Johannesburg - In their desperation to get Finance Minister Pravin Gordhan to intervene in the closure of their bank accounts, the Guptas heaped praise on the minister for his “strong pedigree as a liberation fighter”.
The Guptas also acknowledged Gordhan’s position as the “political head of (South Africa’s) economy”.
This is revealed in Gordhan’s latest court papers responding to the Guptas’ assertion in court papers there was no factual dispute in their case against the minister as they had accepted he was neither obliged nor allowed to intervene in their battle with the four major banks.
In their papers filed on Thursday, the Guptas stated the minister’s earlier affidavit was “replete with allegations and commentary which is unfounded, irrelevant, vexatious and scandalous”.
The Guptas also alleged Gordhan had found it wise to refer to an incident when Deputy Finance Minister Mcebisi Jonas alleged he was offered ex-finance minister Nhlanhla Nene’s position.
Gordhan, however, in his heads of argument filed on Friday, cited the meeting he had with the Guptas and the correspondence they sent to him as proof the politically connected family had approached him in seeking his intervention.
In their letter, Gordhan said, the Guptas pleaded for assistance, raising “concern around the livelihoods of our 7 500 staff”.
“The minister describes these approaches as 'representations and demands'. Oakbay demanded that on behalf of government I intervene with the banks to achieve a reversal of their (the banks’) decision.
”There can be no serious suggestion that the minister was not subjected to pressure both unprecedented and outside the law by the Gupta-controlled Oakbay companies to intervene.
“Yet Oakbay now attempts to create the impression in its answering papers that it did not 'demand' 'or even ask' that the minister reverse the closures This is untrue.”
Gordhan was again scathing of the Guptas’ latest argument claiming he was targeting them and their company, Oakbay, for political reasons. He said the Guptas’ arguments were fraught with contradictions.
Gordhan said it was surprising the Guptas were advancing a political conspiracy theory which “finds no footing in the papers”.
“Neither the court papers nor even the newspapers, some of which the Guptas own, provide any credible basis for this extraordinary claim.”
This, Gordhan said, was “self defeating”.
“...nothing more needs to be said about these scurrilous allegations – other than that the replying affidavits demonstrate they are entirely untenable.”
Gordhan also said all the four major banks- Absa, FNB, Standard Bank and Nedbank – had in their affidavits affirmed his view that intervention would have been in conflict with the existing regulations.
“It may expose both the banks and (indirectly) government to very substantial penalties by foreign regulators, contradict the principles governing de-risking, and compromise banks’ ability to participate in the financial market.
"This could be disastrous for the economy.
“We are not aware of any judgment anywhere in the world where a power to intervene in the closure of bank accounts has been implied."