EFF statement on cabinet interference into Zupta financial affairs

22 April 2016

The Economic Freedom Fighters notes that in its 13 February 2016 Meeting, the South African Cabinet resolved to officially intervene in business and private affairs of a family business which has a corrupt business relationship with Mr. Jacob Zuma.

The media statement issued on the 21st of April 2016 says, "Cabinet noted the actions by the four banks that gave notice to close the bank account of a company. Whilst Cabinet appreciate the terms and conditions of the banks, the acts may deter future potential investors who may want to do business in South Africa. Cabinet has endorsed that the Ministers of Finance, Labour and Mineral Resources should open a constructive engagement with the banks to find a lasting solution to this matter".

What this means is that the South African government has deployed its Ministers to go an resolved private business problems of the Gupta family, a family whom Mr. Zuma has confirmed are his friends, a family whose companies are partly owned by the Zuma family, a family who are embroiled in many scandalous activities, a family who finances Mr. Zuma's wife house and other necessities. The South African government is being reduced into a personal fiefdom where a president reduces institutions of the State and Cabinet Ministers into defending his personal and private interests.

On many occasions before, workers have been in many challenges, including in Marikana, and Government's intervention has been through sending police to kill workers. When former Mineral Resources Minister attempted to resolve a five month strike which has direct economic implications, he was publicly cautioned by the ruling party not to interfere in Labour disputes despite the reality that this affected thousands of workers.

Now that the private interests of Zuma family are directly affected, key cabinet ministers are rerouted to deal with private affairs of the Zupta phenomenon, which is a collision between a Gupta family business and Zuma's political power to paradoxically loot State contracts and tenders for self enrichment. This is despite the fact that financial regulatory and conduct bodies exist in South Africa to mediate relationships between banks and private bank account holders. The basis of such interventions is purely private and was over exaggerated by Gupta appointed minister of mineral resources Zwane who claimed the Gupta family creates more than 20 000 jobs during his response to the budget vote debates in parliament. Guptas do not create 20 000 jobs, and the low quality jobs that happened due to their business are largely discriminatory jobs as workers, particularly African workers, in Gupta workplaces are discriminated and treated as sub humans.

Furthermore, the existing legislation and rules that govern banks and other financial institutions places an obligation on them to disassociate from and report all forms of financial crimes and impropriety by their customers. If this is the basis upon which the banks disengaged with the Guptas, it should be welcomed and emphasis made that these banks must also disengage with other criminal organizations, aggressive tax avoiders who, like the Gupta family, shift billions of Rands into tax havens.

The EFF rejects cabinet's narrow intervention into private affairs of the Gupta family and instead calls for strengthening of laws that deal with financial crimes. All banks, audit firms, and other financial institutions must play a central role in combating all forms of financial crimes. The financial regulation and conduct authorities must also be empowered to decisively address disputes of such nature in order to avoid government and cabinet's abuse by conflicted individuals.

The EFF will write to cabinet and parliament to officially object on the decision to involve South African government on the Zupta phenomenon because if left unchecked, such will suggest that we are all party to a parasitic criminal syndicate, which is above the law. Zuptas, like many other corporations, are involved in massive financial crimes, and that is what government should be focusing on rather than what is happening now.

Issued by Mbuyiseni Quintin Ndlozi, National Spokesperson, EFF, 22 April 2016