Zuma stays defiant on Gupta banks action
Cape Town - Government cannot sit by and watch banks close people’s accounts “willy nilly”, said President Jacob Zuma on Wednesday in Parliament.
He was responding to questions from MPs when he was asked to elaborate on an inter-ministerial commission which looked into the closure of the bank accounts of Oakbay Investments – a company owned by the Gupta family.
A defiant Zuma said the fact that South Africa’s four big banks acted “simultaneously” could suggest there had been collusion.
“To any ordinary person that is not an ordinary act. It suggests there is something. They (the banks) can’t act together in the same way. It gives a feeling that something is going on here. Now if you are a government you have to intervene in many things if the image of the country is put into problems.” (Sic)
In April this year, Jeff Radebe, minister in the presidency responsible for planning and monitoring said in a cabinet statement that three ministers - Finance Minister Pravin Gordhan, Mineral Resources Minister Mosebenzi Zwane and Labour Minister Mildred Oliphant - would meet with Oakbay, following the termination of its relationship with South Africa’s four big banks.
Radebe’s announcement followed after FNB, Absa, Standard Bank and Nedbank had notified Oakbay earlier this year they would no longer provide banking services to Oakbay or its subsidiaries, while listing sponsor Sasfin Capital and auditing firm KPMG also cut ties with the company.
In September, Zwane also sparked controversy when he claimed that Cabinet would launch a judicial commission of inquiry into the banks amid the closing of the Gupta’s bank accounts.
But the Presidency quickly denied Zwane’s claim and said it was not reflective of Cabinet’s position.
On 2 November, former Public Protector Thuli Madonsela said in her state capture report that Cabinet’s attempt to intervene in the matter of local banks closing Gupta-owned company accounts may indicate a conflict of interest for Zuma, who has strong ties with the family.
The President, however, was unapologetic about Cabinet’s intervention, saying it’s government’s responsibility to make sure institutions, including banks, abide by the law.
South Africans politicising ratings move
The problem with South Africans is that they’re “politicising” the decision that ratings agencies are about to make on the country’s sovereign credit rating, said President Zuma in Parliament on Wednesday.
Zuma was responding to a question from Steve Swart, ACDP MP, who asked the President what measures have been taken to ensure South Africa will not get a credit downgrade towards year-end.
“We tend to politicise the gradings,” the President said. “We pick and choose what we think ratings agencies will talk about.”
Zuma listed a number of countries that had been downgraded earlier this year.
“There was France in September, the UK in June, Turkey in September to junk status, Russia, Brazil and China,” Zuma said. “I’m sure some of you here have heard for the first time that all these countries – big and small – have been downgraded.
“But here we make a big issue of it even though the ratings agencies haven’t even arrived yet.”
Zuma reassured MPs that government has been “hard at work” to stave off a ratings downgrade.
He mentioned a number of initiatives government has been busy with over the past months:
- R1.4bn has been committed by the private sector to invest in small enterprises;
- companies have pledged to offer internships to 1m young work seekers;
- there has been considerable investment in the Independent Power Producers Programme in renewables that has led to 2 500MW of energy generation; and
- some state-owned enteprises have improved their governance.
In addition, government has budgeted over R987bn for infrastructure development over the medium-term expenditure framework, Zuma said.
Asked by the DA’s David Maynier, what his views are that a credit rating agency be set up which would be more sympathetic to the needs of Brics nations, Zuma said “there’s nothing wrong with that”.
“There are views and there are views on the economy,” Zuma said. “There’s not one view. Western countries or whatever part of the world – they all have assumptions. [The] Brics (countries) look at the world in a particular way and do their own approach to ratings.”
Stop comparing SA with other countries
Cape Town – “Stop comparing South Africa with other similar-sized countries.”
That was the message from President Jacob Zuma on Wednesday in when he responded to questions in the National Assembly.
The DA’s Geordin Hill-Lewis asked Zuma what initiatives his government was taking to ensure South Africa improves its rankings on the world stage.
Zuma responded, saying South Africa’s economic problems could largely be attributed to the fact that the majority of its citizens had been excluded from skills development and quality education in the past.
“Those are the problems we are faced with now. In other countries everybody was at school. Here the majority was excluded – those who could have contributed massively to the economy.”
In a follow-up question, the DA’s Dean McPherson asked Zuma how government could be trusted with diplomatic, trade and security issues when foreign direct investment declined by “74% year-on-year”.
“Well, the honourable members have different views on matters,” Zuma said.
“The challenges of today are based on yesterday. This country did not educate its majority. The economy was run wrongly. We are dealing with our history as well. That’s why we have difficulties that other countries don’t face. If there’s time I can tell you about all that,” Zuma said.
Lies? It's all democracy
Lies? No, it's democracy, President Zuma told Parliament on Wednesday.
Zuma was answering questions in the National Assembly when he decided to explain the concept of democracy to MPs.
He was asked what efforts he was making to assure investors that South Africa had a stable political climate.
He said he always made it clear to them that South Africa was a democratic country and that people were free to express themselves.
"And at times, people mistake that as a volatile situation."
He was often asked by people outside the country about what was happening in Parliament, he said, and he explained to them that it was democracy at work.
"We have democracy where people can stand and talk. It is the manner in which we handle our democracy that seems to look like there is a volatile situation. It's democracy, that's how we want it," he said.
He said South Africans were outspoken and "we don't keep quiet".
"That people can get up, say what they want, use insults, tell lies. That's democracy," he told MPs.
Doom for Zwane
Wednesday was the last question-and-answer session for Zuma in the National Assembly for the year.
MPs were in a jovial mood as the president fielded jokes on his memorising the government's nine-point plan.
"Where is that one that likes the nine-point plan?" Zuma said at one point, looking for DA MP David Maynier.
Zuma famous giggle was heard in House when Maynier, inspired by recent reports about a pastor who believes in the healing powers of a pesticide, suggested a dose for mining minister Mosebenzi Zwane.
"If there is one minister who must be sprayed with Doom, it is Minister Zwane," Maynier said.
He was speaking in reference to the president's assertion that Zwane had been reprimanded for writing a press release that was not approved by Cabinet on the closure of Oakbay accounts and that the minister had apologised.
"That matter is now closed," Zuma said.
