Gordhan sees no need for bank probe

Cape Town - Finance Minister Pravin Gordhan said his ministry sees no need for a judicial inquiry into banking oversight bodies being considered by the cabinet, after lenders cut ties to the Guptas, who are friends of President Jacob Zuma.

The country’s courts offer recourse to companies unhappy with banks, Gordhan said at an event on Thursday in Cape Town.

Last week, the presidency repudiated Mineral Resources Minister Mosebenzi Zwane after he said that the cabinet had decided to authorise the probe.

Zwane’s comments came amid increasing tension between Zuma’s government and the Treasury and the central bank.

Zuma has dismissed Gordhan’s request to fire the nation’s tax chief for insubordination and delayed his demands for the appointment of a new board at the state-owned airline.

Gordhan is under investigation by the police’s Hawks unit for setting up an allegedly illicit surveillance unit when he led the tax agency.

Gordhan said on Thursday that he wasn’t above the law and would answer questions from the Hawks, but didn’t need to be “dragged” to their offices. He was being subjected to disproportional treatment by the police, the minister said. “People who steal millions of rands are getting away with it,” he said.

Gordhan serves as a minister at the pleasure of Zuma, who has the discretion to change his cabinet, he said.

BLOOMBERG