The High Court in Pretoria has dismissed the former finance minister’s Pravin Gordhan's application for a declaratory order which argued that Gordhan did not have the power to intervene in the relationship between the banks and the Guptas.
Gordhan approached the court asking for this order, saying the Gupta family was putting him under pressure to intervene.
As part of this application, it also emerged that the Financial Intelligence Center had flagged a suspicious transaction of R6.8 billion six point eight billion by the Guptas.
EWN reporter Clement Manyathela says the judge made it clear that there is no statute that empowers any member of the national executive such as the minister to intervene in private disputes between the bank and its clients.
The judge also said that because the Guptas and the then finance minister agreed that he was not legally obliged to interfere, this court application by Gordhan was unnecessary.
Editor of the Financial Mail, Rob Rose says this case was significant as it had wider ramifications beyond just Pravin Gordhan and the Guptas.
It was significant. It told us about suspicious transactions, but it didn't say they were unnecessarily illegal. It raised a lot of questions.— Rob Rose, Financial Mail Editor
It has wider ramifications for how society understands what the Guptas are doing in our society.— Rob Rose, Financial Mail Editor
To hear more of this interview, listen below: