The ANC has described Mr Zwane’s actions as “appalling” and “outrageous” because his statement sent the markets into an unnecessary tailspin, with investors getting anxious the government wanted to undermine the independence of financial institutions.
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The Presidency quickly distanced itself from the statement, saying Zwane had not spoken on behalf of the government.
“It also shows how an individual Cabinet minister can use his position to serve private business interests, break policy coherence, and cause the confusions such as the presidency had to clarify regarding Zwane’s utterances.?” “The unfortunate contents of the (Zwane) statement and the inconvenience and confusion caused by the issuing thereof, are deeply regretted”.
On Thursday, Mineral Resources Minister Mosebenzi Zwane had said the inter-ministerial team, set up by the cabinet in April and led by him, had cabinet backing for its proposal to set up such an inquiry to consider legal action against the banks.
The presidency wishes to assure the public, the banking sector as well as domestic and global investors of government’s unwavering commitment to the letter and spirit of the country’s Constitution as well as in the sound fiscal and economic fundamentals that underpin our economy, he said.
The prominent business family is accused by the opposition of being behind Zuma’s abrupt sacking of former finance minister Nhlanhla Nene in December, a move that rattled investor confidence and triggered calls for the president’s resignation. But the Guptas have denied the accusation, saying the have fallen victim to political struggle in the country. A major South African asset manager said on Wednesday it would no longer lend to state firms because of the political uncertainty.
The statement from Zwane’s team said the banks that had closed Gupta-owned Oakbay Investments’ accounts were influenced by “innuendo and potentially reckless media statements”.
Gordhan said on Friday that Futuregrowth’s decision was a “very concerning development”.
Mashilo has condemned Zwane’s behaviour, saying that as a Cabinet minister he can not be advancing the private business interests of the Gupta’s.
Despite the challenges, the government remains committed to delivering quality infrastructure and related services in line with its commitment to ensuring a better life for all, the cabinet said.
Zuma acknowledged the Guptas are his friends, but denies anything improper.
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“We are positive that public entities have in place governance structures, mechanisms and processes to weather any storm”, Liphoko said, adding that SOEs are geared for economic growth and have a fundamental role to play in achieving the state’s developmental objectives.
