Radebe: Government not bullying banks to benefit Guptas

Minister Jeff Radebe defended government's intervention in the standoff between SA's major banks and the Gupta family.

Parliament - Minister in the Presidency Jeff Radebe on Thursday defended government’s intervention in the standoff between South Africa’s major banks and the Gupta family.

Announcing decisions of last week’s Cabinet meeting, Radebe said the ministers of mineral resources, labour, and finance would meet with the banks in a bid to find out why they were closing the accounts of Gupta-owned companies.

“Cabinet noted the action by the four banks that gave notice to close the bank accounts of the company,” Radebe said.

“The actions deter future investors who may want to do business in South Africa.”

When pressed on why government was stepping in, Radebe downplayed the intervention saying it was merely an “interaction” to get more information.

“There is no precedent that is being created. This is a normal task team that government creates from time to time if there’s an issue that there has to be looked at…” he said.

He insisted it was not an investigation, and denied that government was trying to influence decisions in the private sector to benefit the Guptas.

“I think they are big boys and girls in the banks. They can never be bullied so the issue of bullying does not arise,” said Radebe.

Oakbay Investments, the holding company of various Gupta family businesses, has complained that the closure of bank accounts could lead to thousands of job losses at the company.

The decision by the banks follow allegations by, among others, Deputy Finance Minister Mcebisi Jonas, that the Guptas had offered him a promotion prior to Nhlanhla Nene being fired as finance minister last year.

President Jacob Zuma, who is largely seen as being too close to the Guptas, has consistently denied that government decisions were being influenced by the family, who come from India.

African News Agency