By Edmond Phiri
Tim Cohen's recent article in the Daily Maverick, critiquing Financial Sector Conduct Authority (FSCA) commissioner Unathi Kamlana's stance on arbitrary bank account closures, has exposed the deep-rooted racism that continues to plague South Africa's mainstream media.
Despite the decades that have passed since the end of Apartheid, the white-owned media remains a breeding ground for biased and discriminatory narratives, perpetuating the very injustices that the nation has fought so hard to overcome.
Kamlana's speech addressed critical issues of economic inclusion and the social impact of arbitrary bank account closures - matters that have long been blue-ticked by the mainstream. It also dealt with the overused amorphous argument about "reputational risk" used to justify arbitrary bank account closures. His arguments, rightfully so, encapsulated the fact that major industries or sectors cannot be divorced from their socio-political responsibilities, especially in a nation still grappling with the legacy of racial discrimination. Kamlana called upon banks to embrace procedural fairness, transparency, and the right to appeal when dealing with customers facing bank account closures.
However, Cohen took particular umbrage with Kamlana's view that "banks are opposed to black advancement," dismissing it as a "nonsensical argument". This thread of disregard for the ongoing struggle of black South Africans runs through Cohen's article. It exposes his racist attitude and reveals a deeply troubling mindset that seeks to minimise the importance of addressing historical injustices against blacks. He completely discounts that key economic sectors are morally obligated to redress past wrongs. He further stripped Kamlana's arguments and narrowed them to a simplistic "good versus bad" dichotomy, not addressing the critical issues raised.
Cohen goes so far as to accuse Kamlana of "thinking exclusively from the point of view of the dodgy bank client, clothed in the language of human rights." This misrepresentation not only strips away the nuance and gravity of Kamlana's perspective but also reduces anyone whose account has been closed to a "wrong-doer", even without due process. Cohen's classist and racist views are further exposed when he questions whether financial inclusion - a key tenet of the 2030 Sustainable Development Goals - is a right worth protecting, effectively dismissing the very notion of economic justice.
To justify his position, Cohen angled his arguments around criminals, the mafia, drug dealers, and crooks. He then employed the sophisticated propaganda tactic of "somatic marking" by strategically invoking the notorious Gupta family and pairing it with respected businessman and philanthropist Dr Iqbal Survé. It's a calculated tactic designed to automatically associate Survé with wrongdoing despite the lack of evidence of such.
Survé and his companies emerged victorious in several legal battles against the banks. As we speak, the courts asked the banks and the Financial Intelligence Centre (FIC) to furnish detailed reasons why they closed Survé and his companies' bank accounts. Interestingly, an interlocutory case brought by Sekunjalo before Judge Hawthorne heard from Nedbank's counsel that there were no records of any minutes or meetings, nor had any documents been destroyed, pertaining to any misdeeds by Sekunjalo-related entities, that would spark reporting to the FIC. Cohen ignores this startling revelation, falsely arguing that there was a due process followed. A due process without documents?
Cohen's article is rife with sensationalism and unsubstantiated claims. It repeats refuted allegations and ignores crucial facts. He falsely claims that Survé's case is the only publicly known instance of bank account closure, conveniently overlooking decade-old landmark cases such as John Bredenkamp vs. Standard Bank, which set important legal precedents. Unlike Survé, Bredenkamp faced allegations of involvement in illegal activities, leading to his account closures.
Despite the lack of evidence implicating Survé or his companies in any illegal activities, sanctions lists, or criminal cases, they have faced bank account closures. Four years on, the only reason we know now is that the banks presented a "reputational risk" argument to the courts and relied solely on negative news articles by Surve's competitor media and the PIC Commission hearing, which focused on the PIC internal processes, not Survé.
The arbitrary closure of bank accounts is a serious issue that extends beyond South Africa's borders, as seen in the case of Neil Farage in the United Kingdom. NatWest Bank's closure of Farage's accounts prompted an investigation by the Financial Conduct Authority (FCA) and led to the introduction of reforms by the UK Treasury to improve transparency and protect customers' right to appeal account closures. The Farage case exposed that banks are run by humans, who are fallible.
Similarly, in South Africa, Chief Justice Zondo, in his State Capture Inquiry report, called for legislative changes allowing clients to plead their case before their accounts closed. A right Cohen wants disregarded by the banks. The National Treasury has confirmed its intention to update Parliament on plans to align banking regulations with these recommendations, recognising the need for greater transparency and fairness in the banking sector. Kamlana's arguments are consistent with the views raised by Chief Justice Zondo.
Cohen's fixation on using Survé as the central thesis for his argument against Kamlana exposes the systemic racism that continues to plague South Africa's media landscape. He conveniently ignores the transgressions of white-owned companies like EOH Holdings, KPMG, ABB, and Steinhoff, revealing a double standard that holds a black businessman to a different set of rules than their white counterparts.
The same Nedbank and the other banks he puts in morally superior positions 'to police wrong-doers' were the negative subject of the State Capture Commission report, with some accused of being in bed with the Guptas and being enablers-in-chief for state capture. But Cohen conveniently missed that 'log in their eye'.
The white mainstream media's sadistic streak of seeing blacks suffer and face punishment, even in the absence of wrongdoing, is a disturbing remnant of the apartheid era that has no place in a progressive, democratic society. Cohen's article serves as a harsh reminder that with "Apartheid gone", racism continues to find new avenues of expression. After all, he is just an old white male out of touch with the post-apartheid South Africa's sensitivities and reality.
* Edmond Phiri is an independent commentator and analyst.
** The views expressed do not necessarily reflect the views of Independent Media or IOL.