Cabinet proposes inquiry to probe banks and Gupta connection

Cabinet announced it will ask President Jacob Zuma to establish a judicial inquiry to probe South Africa's banks specifically in relation to the Gupta family.

This was triggered after the country's big four banks withdrew services from the family and their business interests.

An inter-ministerial committee headed up by Mining Minister Mosebenzi Zwane, is proposing this inquiry look at banks and their actions against the Gupta's and a possible review of the legislation that governs the banking system.

Analyst at PNB Paribas, Nic Borain provides some insights into what this inquiry would mean for our financial services system.

I think it is outlandish and wrong in so many different ways.

Nic Borain, analyst PNB Paribus

He says it is an ill-informed proposal. It comes in the same week that Jessie Duarte, deputy secretary general of the African National Congress, hinted in an ANN7 interview that the banks being in private hands is a problem for them.

The Governor of the Reserve Bank, Lesetja Kganyago, hit back saying it is an independent institution and would not bow to political pressure.

Former Reserve Bank Governor Tito Mboweni came out strongly against the statements and actions of Duarte and Zwane.

Borain says Zwane's committee proposals makes him and South Africa look stupid.

And all this could not have come at a worse time, says Borain.

What happened with the firing of Nene and the appointment of Des van Rooyen is the global capital markets basically sold our bonds which means the bond yield spiked and sold our currency, which means the currency fell, and in response the banking shares fall.

Nic Borain, analyst PNB Paribus

Listen to the interview below:

Read More
Cycling to work may make you live longer - study

Cycling to work may make you live longer - study

A five-year study conducted in the UK shows cycling can reduce your risk of cancer and heart disease.

Paris attack triggers heightened security 48 hours before French elections

Paris attack triggers heightened security 48 hours before French elections

Just two days before the presidential elections raise concerns that these attacks could happen again.

Law allowing government to spy on citizens being challenged

Law allowing government to spy on citizens being challenged

The amaBhungane investigative journalism unit has launched a constitutional challenge to the Act on intercepting communication.

New evidence comes to light in Ipid's probe against top cop

New evidence comes to light in Ipid's probe against top cop

Ipid has revealed that evidence against Khomotso Phahlane shows a dubious pattern in car purchases.

SACP says it doesn't want SA turned into a playground by Gupta dynasty

SACP says it doesn't want SA turned into a playground by Gupta dynasty

The South African Communist Party is picketing outside Treasury in Tshwane to oppose state capture and corruption.

Tim Noakes not guilty of misconduct

Tim Noakes not guilty of misconduct

Noakes was accused of unprofessional conduct over a tweet he sent to a mother about weaning her baby on a low carb/high fat diet.

Popular articles
'We weren't going to quit', says Tim Noakes on not guilty verdict

'We weren't going to quit', says Tim Noakes on not guilty verdict

Prof Tim Noakes has been found not guilty by the Health Professions Council of South Africa on a charge of unprofessional conduct.

New evidence comes to light in Ipid's probe against top cop

New evidence comes to light in Ipid's probe against top cop

Ipid has revealed that evidence against Khomotso Phahlane shows a dubious pattern in car purchases.

Still no trace of missing Charlotte Nikoi, one month on

Still no trace of missing Charlotte Nikoi, one month on

The husband of missing Charlotte Nikoi has pleaded with public to come forward with any information regarding her whereabouts.

[Watch] All the Foreshore Freeway Project proposals

[Watch] All the Foreshore Freeway Project proposals

Take a look at the 6 six proposals that have been received by the City for the Foreshore freeway precinct.

We are in denial of people marching against us - Lindiwe Sisulu

We are in denial of people marching against us - Lindiwe Sisulu

Human Settlements Minister criticised the ANC for being passive at the memorial of late struggle stalwart Amhed Kathrada.

'Gigaba will have limited effect; the elephant in the room is the President'

'Gigaba will have limited effect; the elephant in the room is the President'

The Money Show’s Bruce Whitfield interviews Standard Bank Chief Economist Goolam Ballim.

How does El Nino affect Western Cape province?

How does El Nino affect Western Cape province?

Professor William Landman explains what El Nino is and its effects on the coming seasons in the Western Cape.

'Land restitution failed because Government is the biggest owner of land'

'Land restitution failed because Government is the biggest owner of land'

Bruce Whitfield interviews Finance Minister Malusi Gigaba's advisor Chris Malikane and Business Leadership SA's Bonang Mohale.