accordance with the terms and conditions signed with the client.
until the bond or other security which is proposed to be given in respect of the advance has been registered as required by law or otherwise completed, or until such conditions as the Board may determine have been complied with.
If an advance has been approved, it must be taken up within three months, otherwise it will lapse.
The rate of interest payable to the Bank in respect of advances shall be prescribed by the Board from time to time, and the rate so prescribed shall be sufficient to ensure that the Bank does not contravene the prudency requirements as set out in chapter 6.
If any amount owing to the Bank is repaid on a date prior to the due date for payment of any instalment or interest, the Bank may claim interest in respect of such amount up to the date of such payment only.
Money may be remitted through the Postbank either within or outside the Republic at rates determined by the Postbank and the Postbank may authorise any employee to issue and pay money orders, postal orders and other documents authorised to be used for the purpose of so remitting money.
The Managing Director may, at the request of a depositor, make arrangements with any banking authority outside of the Republic, for the transfer to the Republic into the account of any depositor with the Bank, of monies standing to the credit of the any person in a bank account under the control of such authority, or from the Republic to any such account of monies standing to the credit of any person with the Bank.
No transfer shall be made under subsection (1) unless it is made in accordance with any exchange control regulations in force in the Republic, and with such conditions as may, from time to time, be laid down for the purposes of this section by the Board..
Where payment of any such money order, postal order, or other document is so refused, such money order, postal order or other document may, if it was issued in the Republic, be returned to the person to whom it was originally issued or otherwise disposed of as the court may determine, or, if it was issued outside the Republic, the amount thereof must be returned to the postal authority of the country in which it was issued.
Any unissued postal order must be regarded as money of the Postbank.
National Savings Certificates issued in terms of section 77(A) of the Post Office Act, No. 44 of 1958 shall, on maturity, be paid by the Postbank.
The bank shall comply with the prudential requirements as set out in the Banks Act and all of the regulations enacted in relation to such sections.
The supervision of the prudential requirements as set out in subsection (1) shall be the responsibility of the Registrar mutatis mutandis on the same basis as set out in Chapter 2 of the Banks Act, provided that any failure by the Bank to comply with the prudential requirements as set out in subsection (1) shall be reported by the Registrar and the Minister of Finance.
The Registrar and the Minister of Finance shall thereafter agree upon the way in which such non-compliance with the Bank shall be corrected.
The provisions of the Public Finance Management Act and the Banks Act shall be applicable to the Bank and its business.
The Minister or any officer in the public service authorised by him or her in writing, shall have full access to all the accounts, documents and papers of the Bank, and the Board shall at all times furnish to him or her all such information as he or she may reasonably require.
The reserve fund of the Bank shall be credited with any net to profit earned by the Bank from time to time and shall be applied by the Board in making good any loss or deficie, ncy which may occur in any transaction of the Bank.
Any balance remaining in the reserve fund after providing for any loss or deficiency aforesaid, may be invested in Government or municipal stock or securities or in any other stock or securities approved by the Board, or be devoted to any of the purposes to which any other funds of the Bank may in terms of this Act be devoted.
At the incorporation of the Bank as set out in section 3, the Post Office as the shareholder shall appoint an independent external auditor, as the auditor of the Bank on mutatis mutandis the same basis as set out in the Companies Act.
The Minister may make regulations on any matter consistent with the provisions of this Act and upon the recommendation of the Board.
Limitation of Liability in terms of this Act shall be dealt with in accordance with the provision as provided for in the Banks Act.
Offences and penalties in terms of this Act shall be dealt with in accordance with the provision as provided for in the Banks Act.
The laws mentioned in the First Schedule to this Act are hereby repealed to the extent set out in the third column of that Schedule.
This Act is called the South African Postbank Act and come into operation on a date to be fixed by the President by proclamation in the Gazette.
Act NO. 44 of 1958 Post Office Act, of 1958 I Section 3 (4) (b) (ii) (cc) and section 3 (4) (d) to allow the Postal Company to issue shares.
This consultation document is aimed at eliciting comments on the proposed South African Postbank Act. The comments received will enable the Department to refine and enhance its proposals before embarking on the process of introducing the draft legislation to parliamentary process. The proposals and the views in this document should therefore not be regarded as the Department's final view.
The consultation document is published with the Draft South African Postbank Bill that indicates how the Department's proposal will appear in a legislative format. This is to give persons and bodies wishing to comment and to make suggestion sufficient information to enable them to make informed comments and suggestions.
The Director General: Department of Communications Private Bag X 860 Pretoria 0001 Or Fax: 0124278105 Or Email: dimakatsom@doc.gov.zaorthembani@doc.gov.
An electronic version of this consultation document and the draft bill can be accessed on the internet at: www.doc.gov.za. For further information, the Department can be contacted at: 012 427 8106/8529/7017 1.
Postbank is a financial services division of the Post Offices around the world. Their main aim is to give mostly isolated communities access to vital financial and related services and thereby contribute greatly to the economic and social development.
The South African Post Office (SAPO) has been offering financial services ever since its incorporation when firstly money order service and postal orders were introduced. Postbank was established by Post Office Act, 1958 (Act No. 44 of 1958) as division of the Post Office and under the control and management of the Post Office. The Postbank was used as a deposit taking and saving institution since its incorporation. As a financial services division, the Postbank has become extremely irnportant in the realization of integrated services delivery to the people of South Africa. Many financial transactions are done through the post office systems to ensure that ordinary people participate within the economic activities, irrespective of their physical location or financial background. Many organizations including Government utilize the services of the Post Office and in particular the Postbank to ensure access to their services.
