Government will hound SA banks until Gupta issue is resolved

[BusinessTech]

Government will hound SA banks until Gupta issue is resolved

The government officials tasked with investigating why South Africa's retail banks severed ties with the Gupta-owned Oakbay in April will not rest until the matter is resolved - even if it means setting up a state-owned bank.

 

[TheChamp]

We already have a state owned bank, Postbank, imagine what a nice cash injection it would be for the Post Office if all those Gupta employees can get their salaries through Postbank.....

 

[Mike Hoxbig]

So set up your state bank while we all laugh at it go down the tune with every other state owned enterprise. Further prove to everyone how competent government is...

 

[LaraC]

The presidency said that the move by the banks, while their prerogative in terms of banking law, had the potential to chase investment away from the country.

I wonder which move was more harmful to the economy. Banks not doing business with Oakbay or say a Finance Minister being fired overnight?

 

[rph72]

Cabinet targets banks that snubbed Guptas

Johannesburg - South Africa’s cabinet is targeting the banks that shut down the accounts of the Gupta family, as the uproar over Eskom’s dealings with a Gupta-owned company continues.

It emerged on Thursday that the cabinet had taken an unprecedented decision to ask President Jacob Zuma to set up a judicial inquiry to investigate auditing firms and the banks that closed the accounts belonging to the influential family, who have close ties to the president.

Mineral Resources Minister Mosebenzi Zwane, who is allegedly close to the Guptas, confirmed on Thursday night that the cabinet took the decision at a meeting in Cape Town on Wednesday.

More here.

 

[Sinbad]

Time to shut down all anc accounts too.

 

[Necropolis]

/sigh

 

[NarrowBandFtw]

Why is the tail trying to wag the dog? Eventually the banks will hound Government until the Gupta issue is resolved, that or they'll just leave ... choose

 

[ToxicBunny]

What happens if the banks decide to suspend the government department accounts for breaching financial regulatoins?

 

[Albert Broco]

South Africa urgently needs to get downgraded to junk status by credit rating agencies, this will be for the good of the country. Perhaps not to citizens in the short run, but in the long run, this will enable a forced regime-change and an opportunity to attempt to rebuild this country.

 

[Albert Broco]

What happens if the banks decide to suspend the government department accounts for breaching financial regulatoins?

Government will speedup changes to the banking act to take over control over bank licensing and move all their accounts to the new so-called state bank and suspend all other private banking licenses. I heard from someone inside SABRIC that these were the threats made already to banks. Talks in the 'corridors' are that they might leave one bank, but limit operations, which is Standard Bank.

 

[SoTrue]

These are the reasons why the ANC gets a bloody nose time and time again:
- the elected few (say a few hundred or thousand) argue that they were elected by the majority of the people
- they therefore have the support of the majority of the people
- in their hearts they believe they can therefore do as they please.
- if a law prevents them from doing what they want the law is wrong and must be changed.

They just cannot understand that other entities, such as the courts, banks, Public Protector, other public entities, Reserve Bank, other political parties, etc can prevent them from doing what they want. This attitude comes from Number One and is instilled in others.

That's why they make one embarrassing statement after the other and lose court cases time and time again.

 

[TooFastTim]

but in the long run, this will enable a forced regime-change and an opportunity to attempt to rebuild this country.

Why would it force regime change? Complete collapse of the Zimbabwean economy changed nothing.

 

[BBSA]

Presidency says Minister Mosebenzi Zwane's statements not govt position

http://www.thepresidency.gov.za/pebble.asp?relid=22625

The statement issued by the Minister of Mineral Resources, Mr Mosebenzi Zwane yesterday on 1 September 2016, on the work of the task team established to consider the implications of the decisions of certain banks and audit firms to close down the accounts and withdraw audit services from the company named Oakbay Investments, was issued in his personal capacity and not on behalf of the task team or Cabinet.

Minister Zwane is a member of the task team. He does not speak on behalf of Cabinet and the contents of his statement do not reflect the position or views of Cabinet, the Presidency or Government. The unfortunate contents of the statement and the inconvenience and confusion caused by the issuing thereof, are deeply regretted.

The Presidency wishes to assure the public, the banking sector as well as domestic and international investors of Government’s unwavering commitment to the letter and spirit of the country’s Constitution as well as in the sound fiscal and economic fundamentals that underpin our economy.

 

[TooFastTim]

Government will speedup changes to the banking act to take over control over bank licensing and move all their accounts to the new so-called state bank and suspend all other private banking licenses. I heard from someone inside SABRIC that these were the threats made already to banks. Talks in the 'corridors' are that they might leave one bank, but limit operations, which is Standard Bank.

After the banks dumped Oakbay "frank and meaningful" discussions were held between the govt and the banks.

 

[Vrotappel]

LOL government make laws, banks follow them, government haz hissy fit.