Johannesburg - Banks have not changed their decision to close the accounts of the Gupta family businesses despite a cabinet statement on Friday announcing there had been a “constructive engagement” between three ministers and stakeholders in the industry.
The cabinet said it had received a report from the ministers of mineral resources, Mosebenzi Zwane, labour, Mildred Oliphant and finance, Pravin Gordhan, “following their constructive engagement with stakeholders in the banking industry”.
The outcome of the report would be communicated “in due course”, the cabinet said.
The three ministers were given the task in April of speaking to the banks after they decided to close the accounts of Gupta firm Oakbay Investments, citing risks to their reputations after allegations of interference by the Guptas in cabinet appointments - an exclusive prerogative of the president.
But initial attempts by Zwane to meet Absa were rebuffed and a meeting between him and Oliphant and Standard Bank was inconclusive.
Gordhan, who was out of the country when the cabinet made the decision to approach the banks, did not attend these meetings.
The Banking Association of SA supported the decision of its members, saying they had to comply with regulations relating to the Financial Intelligence Centre Act and money laundering.
The cabinet said in April it was concerned about potential job losses and the impact on would-be investors of the decision by the banks.
Oakbay’s auditing firm KPMG and sponsor Sasfin Capital have also severed ties, though it has since appointed SizweNtsalubaGobodo Inc in place of KPMG.
Gordhan was caught by surprise on talk radio station PowerFM last month when three Oakbay executives called in to quiz him about progress in talks with the banks.
Oakbay has said, though it has acquired the services of a foreign bank with operations in South Africa, it will struggle to continue operating and may have to retrench workers if its accounts are closed.
Its claim that 7 500 jobs are at risk has been disputed by Africa Check, which put the figure at closer to 4 900 excluding the New Age newspaper staff.
Atul and Varun Gupta and President Jacob Zuma’s son, Duduzane, resigned as directors of the firm in a bid to rescue its operations but the move had little impact.
Yesterday, Absa said in response to the cabinet statement it had not discussed its clients’ accounts with anyone, including representatives of the government, and would not do so.
Nedbank spokeswoman Esme Arendse said “We would have approached any meeting in a spirit of constructive engagement but would not discuss the banking relationships of any of our clients.”
Oakbay had not responded to requests for comment by the time of publication.
Political Bureau