Wednesday , January 20 2021

SARB felt heat on Gupta's accounts closed

South African Reserve Bank Governor Sarb Leset Kaganago explained in detail the degree of pressure that was brought to the central bank after the country's banks closed Guptaz's bank accounts three years ago. File: IOL
Johannesburg – The Governor of the South African Reserve Bank (SARB), Leset Kgangagogo, explained in detail the volume of pressure that was brought to the central bank after the country's banks closed Guptaz's bank accounts three years ago.

Kganyago told global leaders at the Stavros Niarhos Foundation that the attacks were for reasons other than price stability.

He said the bank was under pressure to force banks to reconsider prisons, as they are almost impossible for the family to carry out its operations.

"We began to feel pressure to force the banks to service these bills, contrary to the law. In addition, we came under pressure to allow this family to obtain a bank license by purchasing a small bank." We even faced the threat that the licensing of banks will be taken away from the SARB together, "said Knjajavo.

"We used our independence to respect the law against dirty cash flows, and that made us enemies."

Moody's Investor Services said on Monday that it continues to see SARB's independence in implementing its policy, despite ANC talks to nationalize the bank.

SARB's guarantee of independence is Article 224 of the constitution, which explicitly protects the bank from interference by the government.

In August 2016, the Financial Intelligence Center marked 72 suspicious transactions related to Gupta bank accounts totaling $ 6.8 billion.

The infamous Guptis, who are accused of having unimpeded access to state resources under former President Jacob Zuma, have closed bank accounts of their companies from Standard Bank, Nedbank, FNB and Absa in 2016.

Standard Bank Consort, Jan Sinton, in September, told an inquiry into the seizure of the state that former Minister of Mineral Resources Mosebenzi Zwane and Labor Minister Mildred Olifat pressed Standard Bank to keep Guptas' accounts.

The FNB and Absa refused to meet with government officials on the issue, while Nedbank testified that Zwanei threatened to withdraw the company's banking license if he refused to change his decision.

Kganyago also turned out to be critical of the central bank after he put VBS Mutual Bank back under curtailment last year after being exposed to a bank fraud of nearly R2bn.

"We were accused of undermining black perfection and protecting the interests of white capitalists. Do you know that saying" patriotism is the last refuge of enemies "? Well, in South Africa, if you really need to hide somewhere, it's not in patriotism , but in racist politics. "

S & P Global Ratings announced last week that it has no doubts about the plans of the ANC for nationalization of the SARB.

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