Calls for banks to be probed go unheard
THERE seems to be a lack of appetite to implement the State Capture Commission recommendations that two of South Africa's major banks should be investigated for participating in dubious business dealings linked to the Gupta family and state capture.
Nedbank and Standard Bank have been implicated in the State Capture Commission report as having corruptly benefited from their business dealings with Gupta-linked Regiments Capital.
This corrupt dealing cost stateowned South African Airways (SAA), the Airports Company SA (Acsa) and Transnet billions of rand through money laundering and fraud.
Zondo handed part one of his report, which contains his explicit remarks on the banks' conduct, to
President Cyril Ramaphosa in January, followed by part two on February 1, the third volume on March 1, and the fourth on April 29.
The fifth, which is expected to be the final volume, is due in June.
Some legal and political experts have expressed concern about the way banks act and conduct business, without being held accountable.
The Zondo Commission report had, among others things, found that a total of more than R35 million had been invoiced by Regiments Capital to Nedbank for various interest swop deals between Nedbank Capital and Acsa, and then Nedbank recovered the money from Acsa over the life of the interest swop transaction.
The report highlighted that Nedbank's arrangement with Regiments Capital was an act contrary to its principal interests.
It also made remarks about Standard
Bank concerning a transaction of more than R22m that was invoiced by Regiments Capital to Standard Bank in relation to a R1.75 billion interest swop, between Standard Bank and Acsa, and then recovered by Standard Bank from Acsa over the life of the interest swop transaction.
Zondo recommended in his report that the banks should be further investigated because the commission ran out of time before completing its own investigation, including hearing their side of the story.
But this has not happened as the Office of the Presidency, which commissioned the Zondo Commission and was handed the report, said it was not its role to investigate the banks.
Instead, Ramaphosa's spokesperson, Tyrone Seale, said: “May I also suggest that you discuss this matter with the South African Reserve Bank (SARB) under whom the regulation of banks resorts.”
Banking Association SA (Basa) spokesperson Kwanele Mdletshe said: “Questions regarding the implementation of the recommendations of the State Capture Commission are best addressed by the commission.”
It has been three months now since the release of the state capture report, which contains the part that refers to the two banks' dodgy dealings, but it seems no one in authority has ever lifted a finger to investigate.
In trying to establish who should take the responsibility for investigating the banks, Independent Media also approached the FIC, the Zondo Commission, SARB, the national Department of Finance and the OBS.
The Department of Finance had not responded at the time of compiling this report.
The OBS distanced itself from responsibility, saying it only dealt with complaints laid by customers.
“Our role is to provide recourse to aggrieved customers of banks in respect of losses that they have suffered or could potentially suffer, owing to maladministration (oversight or negligence or system error) by banks”.
The FSCA said it was studying the report “to determine which, if any, parts of the recommendations made therein fall within the scope of what the FSCA is responsible for.
“At this stage, the Authority is not in a position to provide further details.”
Without specifically referring to Nedbank and First National Bank, the FIC said it continued its work in respect of the commission's findings in line with its mandate, “which is to identify the proceeds of crime and assist in combating money laundering and terrorist financing”.