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Johannesburg - Nedbank said Mineral Resources Minister Mosebenzi Zwane urged the lender to reconsider its decision to sever ties with companies tied to the Gupta family, who are friends of President Jacob Zuma and in business with his son.
Nedbank in a letter to Oakbay Investments dated April 7 said a continued relationship with the Gupta-controlled company would “create material business risks that could pose significant reputational risks,” according to an affidavit filed in the Pretoria High Court by CEO Mike Brown on Monday. It gave the company 30 days to find alternative bankers.
After the country’s four biggest banks closed their accounts earlier this year, the Guptas asked Finance Minister Pravin Gordhan to intervene. Gordhan went to court in October seeking an order stating that he can’t prevent banks from cutting clients.
The lenders, including Standard Bank, Barclays Africa and FirstRand have said they agree with Gordhan’s stance. Nedbank has to consider international banking rules on anti-money laundering, bribery and corruption when dealing with customers, Brown said in the court papers.
Brown agreed to meet Zwane in May as the minister had been appointed to head an inter-ministerial committee that also included Gordhan and Labour Minister Mildred Oliphant to probe why the banks stopped doing business with the Guptas.
Zwane told Brown that the finance and labour ministers were aware of the meeting and had mandated him to proceed in their absence.
“The overall impression I came away with was that the purpose of the meeting was to determine whether there was a co-ordinated decision among the major South African banks to terminate the accounts of persons affiliated with the Gupta family,” Brown said, “and whether Nedbank would consider engaging with the relevant entities as their primary banker.”
Zwane’s spokesperson didn’t immediately respond to a phone call and e-mail seeking comment.
In the same affidavit, Brown revealed that Communications Minister Faith Muthambi and Mzwanele Manyi "were part of the interministerial committee delegation he met with to discuss the closure of Gupta bank accounts", according to Business Day on Tuesday.
"Manyi, who is running a campaign in support of the Guptas, is said to have attended in his capacity as an adviser to Muthambi," the paper said. "Their participation in the meeting with Nedbank adds to questions around the standing of the committee."
