Banks' Gupta decision could deter investors: gov't - TechCentral

Banks’ Gupta decision could deter investors: gov’t

Jeff Radebe

Jeff Radebe

Cabinet was concerned that the decision by the country’s big four banks to cut ties with the Gupta-owned Oakbay Investments would deter investors, planning minister Jeff Radebe said on Friday.

“While cabinet appreciates the terms and conditions of the banks, the acts may deter future potential investors who may want to do business in South Africa,” he told reporters at parliament.

On Thursday, he said mineral resources minister Mosebenzi Zwane, labour minister Mildred Oliphant and finance minister Pravin Gordhan had been told to intervene after the banks cut ties with the business.

Standard Bank, First National Bank, Absa, Nedbank, accounting firm KPMG, and Sasfin Capital severed ties with the Gupta-owned firm due to the family’s questionable involvement in the country’s political affairs.

The ministers were expected to report back at the next cabinet meeting in two weeks. He said it was not an investigation, but an intervention.

He refused to comment on reports that Gordhan was not pleased about being assigned the task.

Gordhan had reportedly not attended the meeting where it was decided that he, Zwane and Oliphant should intervene, and had not appreciated being selected.

“I think you’d better ask him,” Radebe said.

News24

8 Comments

  1. Rejecting to work with a dodgy company is far better than what the ANC government has done to boost market confidence. The ANC has no room to speak.

  2. You got that right Bertie! Each and every single one of these so-called ministers has never held a competitive job earning an honest salary in his/her entire natural life,much less run a business.(Financial tape worms is my definition of a politician by the way)
    The just war on the Gupta Boyz has done more to encourage faith in the future in this country than Radebe and his Zupta cabinet parrots ever could.
    Now we await the final link in the Biznessmen chain, the prosecution and CONVICTION of Zuma on 700 plus counts of corruption…then we will see some real investment taking place. Count on it.

  3. “……..the acts may deter future potential investors who may want to do business in South Africa,” Incomplete sentence Jeff my lad. You should home in specifically on companies with dodgy and questionable motives wanting to do business in South Africa.

  4. Hitting Thefan on

    It is quite a good thing with regards to the state capture thing, because now you can see that the ANC is not only corrupted by Zuma but by most of the ministers showed through there subsequent decisions.

  5. My question still remains: These institutions obviously know a lot mote of their[Guptas] “intimate” details, but are also in the game for the money, so what is it that they know that scared the living daylights out of them?? They definitely don’t care about politics, or they would refuse to handle banking or accounting for certain political parties?

  6. CharlieTango on

    What BS. It’s the ANC ministers that are concerned that they won’t able to cash in on the dodgy business dealings. And that includes the ANCYL president and his loan from the Gupta bank.

  7. Magnus Springston on

    This is utter BS. The Gupta’s and their sort should simply F-off… wait, they did that, then let them go, now go after their assets and the rest of their mates. I guess this is one way of cleaning up the mess we have for leaders today.

    On the other hand, it took public outcry for the banks and auditors to do something about this, that alone is a concern and one that suggests that banks and auditors are aiding many elicit transactions daily until, that is, there is public pressure to do something about it.

    SO in my opinion both Government, Banks and Auditors are at fault on this one.

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