Johannesburg - South Africa has finalised its preparations for participation in the New Development Bank, commonly known as the Brics Bank, by ratifying two key pieces of legislation and nominating former Reserve Bank governor Tito Mboweni and former Absa executive Leslie Maasdorp as part of the bank’s management.
Finance Minister Nhlanhla Nene said on Friday that Cabinet had endorsed Mboweni’s nomination as a non-executive director of the bank and that of Maasdorp as its vice-president.
Maasdorp has confirmed that he will be based in Shanghai, China, for an initial six-year period, after which the position will be held in five year non-renewable terms. He will also spend time in Johannesburg, the bank’s Africa regional office.
Two weeks ago, the National Assembly and then the National Council of Provinces in Parliament ratified the New Development Bank Bill and the Contingency Reserves Arrangement. This paves the way for South Africa to make its contribution of $5-billion to the bank’s intended $100-billion initial funding pool. The bank is being formed by Brazil, Russia, India, China and South Africa, the bloc of countries popularly referred to as Brics.
“The agreements contain self-executing provisions with the result that a bill does not have to be passed in order to make them law. The very acceptance through ratification of the agreements ensures that they become law in South Africa. The board will meet as scheduled without any legal hindrances,” Phumza Macanda, acting spokesperson for National Treasury, told ANA.
The bank will mainly focus on funding infrastructure in developing countries. Its member countries have equal voting powers of one vote each with no single country holding veto power.
The bank’s management will be inaugurated at the upcoming Brics Summit in Russia.
ANA