The Economic Freedom Fighters (EFF), led by Julius Malema, has thrown its full support behind the R60 billion class action lawsuit against South Africa’s major banks, condemning their “predatory and exploitative practices.” The EFF asserts that these practices have left hundreds of primarily black South Africans homeless and destitute due to the repossession of their homes at prices far below their market value.
The class action, which involves over 200 applicants, targets leading banks — Absa, Standard Bank, FirstRand, and Nedbank — for auctioning off homes after bond payment defaults. In some cases, properties were sold for as little as 10% of their market value, with some homes fetching prices as low as R100. Most affected homeowners, who have been living in destitution for over a decade, are now seeking damages.
EFF national spokesperson Leigh‐Ann Mathys emphasised that the lawsuit exposes systemic neglect and exploitation, practices the EFF has long fought against. “These repossessions were not only unnecessary but also a grave violation of rights, as these homes were primary residences sold at far below their value, destroying savings and security,” Mathys stated.
The class action lawsuit, filed in 2020, follows years of legal battles that began in 2017 when the case reached the Constitutional Court before being referred back to the Gauteng High Court. Applicants argue that the banks did not treat the sale of properties as a last resort and disproportionately targeted black homeowners, while white clients were granted more flexibility during financial hardships.
Mathys further highlighted the racial inequalities in South Africa’s financial sector, noting that black South Africans face systemic discrimination in accessing home loans, despite being quick to be ensnared in other forms of debt, like credit cards and car loans. The EFF has repeatedly called for a judicial inquiry into these practices and demanded banking licenses be revoked for institutions that engage in racial discrimination.
The EFF reiterated the need for the establishment of a State bank, which would offer affordable home loans and fairer credit terms, helping to dismantle the exploitative grip of private financial institutions. “A State bank would ensure homeownership is not a privilege for the few but a right for all South Africans,” Mathys said.
The banks, meanwhile, deny any wrongdoing and are opposing the certification of the class action lawsuit. The EFF remains adamant that without significant government intervention, including housing finance subsidies and stricter regulations, the historical dispossession of black South Africans will continue unchecked.
The case is now awaiting further hearings in the Gauteng High Court, with hopes for justice for those who lost their homes and livelihoods.
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