Bank summoned by ANC, hearing told

When Standard Bank cut ties with the Gupta family in 2016, two government ministers and senior ANC leaders allegedly questioned whether they were doing so as part of a “white monopoly capital” plot and if they were “taking orders from Stellenbosch”.

Explosive testimony by the bank’s lawyer and head of compliance Ian Sinton to the state capture inquiry revealed how former mineral resources minister Mosebenzi Zwane even suggested he would change the law so that banks would not be able to close accounts like they had with the Guptas.

“Minister Zwane said that, as a member of the ruling party, he had the ability to get the law changed, and he was trying to propose a change to the law whereby it would become illegal for banks to close accounts in these circumstances,” Sinton testified.

He also said that bank officials had queried why Mzwanele Manyi‚ who later took over the Gupta family’s media empire‚ was attending a meeting about the bank shutting down their accounts.

“We asked on what basis he was attending and we were told that he was an adviser to the minister‚” Sinton said.

The Zondo Commission of Inquiry is probing, among other things, whether any minister or deputy minister improperly intervened in the decisions by four major banks to close the Guptas’ accounts.

Zwane made headlines in September 2016, when he announced that the cabinet had resolved to ask then president Jacob Zuma to initiate an inquiry into the banks that had cut ties with the Guptas.

The cabinet and Zuma distanced themselves from Zwane’s statement, which Zuma said had been issued in Zwane’s personal capacity.

Now Sinton has revealed how Zwane and labour minister Mildred Oliphant – during an inter-ministerial committee meeting attended by Gupta ally Manyi – attempted to persuade him and Standard Bank CEO Sim Tshabalala to reverse the bank’s decision to close Gupta business accounts.

He said the bank had decided to close the accounts following a series of media revelations about the Gupta family’s alleged involvement in the hiring and firing of cabinet ministers, and strange transactions.

The transactions included the transfer of money meant for the Estina Dairy Project to Dubai and attempts to transfer a R1.4bn mine rehabilitation trust account from Standard Bank to the Bank of Baroda.

Sinton said Standard Bank did not believe the response given by the Guptas’ business associates as to why this had been done.

They had claimed it was because the Bank of Baroda offered a better interest rate.

“No-one had inquired of us what interest rate we were actually paying on that account. So we didn’t believe the answer,” he said.

The trust account was frozen following a high court application by Outa.

Sinton said Standard Bank had also been alarmed by reports that Westdawn Investments, whose account Standard Bank managed, had been involved in the purchase of a home for one of Zuma’s wives.

The bank’s concerns were intensified when acting Oakbay CEO Ronica Ragavan initially denied any involvement in this purchase, but later admitted that she had signed a Bank of Baroda bond for the property.

The bank had clear legal backing in making its decision to no longer do business with the Guptas.

But despite this, the ANC summoned Standard Bank officials to Luthuli House to explain.

Sinton understood that the meeting had been initiated by then ANC secretary-general Gwede Mantashe, and was attended by senior party officials Jessie Duarte and Enoch Godongwana. At that meeting,

Sinton said, “we were asked to comment on the allegation that we were part of white monopoly capital and that the closing of the accounts was part of a campaign of ours to drive black people out of business in South Africa.

“We dealt with that in that meeting, but I asked who was responsible for this notion, on what basis did they come to the conclusion that they accused us of being part of this conspiracy?

“And they refused to give an answer to that question.

“We were asked to comment on the reports that we were taking instructions from people in Stellenbosch.

“We rejected those out of hand.

“I think it’s the first time that I’ve seen my boss, Sim Tshabalala, really angry.”

Sinton said former Oakbay CEO Nazeem Howa had confirmed that he had asked the ANC to intervene after four banks severed ties with the Guptas.

He said Howa said he had written to Zuma about the closed accounts.

Later, when Sinton and Tshabalala attended the interministerial meeting with Zwane and Oliphant, Sinton said they were again asked to respond to claims that they had colluded with the other banks to shut down Gupta accounts. The bank denied the accusations.

“Towards the end of the meeting, they reminded us that as a bank we operated under a licence granted by the government and suggested we should be more responsive to concerns that they were raising on behalf of the government.

“We said as far as we were concerned, we complied with all the laws of the land.”

Representatives from Absa and First National Bank are expected to testify on Tuesday.