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
Triple murder accused Henri van Breda pleads not guilty.

Triple murder accused Henri van Breda pleads not guilty.

Van Breda is accused of killing his parents and older brother at their home outside Stellenbosch in January 2015.

Far-right Macron and Le Pen top round one of French Presidential elections

Far-right Macron and Le Pen top round one of French Presidential elections

The second round of the elections will be held on 7 May.

Eskom board vows to stop Molefe's R30 million pension payout

Eskom board vows to stop Molefe's R30 million pension payout

Eskom Board's Khulani Qoma, says it welcomes Minister Brown's decision to review Molefe's pension amount.

"Both factions of the ANC are enemies of the working people"  Vavi

"Both factions of the ANC are enemies of the working people" Vavi

Zwelinzima Vavi says new 700 000 strong union movement Saftu won't support any factions of the ANC, vows to remove ANC government.

Task team appointed to assist families of the Bronkhorstspruit crash

Task team appointed to assist families of the Bronkhorstspruit crash

MEC Panyaza Lesufi and Minister Angie Motshekga attended meetings at the two schools attended by the children who died.

Zuma doesn't consider Ramaphosa as someone that should succeed him - analyst

Zuma doesn't consider Ramaphosa as someone that should succeed him - analyst

Both President Zuma and Deputy President Ramaphosa gave keynote addresses over the weekend further exposing divisions in the ANC.

Popular articles
So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

NSFAS to reopen 2017 applications

NSFAS to reopen 2017 applications

National Student Financial Aid Scheme says it will reopen 2017 loan applications after receiving requests for deadline extension.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?

5 ways the NSFAS funding model will change in 2017

5 ways the NSFAS funding model will change in 2017

The National Student Financial Aid Scheme (NSFAS) will pilot a new funding model in 2017. NSFAS chairperson Sizwe Nxasana explains.

5 reasons why the tourism industry is sceptical about the latest numbers

5 reasons why the tourism industry is sceptical about the latest numbers

The tourism industry is questioning the veracity of the surprisingly upbeat tourism figures and the timing of their release.