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FirstRand’s former chief executive Johan Burger has conceded that he accepted an invitation to attend a meeting in Luthuli House to discuss Gupta accounts, but refused an invitation from an inter-ministerial committee if they wanted to discuss the same.
Burger, testifying at the state capture commission of inquiry in Parktown, Johannesburg, on Tuesday, said that he had agreed to attend a meeting at the ANC’s head office knowing the discussion would be about the Gupta accounts but told the Cabinet inter-ministerial committee, in email communication, that he would not discuss client-specific matter if he was to honour its invitation.
Burger said he had placed conditions on their invitation that the bank would only attend if all the inter-ministerial committee members attended the meeting, especially the then finance minister, and would not attend if any client-specific matter was on the agenda as that would be illegal.
He said he did not attend the ANC meeting because he was told it was called off and the inter-ministerial committee also did not materialise.
In his testimony Burger also said that the bank would close accounts whose holders’ activities, according to the bank, may pose reputational and business risk to the bank.
The bank closed the accounts of Gupta-linked business because of business and reputational risks.
Pressed to respond to questions from Deputy Chief Justice Judge Raymond Zondo, Burger said the bank was consistent in its application of the principle that if a client posed a reputational risk the bank would disassociate with that client.
“If we believe that could have a negative reputational risk on the institution we will not have that relationship,” Burger said, emphasising that being a political party did not automatically disqualify them.
Asked by Zondo if an organisation or a political party held views and beliefs that were contradicting those of the bank and in the opinion of the bank posed reputational risk it would close its account, Burger attempted not to directly respond but eventually conceded that the bank would apply the same principle.
“We will always apply the same principles consistently,” he said.
Burger said all bank accounts belonging to Gupta-businesses, except mortgage accounts, were closed.
The bank closed the bank accounts of Tegeta, TNA Media, Islandsite and Sahara Computers after flagging suspicious activities on them and reporting it to the Financial Intelligence Centre as required by law.
Burger also denied that banks were colluding to close down Gupta bank accounts.
Burger was followed by Absa’s former chief compliance officer Yasmin Masithela who confirmed that the bank’s top brass was present at the ANC-summoned meeting.
Masithela said the meeting was attended by the then ANC secretary-general Gwede Mantashe, Enoch Godongwana, Jessie Duarte and lawyer Krish Naidoo. They discussed allegations that banks were colluding, which Absa denied and referred the party to the Competition Commission.
Absa also did not meet with the inter-ministerial committee.
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