Banks caught in the crossfire in battle over SA’s financial system
Claims that banks are impeding transformation and other criticism risk eroding confidence in the crucial financial services industry
New allegations by President Jacob Zuma’s supporters that SA’s biggest banks are frustrating efforts to address racial inequality signal an escalation of a battle for control of the nation’s financial system, including the Treasury. Protestors from the ANC Youth League (ANCYL) invaded an Absa branch on January 26. Then, on Monday, the ANC’s top leaders said the four biggest lenders could not be allowed to continue dominating the industry. These banks have refused to do business with companies linked to the Gupta family, who are in business with Zuma’s son. The same day, Finance Minister Pravin Gordhan accused the Guptas of trying to undermine his ministry. He commented in court papers filed to rebut the family’s call for him to force banks to re-open accounts of businesses they control that the lenders closed last year because of allegedly suspicious transactions. The Guptas say there is no evidence to justify the closure. "Partly this is related to various factions within the ANC t...
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