Corporitisation of the Postbank has been envisaged in terms of the White Paper on Postal Policy (1.996) as a subsidiary of the South African Post Office in the short term and a stand-alone company in the long term extending to lending facilities. In 2005, Memorandum of Understanding (MOU) was entered into between Ministers of Communications and Finance on the governing prinCiples and the process to be followed in the restructuring and corporatisation of Postbank. The MOU included the milestones to be undertaken until the process is finalized in line with the 1996 Postal Policy.
The Postbank is currently regulated in terms of the Postal Services Act, 1998 (Act No. 124 of 1998) as amended and is exempted from the application of the Banks Act. The Postal Services Act does, however, not provide for any obligation on the Postbank, except for that section which allows for the provision of such financial services. The Postbank is also managed and controlled by the Post Office board and management.
As a financial services provider, the Postbank, like any other financial institution is exposed to the possibility of financial crimes such as money laundering and related activities. There are certain requirements in terms of the financial services laws that need to be complied with when providing financial services. The Postbank because of its nature and its current regulatory framework is exempted to comply with those requirements, which can expose it to the possibility of financial crimes being committed.
Corporatisation of the Postbank is also maimed at ensuring compliance with regulations and laws to ensure proper management of the bank as a financial service institution and continue to be the key player in ensuring access to the financial services, particularly to the underserviced population.
The process of corporatising the Postbank can only be finalised once a regulatory framework has been put in place. Task team consisting of SAPO, Department of Communications and National Treasury was established to work on the corporatization process.
The Department of Communications is tasked with developing and or identifying enabling legislation to govern the corporatization of the Postbank. The Draft South African Postbank Bill has been developed to facilitate the process. The National Treasury as one of the key stakeholders is already working on other prudential requirements for the corporatisation process.
The objective of the Bill is to implement the Postal policy and the MOU of making the Postbank a subsidiary of SAPO and its vision as the corporatised Postbank.
The objectives of the Bill is to implement the vision of the White Paper on Postal Policy, 1996 and the MOU entered into by the Ministers of Communications and Finance in respect of the corporatisation the Postbank into a subsidiary legal entity owned by SAPO on behalf of Government.
extend lending facilities subject to approval of the South African Reserve Bank, in consultation with the shareholder.
The purpose of the proposed South African Postbank Act is to provide for the corporatisation of the Postbank, for the re-naming of the Postbank to South African Postbank and to provide for the regulation and supervision of the business of the Postbank in line with the Bank's Act.
Interpretation and Objects of the Bill This chapter provides for the interpretations of words as they will be used in the legislation and also the objects of the proposed legislation. The main aim of the Bill is the creation of a Bank of first choice for the underserviced communities and the establishment of a financial institution to mobilise masses savings and investment and encourage economic participation by all citizens, particularly in the rural area and for government's financial services programme to the communities.
Incorporation and transfer of the business of the Postbank This chapter provides for the incorporation of the South African Postbank as public entity wholly owned by the SAPO on behalf of Government in terms of the Companies Act. It also makes provisions as to how the business, employees, rights, obligations, and customers of the former Postbank shall be transferred to the corporatised Postbank from the Post Office. It also outlines the relationship that will exist between the corporatized Postbank and the Post Office.
Ownership and functions of the Bank The Bill provides for the Postbank to be wholly owned and a subsidiary of SAPO on behalf of Government. The powers and functions of the Postbank is to realise its objectives of being a bank of first choice for the underserviced communities.
Control and Management of the Bank This chapter provides for the establishment of a Board that will control and manage the Bank.
non-executive members and a Managing Director (MD), Chief Operational Officer (COO) and Chief Financial Officer (CFO) as executive members. It also provides for how the Board members shall be appointed and their responsibilities, 1:1s well as the disqualification of Board member for any contravention to the provision of this legislation.
Business, Products, Services and Funds of the bank The chapter provides for the business and products services that the bank may provide. It also provides for the funds of the Bank and empowers the bank as a legal entity to conclude agreements with the third parties and to raise funds.
Money Order Transfer This chapter is adopted from the provision of chapters V and VI of the Postal Services Act 124 of 1998. It provides for the regulation of money remittance, both inside and outside the country through the Postbank and the payment for National Savings Certificate by the Bank.
Prudential requirements The chapter provides for the Postbank to comply with the prudential requirements as set out in the Bank's Act and for the supervision of the Bank by the Registrar. This compels the Postbank to comply with the financial services sector regulations and to ensure that it does not fall victim of financial criminal activities. This chapter was done in agreement with the National Treasury and the Reserve Bank.
Accounts of the Bank The proposed legislation also places obligations on the Bank to publish and keep accounts and documents of the Bank for inspection of the Minister or any officer authorized. It also provides for the appointment of an independent external auditor by the SAPO as the auditor of the Bank.
General and Miscellaneous The Bill provides for the power of Minister to make regulations consistent with the proviSion of the Act on recommendation of the Board. It also provides for the limitation of liability on Government, SAPO, the Board or employee for any loss, unless act of negligence can be proved. The proposed legislation also creates what constitutes an offence and the penalties that can be imposed for any contravention of or any failure to comply with the provisions of the proposed legislation.
The Department believes that a comprehensive administrative and regulatory framework to ensure the corporatization of the Postbank as an independent public entity will establish an effective and co-operative process to remedy the failures and to comply with the financial regulatory systems in the country. The aim is also to ensure access to the much needed financial services by communities, especially for the rural communities and low income earners.
The Department would therefore appreciate receiving all suggestions for improvements to the current proposal in order to develop a sound solution to the corporatization of the Postbank.
Commentators are therefore, requested to indicate whether they support the principle of establishing a South African Postbank as a separate legal entity owned by SAPO on behalf of Government.
Also provide inputs on all the provision for the transfer of the business of the Bank to the corporatized bank.
Inputs and comments are also requested on the structure of the bank and business to be undertaken by the Bank.