The intervention of the South African Cabinet in the dispute between the Gupta family owned Oakbay Investments and the country’s banks need to be examined further, former Public Protector Thuli Madonsela noted in her contentious report on state capture released on Wednesday.
“Cabinet appears to have taken an extraordinary and unprecedented step regarding intervention into what appears to be a dispute between a private company co-owned by the President’s friends and his son,” said Madonsela in her “State of Capture” report.
“This needs to be looked at in relation to a possible conflict of interest between the President as head of state and his private interest as a friend and father as envisaged under Section 2.3 (c) of the Executive Ethics Code which regulates conflict of interest and Section 195 of the Constitution which requires a high level of professional ethics.”
Finance Minister Pravin Gordhan revealed in September that he had met with then Oakbay Investments CEO Nazeem Howa in May this year but told him that he could not intervene in the dispute.
Absa, FNB, Nedbank and Standard Bank stopped providing their services to Oakbay following allegations that the Gupta family was unlawfully involved in making ministerial appointments.
Presidency Minister Jeff Radebe said Cabinet was concerned that the decision by the banks could scare off investors.
In April, three Cabinet ministers – Mosebenzi Zwane, Mildred Oliphant and Gordhan – as an inter-ministerial committee, were tasked with setting up a meeting with the banks “to open constructive talks to find a lasting solution”, Radebe said during a media briefing at the time.
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