BANK ‘URGED TO TAKE ON THE GUPTAS’

THE THEN mineral resources minister, Mosebenzi Zwane, pressured Nedbank to take over banking services for the controversial Gupta family and “save jobs” after other major banks closed their business accounts in South Africa.

Nedbank chief executive Mike Brown told the state capture commission of inquiry yesterday that he was asked to attend a meeting with the inter-ministerial committee led by Zwane.

Brown was accompanied by two other executives at the meeting, held at Zwane’s office in Pretoria in May 2016.

Brown said Zwane opened the meeting and expressed dissatisfaction that some banks refused to attend committee meetings, and then proceeded to talk about the powers of the committee. Brown said he felt this was “a veiled threat”.

Brown said that despite his insisting that the bank’s relationship with its clients could never be discussed, Zwane delved into the closing of the Gupta accounts. “I felt that numerous references to the (banking) licensing regime were an attempt to pressure the bank. At the closing of the meeting, Zwane asked Nedbank to take over the banking transactions of the Guptas, since all other banks had closed their accounts,” testified Brown.

Zwane was the only minister at the meeting. Brown said the invitation sent to the bank had stated that the committee consisted of Zwane, then communication minister Faith Muthambi, Labour Minister Mildred Oliphant and then finance minister Pravin Gordhan.

However, Muthambi, Gordhan and Oliphant were not in attendance.

“I was assured by minister Zwane that the minister of finance (Gordhan) was aware of the meeting, but I found it odd that the finance minister was not there,” said Brown.

He testified that keeping the Guptas’ accounts posed an associated risk, and more so after KPMG terminated its relationship with the family. |