Image: SASEDF
(The Post News)- The Drakenstein Municipality is poised to reconsider its financial relationship with ABSA Bank following a motion tabled by the Concerned Drakenstein Residents (CDR) at a council meeting on 29 October in Paarl. Led by Councillor Bazil Boesman Jacobs, CDR called for a comprehensive review of the municipality’s investments, insurance policies, and banking affiliations with ABSA, citing concerns over the bank’s alleged failure to support disadvantaged communities and local businesses adequately.
Referred to the Finance Committee for in-depth analysis and recommendation, the motion has set in motion a debate over ABSA’s role within the region. CDR councilors pointed to a range of issues, including a perceived lack of transformation within the bank, high denial rates for insurance claims, and minimal investment in poor areas. They also highlighted the challenges facing small and medium-sized businesses linked to ABSA, including low compensation rates for insurance work, as further reasons to reconsider the partnership.
The South African Social and Economic Development Forum (SASEDF) has since voiced strong support for the motion. Sammy Claassen, a SASEDF representative, hailed the decision as a necessary step in promoting fairer financial practices and urged other municipalities to follow suit. “Our communities deserve better returns, improved services, and real transformation within the banking sector,” Claassen stated. “ABSA profits from taxpayer money yet does little to improve local conditions. It’s time for the bank to reinvest where it matters.”
Claassen emphasized the need for ABSA to play a more active role in township economies, calling for investments in community infrastructure, youth programs, and small business initiatives. The proposal has resonated with residents, who rallied outside the Drakenstein Municipal Buildings during the Council meeting to show support for the motion and demand greater corporate responsibility.
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