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
 US senator John McCain calls for more bipartisan politics

US senator John McCain calls for more bipartisan politics

US foreign policy expert Brookes Spector says Republican John McCain left his hospital bed to vote for more debate on Healthcare.

SA boy's HIV in remission for over 8 years after antiretroviral treatment ended

SA boy's HIV in remission for over 8 years after antiretroviral treatment ended

Prof Mark Cotton explains that the virus is there at a lower level but it is not replicating in the blood stream.

 PIC warns of another ratings downgrade

PIC warns of another ratings downgrade

Isaac Matshego, economist at Nedbank explains why the Public Investment Corporation predicts further downgrades in SA.

DA will call for early election if Zuma loses motion of no confidence

DA will call for early election if Zuma loses motion of no confidence

Mmusi Maimane says for South Africa to survive, change is needed.

"Internalised racial identities can be destructive and problematic"

"Internalised racial identities can be destructive and problematic"

Researcher Masana Ndinga-Kanga analyses the disruptions over the appointment of a black principal at Klipspruit West Secondary.

We are ready to strike indefinitely - Nehawu

We are ready to strike indefinitely - Nehawu

Nehawu spokesperson says the union will not back down from its strike unless all demands are met.

Popular articles
Sim swap scam: "They get the pin number and then clean out your account"

Sim swap scam: "They get the pin number and then clean out your account"

Consulting forensic scientist David Klatzow gives a detailed break down of the sim swap scam where criminals are hijacking phones.

Safety concerns at Newlands stadium

Safety concerns at Newlands stadium

They've been concerns around the safety of rugby fans attending rugby matches at Newlands Stadium.

Court grants CoCT eviction order at the Steen Villa complex

Court grants CoCT eviction order at the Steen Villa complex

About 22 households out of 700 have been refusing to pay rent for 12 months at the Steenvilla social housing development.

Interested in buying a franchise? Learn from this guy (owner of 100 KFCs)

Interested in buying a franchise? Learn from this guy (owner of 100 KFCs)

Sumitra Nydoo (on The Money Show) interviews KFC franchisee Kuben Naidoo.

International “one ring” phone scam can cost you big bucks

International “one ring” phone scam can cost you big bucks

My Broadband's Jan Vermeulen explains that as fast as the service providers block the numbers, new ones crop up.