South Africa says minister, not cabinet, asked for Gupta accounts inquiry

JOHANNESBURG, (Reuters) – South Africa’s presidency said yesterday that a minister not a cabinet team had asked for a judicial inquiry into why banks cut ties with a company belonging to the Gupta family, conflicting messages from a government which appears increasingly divided.

On Thursday, Mineral Resources Minister Mosebenzi Zwane had said the inter-ministerial team, set up by the cabinet in April and led by him, had cabinet backing for its proposal to set up such an inquiry to consider legal action against the banks.

That could trigger further turmoil after markets were rocked by a police investigation of Finance Minister Pravin Gordhan.

South Africa’s Treasury is also in public rows with state-owned companies over their dealings with firms linked to the Guptas, who have been accused of holding undue sway over the President Jacob Zuma.

The statement from Zwane’s team said the banks that had closed Gupta-owned Oakbay Investments’ accounts were influenced by “innuendo and potentially reckless media statements”.

The prominent business family is accused by the opposition of being behind Zuma’s abrupt sacking of former finance minister Nhlanhla Nene in December, a move that rattled investor confidence and triggered calls for Zuma’s resignation.

The Guptas have denied using their friendship with Zuma to influence his decisions, including on cabinet appointments, or to advance their business interests.

The president has acknowledged the Guptas are his friends but denies any improper behaviour based on that.

Last evening, presidency spokesman Bongani Ngqulunga said in a statement that the proposals by Zwane, which had drawn criticism from political commentators, were not the views of the inter-ministerial team, nor the cabinet.

Ngqulunga said the presidency regretted the confusion caused by Zwane’s statement, which “was issued in his personal capacity and not on behalf of the task team or Cabinet”.

As part of its recommendations, Zwane said his team also urged Zuma to set up a state bank and called for new banking licences to be issued to end the “oligopoly” in the industry.

He also said that although Gordhan was one of the cabinet team’s members, he did not take part in its meetings.