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Johannesburg – Government should have approached the banking regulator instead of the individual banks over the closing of the Gupta family’s accounts, the ANC said on Wednesday.
"The point we are making is that a relationship between a bank and client is between the bank and the client," national spokesperson Zizi Kodwa told News24.
"That’s why, even in our own meeting we had with the banks, that was the first point they established with us, that they were not going to discuss the relationship between themselves and a client," he said.
It is against the law for banks to disclose information about a client to a third party.
Kodwa said the ruling party did not want to speculate on why government made the decision to meet with the banks. Nevertheless, the party believed government should have approached the SA Reserve Bank instead.
Ended business relationship
Last month, Minister in the Presidency Jeff Radebe said that Mineral Resources Minister Mosebenzi Zwane, Labour Minister Mildred Oliphant and Finance Minister Pravin Gordhan had been tasked with meeting South Africa’s four biggest banks after they cut ties with Oakbay Investments, owned by the politically-connected Gupta family.
Standard Bank, FNB, Absa and Nedbank, as well as accounting firm KPMG and Oakbay's JSE sponsor, Sasfin Capital, ended their business relationships with the Gupta-owned firm.
Earlier this week, Reuters reported that more South African companies, including a subsidiary of Old Mutual, had stopped doing business with Oakbay.
Fin24 reported on Tuesday that Oliphant conceded a meeting between Cabinet ministers and the banks had taken place. However, she refused to provide further details as the ministers still had to report back to Cabinet on what had transpired.
Door slammed in face
Despite this, the Democratic Alliance wanted Radebe to make a public statement clarifying whether any ministers had met with the banks.
DA finance spokesperson David Maynier said that, since then, Gordhan had distanced himself from the meeting and Zwane reportedly "had the door slammed in his face" by Absa.
"We cannot have a situation where ministers are secretly meeting with banks and it’s now time for the minister to make a public statement.
"In the end, the ministers should not be interfering in business decisions taken by banks and this matter is best left to the South African Reserve Bank, which is responsible for the regulation of the banking industry in South Africa," he said.
Impact on workers
Kodwa said the ANC’s biggest concern about the banks' decision to cut ties with the Gupta-owned company was the impact it would have on workers.
In March, following allegations that the Guptas had offered Cabinet positions to party officials, the ANC’s national executive committee (NEC) instructed officials and the national working committee (NWC) to gather pertinent information about the allegations.
ANC secretary general Gwede Mantashe at the time said the issue was being taken seriously and called on those with evidence to come forward.
Kodwa on Wednesday said the process was ongoing and people were still coming forward with information.
"Like we said, at an appropriate time the office of the SG [secretary general] will give a report to the organisation," he said.
