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Johannesburg - Standard Bank has expressed concern that government may still launch an inquiry over why it and other banks closed accounts of Gupta-linked Oakbay.
This is according to Standard Bank’s explosive affidavit issued to the North Gauteng High Court regarding the closure of Oakbay’s bank accounts.
Standard Bank's affidavit, which runs over 70 pages, was filed on Wednesday in response to a court bid launched by Finance Minister Pravin Gordhan in October.
READ: Why Standard Bank closed Oakbay's accounts
In that bid, Gordhan sought to ask the court for a ruling that he doesn’t have the authority to interfere with whom banks choose as clients.
Earlier this year, Standard Bank, FNB, Absa and Nedbank closed Oakbay accounts. The move further sparked political reaction from Mineral Resources Minister Mosebenzi Zwane, who controversially issued a statement that Cabinet planned launching a judicial inquiry into the matter.
Zwane's call to probe banks
The presidency subsequently said Zwane did not speak on behalf of Cabinet and that his statement did not reflect the views of Cabinet, the Presidency or government.
But Standard Bank, in its affidavit, said it fears that the possibility of an inquiry still exists.
“What is lacking from the statement of the Presidency is a confirmation or otherwise on whether the Committee, or task team, discussed and made the recommendations contained in this statement to Cabinet,” said Standard Bank in court papers.
“The result of this lack of clarity creates the reasonable belief that a real possibility remains that some of the recommendations contained in the statement issued by Minister Zwane, could, in one form or the other, be carried out and given effect.
“This belief is reinforced by claims that the Gupta family still has business interest in the Republic and that the decision by Standard Bank and other banks to close their accounts jeopardises the interest of employees of business entities linked and/or controlled by the Gupta family,” said Standard Bank.
READ MORE: Standard Bank in bid to block Zuma's Gupta intervention
In its affidavit, Standard Bank further said that a “clear indication” that government may take some action in light of Zwane’s controversial statement is President Jacob Zuma’s recent answers in Parliament.
On November 23, 2016, Zuma opened the door to a possible inquiry after responding to questions from MP Bantu Holomisa about the status of the recommendation of a judicial inquiry.
Collusion among banks?
On that day, Zuma hinted at what he described as possible collusion among the banks in terms of the Oakbay account closures.
“The action looks suspicious and as government responsible to govern this country, we’ll certainly have to investigate what is this and we started very politely by sending a team to meet the banks to say what is happening,” said Zuma.
Standard Bank, in its court papers, said that it Zuma’s statements showed that he considers the banks’ decisions to close Oakbay and associated accounts as having being taken “without due consideration” and that the president believes there may be collusion - a claim that Standard Bank is denying.
Standard further expressed concern that Zuma could still be mulling Zwane’s controversial statement about an inquiry into the matter.
“The contents of Minister Zwane’s unauthorised statement are still being considered, which means that they may still be given effect to,” said Standard Bank.
“This is despite the President alleging that he reprimanded Minister Zwane for his unauthorised statement,” said Standard Bank.
“It is clear that government seeks to further intervene with Standard Bank’s decision to terminate its relationships with Oakbay and its associated entities.
Unlawful intervention
“Standard Bank contends that the intervention that has already occurred and that which is being considered by the President were and would be unlawful for the reasons set out in this affidavit,” said the bank.
The bank added that where it has terminated its relationship with Oakbay it has done so in a bid to avoid contraventions of and compliance with local and international banking regulations and that no government official or inquiry can direct this terminated relationship to be reinstated.
In its affidavit, Standard Bank goes one step further than Gordhan in asking the North Gauteng High Court to prevent President Jacob Zuma and any of his ministers from intervening in its decision to close company accounts associated with Gupta-linked Oakbay.
Standard Bank's reasons for closing Oakbay's bank accounts stemmed from concerns such as the company having politically exposed persons, or 'PEPs', and to steer clear possible suspicious transactions.
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