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:


This article first appeared on 702 : Cabinet proposes inquiry to probe banks and Gupta connection


Read More
Gauteng Ethics & Anti Corruption Indaba to nip corruption in the bud

Gauteng Ethics & Anti Corruption Indaba to nip corruption in the bud

The Midday Report's Ray White spoke to Gauteng Finance MEC, Barbara Creecy about dealing with corruption in the province.

Molefe due to testify before Parliament's Portfolio Committee

Molefe due to testify before Parliament's Portfolio Committee

The committee started Tuesday's Eskom inquiry by questioning the decision to suspend four senior executives back in March 2015.

Zim ministers snub Mugabe's cabinet meeting call

Zim ministers snub Mugabe's cabinet meeting call

Regional Co-Ordinator at Crisis Zimbabwe Coalition, Joy Mabenge says the keys to Mugabe's impeachment are turning very fast.

International funding helps MeerKAT telescope get up and running by April

International funding helps MeerKAT telescope get up and running by April

Countries like Germany and US have invested in the MeerKAT project, which is the best astronomical technology in Africa .

'Molefe doesn't fit the recruitment criterion into the SANDF'

'Molefe doesn't fit the recruitment criterion into the SANDF'

Sandu secretary, Pikkie Greef says the union will lay criminal charges against Molefe's illegal appointment in the SANDF.

I didn't believe that he was ever going to step down - JJ Cornish

I didn't believe that he was ever going to step down - JJ Cornish

EWN Africa Correspondent, JJ Cornish describes Mugabe's Sunday evening speech as a humiliating downturn for the Zim president.

Popular articles
Financially prepare yourself before the wedding bells

Financially prepare yourself before the wedding bells

Liberty Legal Marketing Specialist, Faeeza Khan talk us through a few financial pointers before getting hitched.

Oscar's family unhappy with producers as movie makes SA debut this weekend

Oscar's family unhappy with producers as movie makes SA debut this weekend

The movie stars Joburg-born actor Andreas Damm as Pistorius and Victoria Secret model Toni Garrn as Reeva Steenkamp.

Statement to remove LLB programme from SA universities is misleading: Max Price

Statement to remove LLB programme from SA universities is misleading: Max Price

Max Price says Council on Higher Education's announcement that UKZN, UCT and UL could lose their LLB accreditation is not right.

Is taking items from the hotel room stealing?

Is taking items from the hotel room stealing?

Tsogo Sun Cape regional manager explains which items are free to be taken home by guests and why.

WATCH: Innovative spray limits toilet flushes and saves water

WATCH: Innovative spray limits toilet flushes and saves water

Loo Me is a simple yet effective scented foam that takes the yuck out of "mellowing" toilets preventing multiple flushes.