Presidency distances itself from bank probe

STATEMENT: ZWANE ‘DOES NOT SPEAK FOR CABINET OR THE PRESIDENCY’

Minister of mineral resources called for judicial probe into Gupta banks.

The presidency last night, distanced itself and Cabinet from a statement by Mineral Resources Minister Mosebenzi Zwane calling for a judicial investigation into banks in response to their refusal to continue doing business with the Gupta family.

The presidency said the comments made by Zwane on the work of the inter-ministerial task team established to consider the implications of the decisions of certain banks and audit firms to close down the accounts and withdraw audit services from Oakbay Investments, was made in his personal capacity.

“Minister Zwane is a member of the task team. He does not speak on behalf of Cabinet and the contents of his statement do not reflect the position or views of Cabinet, the presidency or government. The unfortunate contents of the statement and the inconvenience and confusion caused by the issuing thereof, are deeply regretted,” the presidency said in a statement.

“The presidency wishes to assure the public, the banking sector as well as domestic and international investors of government’s unwavering commitment to the letter and spirit of the country’s constitution as well as in the sound fiscal and economic fundamentals that underpin our economy.”

There was a public outcry yesterday morning from opposition parties on what appeared to be a call by Cabinet for a judicial investigation into banks. Zwane’s statement suggested his stance had in fact been endorsed by Cabinet.

Issued late on Thursday night, the minister recommended that President Jacob Zuma, pictured, should institute a judicial inquiry into allegations that banks acted “unilaterally and allegedly in collusion” when they closed the banks accounts linked to the Gupta family and broke ties with Oakbay Investments.

Zwane headed an interministerial committee (IMC) that has looked into the decision since April, on the stated motivation that the banks’ actions could lead to the loss of 7 500 if the Guptas were forced to close their companies and that investment in general could be negatively impacted.

The committee included Finance Minister Pravin Gordhan but, as Cabinet confirmed, he opted not to participate in its interviews with banks, insurance companies and Oakbay Investments.

Apart from recommending an inquiry, Zwane also recommended a review of the Banking Tribunal and the Banking Ombudsman.

“Evidence presented to the IMC indicated that all of the actions taken by the banks and financial institutions were as a result of innuendo and potentially reckless media statements, and as an SA company, Oakbay had very little recourse to the law.” – ANA