Cabinet concerned banks’ action against Guptas could deter investors

21 April 2016 - 15:31 By Linda Ensor

Cabinet is concerned that the action of the major banks in severing relationships with Gupta-associated family businesses could deter investors from investing in the country.Minister of Performance Monitoring and Evaluation Jeff Radebe said at a post cabinet media briefing on Thursday that cabinet had asked Finance Minister Pravin Gordhan‚ Labour Minister Mildred Oliphant and Mineral Resources Minister Mosebenzi Zwane to discuss the matter with the banks. Mr Radebe was questioned whether this decision by cabinet did not constitute interference by the state in the decisions that banks have taken on the basis of their risk assessments and prudential banking. He said this was not interference as the ministers had been asked to engage with the banks to understand what their reasons were for their decision. He stressed that the three ministers would meet the banks in an information gathering exercise.The minister was grilled by journalists about the appropriateness of the cabinet decision in the light of the investigation by the African National Congress into state capture and the allegations that President Jacob Zuma has close relationships with members of the Gupta family.TMG Digital/BDlive

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