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
Star Wars stands to make a killing from new release

Star Wars stands to make a killing from new release

A new Star Wars movie, Rogue One: A Star Wars Story, is due to be released worldwide on December 16.

Former Safa president to consult legal team on Fifa ban

Former Safa president to consult legal team on Fifa ban

Kirsten Nematandani, banned for match-fixing, believes he was never given an opportunity to present his side of the story.

Zim allows citizens to use rand currency through cellphone service

Zim allows citizens to use rand currency through cellphone service

Zimbabwe adopts Econet rand wallet facility to help country's cash woes.

New Unisa chancellor Thabo Mbeki has African renaissance vision - advisor

New Unisa chancellor Thabo Mbeki has African renaissance vision - advisor

Somadoda Fikeni says he doesn't think Mbeki's controversial tenure and past decisions will impact negatively on institution.

Former MPs Willie Hofmeyer, Tony Leon recall Constitution signing 20 years on

Former MPs Willie Hofmeyer, Tony Leon recall Constitution signing 20 years on

In December 1996 the SA Constitution was signed into being and has been acclaimed as one of most progressive in the world.

BED's decision on math pass level has been misunderstood - Mary Metcalfe

BED's decision on math pass level has been misunderstood - Mary Metcalfe

BED decision applies only to learners who have passed all other subjects and will continue only with maths literacy.