MINISTERS DEFY CABINET IN GUPTA BANK SAGA
Mosebenzi Zwane finds himself alone in bid to convince banks to reopen Oakbay accounts
GUPTA-LINKED Mineral Resources Minister Mosebenzi Zwane is on his own in the fight to convince four banks to reopen Oakbay accounts as his two colleagues on an inter-ministerial committee keep their distance.
The Sunday Times understands that Zwane wrote to Absa, FNB, Standard Bank and Nedbank requesting meetings after the cabinet decision to set up an inter-ministerial committee to negotiate on behalf of the Gupta family.
The banks replied, citing client confidentiality and asking for clarity about the purpose of the meetings. Zwane wrote back insisting on meetings, but did so without the backing of Finance Minister Pravin Gordhan and Labour Minister Mildred Oliphant, who were mandated by the cabinet to join Zwane in negotiating on the Guptas’ behalf.
It is understood that Gordhan, who refused to take part in a post-budget business briefing arranged by the Gupta-owned New Age newspaper in February, has no interest in getting involved. He has become even more wary of the family after it emerged they had offered his deputy, Mcebisi Jonas, the finance ministry job to replace Nhlanhla Nene last year.
A cabinet minister told the Sunday Times this week that Gordhan was defying a cabinet decision to help a company that was creating jobs. “What he is doing is dangerous . . . cabinet decided. These banks cannot do what they like,” the minister said.
The minister, a supporter of President Jacob Zuma and the Gupta family, said the decision was not about individuals but the fact that the banks were setting a bad precedent.
Oliphant’s spokesman, Sthembile Tshwete, said the minister was out of the country at the time the cabinet decided on the intervention.
A source close to the labour ministry said it was unclear what role Oliphant would play.
Zwane is expected to hold his first meeting with Absa — the first bank to cut ties with Gupta businesses. On Friday he was in Mpumalanga, meeting workers at the Guptas’ Optimum mine, who told him the account closures would lead to job losses.
Zwane was at the centre of controversy when he flew to Switzerland to negotiate on the Guptas’ behalf about the Optimum acquisition in December. His spokesman, Martin Madlala, referred questions to the cabinet.
“Minister Zwane is part of an interministerial committee selected by cabinet to engage the banking sector at large. The committee will communicate the outcomes once the process has concluded,” he said.
Like Oliphant, Gordhan was out of the country when the inter-ministerial committee was set up, at a meeting of the World Bank. Treasury spokeswoman Phumza Macanda would not comment on the matter.
Numerous attempts to get clarity on the role of the ministers from Minister in the Presidency Jeff Radebe, who announced the cabinet’s decision, were unsuccessful.
ANC secretary-general Gwede Mantashe confirmed Oakbay had asked the party for assistance but was turned down. “We said it is a regulatory matter that should be taken up by the consumer commission.”
The National Consumer Commission has said it will look into the matter. According to financial legislation, the commission and the banking ombudsman are the only bodies allowed to intervene in a dispute between banks and a private company.
Zwane’s meeting with Absa is tentatively scheduled for next week. A bank spokesman said the agenda had yet to be confirmed.
FirstRand’s head of investor relations, Sam Moss, said no meetings had been scheduled between FNB and the inter-ministerial committee.
Nedbank spokeswoman Esme Arendse said: “Nedbank always has a very positive relationship with government and if we were asked for a meeting by any government departments, I have no doubt we would approach it in an environment of constructive engagement. Like we would for any stakeholder.”
Standard Bank refused to comment.
Commission and bank ombudsman are the only bodies allowed to intervene