Banks testify at state capture commission

Two of SA’s major banks outright rejected to meet senior ANC leadership and two of former president Jacob Zuma’s cabinet ministers to discuss the closure of Gupta-linked bank accounts.

Officials from FNB and Absa on Tuesday testified at the Zondo Commission of Inquiry into state capture that it was inappropriate for the banks to discuss client relations with any third party as it would put the banks at risk of being exposed to sanctions from national and international financial regulatory authorities.

FNB’s Johan Burger and Absa’s Yasmin Masithela gave more evidence of cabinet and the ANC’s efforts to meet with the banks.

The latest testimony puts the ruling party under further pressure to explain why its officials sought to interfere in legally protected bank-client relationships.

While Standard Bank’s Ian Sinton on Monday admitted that he and bank CEO Sim Tshabalala met with the ANC NEC and cabinet’s inter-ministerial committee (IMC) following the bank’s closure of multiple Gupta accounts in 2016, FNB and Absa refused to meet with the IMC – led by former mineral resources minister Mosebenzi Zwane.

Burger Tuesday said he had discussed the meeting request with senior party official Enoch Godongwana who later cancelled the meeting after Burger sought clarity on its purpose and who would be attending.

Burger said Godongwana had told him the ANC was in the process of meeting with Standard Bank, Barclays Africa (now Absa) and Nedbank about the closure of the Gupta accounts.

“I was surprised by the call and the purpose of the meeting. In my 32 years of banking experience, it’s the first time ever receiving a request from a political party to discuss a bank-client relationship,” said Burger.

Absa’s Masithela was adamant it would be completely inappropriate for the bank to discuss its relationship with a client with any third party.

Worse yet, she said, would be the prospect that a bank would decide to reverse a decision, based on concerns about possible financial crimes, because of external pressure.

Yet, as it emerged from Sinton’s evidence on Monday, it seemed this is exactly what Zwane and his committee wanted the banks to do in relation to the Gupta account closures.

Sinton made it clear that he believed the purpose of the IMC meeting with Standard Bank was to persuade it to reverse its decision to close Gupta accounts, based on the impact on the dependents of employees.

Masithela revealed the bank refused to meet with Zwane’s IMC because “we did not understand why the committee would be interested in private bank accounts”.

Backed up by the Pretoria High Court’s ruling on former finance minister Pravin Gordhan’s opposition to being forced to intervene in the Gupta family’s business affairs, Masithela said it was clear the IMC did not have the legal authority to do what it was doing.

“There is no legislation that allows the executive to interfere in private client relationships,” Masithela testified. While Zwane and labour minister Mildred Oliphant have both been notified they are implicated by the bank officials testimony, it’s understood the inquiry’s legal team is still considering whether to do so in respect of Gwede Mantashe, Jesse Duarte and Godongwana.

First time receiving a request from a political party to discuss a bank-client relationship

FNB’s Johan Burger