Bank Crisis: Ministers’ Gupta intervention a mistake

21 April 2016

The decision by the Minister of Finance, Pravin Gordhan, the Minister of Labour, Mildred Olifant, and the Minister of Mineral Resources, Mosebenzi Zwane, to meet with the Banks to find a ‘lasting solution’ to the dispute with Oakbay Investments, is a mistake.

This matter is best left to the South African Reserve Bank which is responsible for the regulation of the banking industry in South Africa.

I have already requested the Governor of the Reserve Bank of South Africa, Lesetja Kganyago, to look into this matter, including:

- investigating whether certain banks, who had business relationships with the Guptas, complied with all the relevant provisions of the Financial Intelligence Centre Act (No. 38 of 2001); and 

- if the investigation determines that certain banks failed to comply, to order any appropriate remedial action or administrative sanctions.

 The Ministers appear to be intervening, on behalf of the Guptas, in business decisions taken by the Banks.

Issued by David Maynier, DA Shadow Minister of Finance, 21 April 2016