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Three Cabinet ministers have been assigned to “engage” with the
four banks that gave notice to close the bank accounts of a Gupta-owned company
to find a lasting solution.
Minister in the Presidency Jeff Radebe told journalists this
afternoon that in its meeting held on April 13, the Cabinet noted the actions of
by the four banks that gave notice to close the bank account of a company. He
did not mention Oakbay or the Guptas by name.
Radebe said the three ministers would not be conducting an
investigation, but it was “a normal interaction” where ministers would meet with
the banks’ representatives to get information.
“While Cabinet appreciates the terms and conditions of the banks,
the acts may deter future potential investors who may want to do business in
South Africa,” said Radebe.
He said that Cabinet had endorsed that the ministers of finance
(Pravin Gordhan), labour (Mildred Oliphant) and mineral resources (Mosebenzi
Zwane) should “open a constructive engagement” with the banks to find a lasting
solution to this matter.
Earlier this month, the country’s four biggest banks had given
Oakbay until the end of May before closing its accounts amid speculation that
its owners, the Gupta family, wielded undue political influence.
It was not clear from Radebe’s responses whether the troika of
ministers had already met the banks in the week between the Cabinet meeting,
held last week Wednesday, and today.
Radebe was not forthcoming on the details of how Cabinet got itself
involved in the matter.
He also did not directly address questions of possible interference
by the government, whether the Cabinet could justify deploying ministers to
negotiate on behalf of a private company, whether it was wise or fair for Zwane
– who reportedly enjoys a close relationship with the Guptas – to be among the
three ministers, and whether the Cabinet had done or would do the same for other
private businesses.
Radebe would also not be drawn to comment on the so-called issue of
state capture, which the governing ANC had also acknowledged and was
investigating.
Radebe said he did not know whether Oakbay had approached the
government to intervene. He said the interaction was not interference but the
ministers would try to find out the facts of the matter.
Radebe said this was not creating a precedent and that it was “a
normal task team that the government makes from time to time if there is an
issue that has to be looked at”.
He said interaction between the government and the private sector
happened all the time and there was nothing extraordinary about this
development.
“Whether it happens in the future would depend on the query,” he
added.
He sought to reject any suggestion that the government may try to
bully the banks saying: “I think there are big boys and girls in the banks they
can never be bullied by anybody.”
Last month Deputy Finance Minister Mcebisi Jonas revealed that the
Guptas had offered him the top job at the treasury before President Jacob Zuma
fired then finance minister Nhlanhla Nene.
