Banks inquiry is a political hit sponsored by the Guptas

2 September 2016

The Minister of Mineral Resources, Mosebenzi Zwane, who headed up the Inter-Ministerial Committee on the termination of banking relationships with Oakbay Investments (Pty) Ltd, has served his “clients”, the Gupta family, well.

The recommendation to establish a Judicial Commission of Inquiry to look into the allegations surrounding the termination of banking relationships with Oakbay Investments (Pty) Ltd, amounts to a “political hit”, not just on the banking sector, but also on National Treasury and the South African Reserve Bank.

And it proves that, although the Gupta family may now be less brazen, they are just as influential at getting exactly what they want from President Jacob Zuma.

The fact that the Minister of Finance, Pravin Gordhan, was a member of the committee, but boycotted its meetings, shatters the credibility of the committee and its recommendations, and suggests Cabinet are divided on how to deal with the Guptas.

We will therefore petition President Jacob Zuma not to establish a section 84(2)(f) Judicial Commission of Inquiry. In the end, the announcement by the Minister is likely to cause further market turmoil, currency weakness and make a sovereign ratings downgrade more likely in South Africa.

Issued by David Maynier, DA Shadow Minister of Finance, 2 September 2016