OAKBAY AND THE BANKS - HOW IT UNFOLDED
APRIL 2016: Banks announce that they have closed the accounts of companies that are part of the Oakbay group, controlled by the Gupta family.
April 8: Oakbay CEO Nazeem Howa writes to Finance Minister Pravin Gordhan complaining of the banks’ decision to close Oakbay bank accounts. He claims this is part of an anticompetitive and politically motivated campaign designed to marginalise Oakbay.
April 17: Howa writes to Gordhan tendering an apology for publicly criticising the minister.
April 21: The cabinet establishes an interministerial committee to investigate the banks’ decision to close Oakbay’s accounts.
April 25: Gordhan receives a legal opinion on whether or not he can intervene in the matter. The legal opinion says it would be unlawful for him to do so.
April 26: The governor of the Reserve Bank writes to the finance minister raising concerns about the deleterious effect on the banking sector of the contentious allegations made by Oakbay.
May 24: Gordhan and other National Treasury officials meet Oakbay executives.
May 24: Gordhan writes to Howa saying the minister of finance cannot act in any way that undermines the regulatory authorities.
May 24: Oakbay tells Gordhan its own legal advice is that any legal approach by it challenging the closure of the accounts or the basis on which this had been effected may be stillborn.
May 29: Gordhan receives a second legal opinion which states that banks are not legally obliged to provide Oakbay with reasons for closing its accounts and that the finance minister cannot approach
the banks and intervene on behalf of Oakbay.
June 19: Howa reveals on current affairs television show Carte Blanche that one of the banks closed Oakbay’s accounts because various laws prevented it from “having dealings with any person or entity who a reasonable diligent (and vigilant) person would suspect that such dealings could directly or indirectly make us a party to or accessory to contraventions of the law”. June 28: The CEO of Sahara writes to Gordhan apologising for public statements and pressing him to serve the national purpose.
July 25: Howa writes to Gordhan saying the banks did not give Oakbay any examples of it transgressing the law.
July 28: Gordhan writes to the registrar of banks and the Financial Intelligence Centre asking whether the FIC had received any reports from the banks in connection with Oakbay accounts and what the nature of the complaints was.
August 4: The director of the FIC
writes to Gordhan giving details of suspicious transactions detected in Oakbay accounts, which led to their closure.
August 10: Gordhan writes to Howa asking why the Oakbay CEO has not yet provided all the information about the banks’ decision to close the Guptacontrolled group’s accounts.
August 12: The deputy governor of the Reserve Bank writes to Gordhan noting that a complaint from Standard Bank regarding an Oakbay company had formed the basis of an investigation.
August 17: Howa tells Gordhan he is out of the country.
September 9: Howa asks to meet Gordhan to consider a full file of correspondence from the bank. The meeting is not granted.
September 2: Mineral Resources Minister Mosebenzi Zwane says the cabinet has decided that a commission of inquiry be set up to investigate why the banks closed Oakbay’s accounts. This is later denied by the government.
October 14: Gordhan files papers in the High Court in Pretoria seeking a declaratory order that he cannot intervene on behalf of the Guptas in the banking matter. —