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Cape Town - It’s a mistake for ministers to meet with South African banks about a dispute with Oakbay Investments, said the DA’s David Maynier in a statement.
Maynier reacted following a cabinet statement by Minister for Planning, Monitoring and Evaluation Jeff Radebe that Mines Minister Mosebenzi Zwane, Labour Minister Mildred Oliphant and Finance Minister Pravin Gordhan would meet with the banks to find out why they don’t want to have the Gupta family-owned Oakbay Investments as their client.
“The Ministers appear to be intervening, on behalf of the Guptas, in business decisions taken by the banks,” Maynier said. The matter should be left to the South African Reserve Bank as the regulatory authority of the banking industry in South Africa, he added.
Read: Radebe: We're not bullying the banks
“I’ve already requested the governor of the Reserve Bank, Lesetja Kganyago, to look into this matter.”
Maynier also requested that Kganyago investigate whether certain banks who had business relationships with the Guptas complied with all the relevant provisions of the Financial Intelligence Centre Act; and if the investigation determines that certain banks failed to comply, to order any appropriate remedial action or administrative sanctions.
During a post-cabinet briefing earlier on Thursday, Radebe said Cabinet was concerned that the move by South African banks to show away Oakbay Investments could deter future investors who want to open South African bank accounts.
Read: Radebe opens Oakbay can of worms
"Cabinet noted the actions by the four banks that gave notice to close the bank account of a company," he said. "Whilst Cabinet appreciate the terms and conditions of the banks, the acts may deter future potential investors who may want to do business in South Africa.
"Cabinet has endorsed that the ministers of Finance, Labour and Mineral Resources should open a constructive engagement with the banks to find a lasting solution to this matter."
Recently a number of financial institutions, including KPMG, the top four banks and Oakbay’s JSE sponsor Sasfin Capital, said they were cutting ties with Oakbay or had given notice to do so.
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