Zwane insists he has backing for Gupta bank saga probe

Minerals Resources Minister Mosebenzi Zwane File photo: Simphiwe Mbokazi

Minerals Resources Minister Mosebenzi Zwane File photo: Simphiwe Mbokazi

Published Sep 28, 2016

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Parliament – Mineral Resources Minister Mosebenzi Zwane has insisted that Cabinet approved four resolutions by the ministerial task team that looked into the decision by banks to sever ties with the Gupta family.

In a written response to a parliamentary question this week, Zwane also insisted in direct contradiction to a statement by President Jacob Zuma, that he was not speaking in his personal capacity when he announced that Cabinet had agreed to recommend that the president appoint a judicial inquiry to probe allegations that banks acted unfairly.

“The minister was not speaking in his personal capacity but in his capacity as Chairperson of the IMC [Inter-Ministerial Commission],” his office said on Wednesday in reply to the question from Democratic Alliance finance spokesman David Maynier.

“The minister recorded recommendations made to Cabinet by the IMC as well as the related resolutions taken by Cabinet at its meetings of 06 July 2016 and 31 August 2016 respectively.

“The IMC made five recommendations to Cabinet. Four of the recommendations were approved by Cabinet and one was referred to the President for further consideration as it was not within the purview of Cabinet to take a decision on the matter,” it added.

The response suggested that Cabinet approved all recommendations cited by Zwane in his extraordinary statement of September 2, barring the call to establish a judicial inquiry into the manner in which prominent banks broke ties with the Guptas’s Oakbay Investments.

That statement was repudiated by Zuma the following day, prompting opposition calls for Zwane to resign or be fired. The president made it plain that he was not at the relevant Cabinet meeting and the minister’s move happened without his approval or that of Cabinet.

He said Zwane was speaking in “his personal capacity” and he “does not speak on behalf of Cabinet and the contents of his statement do not reflect the position or views of Cabinet”.

Presidency spokesperson Bongani Ngqulunga said: “The unfortunate contents of the statement and the inconvenience and confusion caused by the issuing thereof, are deeply regretted”.

But when pressed on the issue by Maynier in the National Assembly on September 7, Zwane insisted that there was a need for a probe into banks and the other measures his team recommended.

These include reviewing the mandates of the Banking Tribunal and the Banking Ombudsman and strengthening them to prevent other companies finding themselves in the same bother as Oakbay.

Furthermore, that an inquiry consider the Financial Intelligence Centre Act and the Prevention of Combating of Corrupt Activities Act and the reporting structures they govern as it was unclear whether the banks in question, the Reserve Bank and National Treasury had complied with these, and whether legal action against any of them would be appropriate.

This particular recommendation had prompted the opposition to say that it seemed that Zwane was taking aim at his colleague, Finance Minister Pravin Gordhan, who is seen as being in a power struggle with Zuma.

The other two recommendations were that the country’s clearing bank regulations be reconsidered to allow new banking licences to be issued and that a State bank be created.

Zwane concluded his parliamentary reply by saying he was not at liberty to comment on the matter further.

His office told ANA it would need to verify which recommendations his response implied as having been adopted by Cabinet. The government media department could not confirm the minister’s claim by the end of the working day.

Maynier said his response contradicted Zuma’s statement’s on the matter on several points and showed that he was choosing to defy the president.

He said he had written to Zuma to ask that he fire Zwane as he was not behaving like a minister but an agent for the Gupta family.

“The minister is not backing down, and seems to be determined to please his primary clients, the Guptas, by persuading President Jacob Zuma to establish a Judicial Commission of Inquiry into the termination of financial services to Oakbay Investments (Pty) Ltd,” Maynier said.

“I have written to President Jacob Zuma calling on him to act decisively and fire the Minister of Mineral Resources, Mosebenzi Zwane, who behaves less like a minister and more like a ‘hired gun’ for the Guptas.”

The reply showed, he added that despite Zuma’s denial government was, in the words of Deputy President Cyril Ramaphosa “at war with itself”.

African News Agency

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