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Sasbo supports banks’ decision to sever ties with Guptas

We are not concerned about employment security – Finance Union.

JOHANNESBURG – The Finance Union Sasbo has come out in support of banks’ decision to terminate their relationships with Oakbay Investments and the Guptas.

The union represents around 70 000 employees in the banking and finance sector.

“South African Banks are highly regulated and apart from the Banks expecting to know their clients, they are also governed by various types of legislation including the Financial Intelligence Centre Act (Fica),” the union’s general secretary Joe Kokela said in a statement.

“Banks are subject to the supervision of the SA Reserve Bank and as service providers they can be held accountable by the National Consumer Commission in respect of any complaint. There rests an onus on all financial institutions to report any suspicious activities committed by an account holder and to investigate these activities,” Kokela said.

FNB and Absa are some of the financial institutions that have severed ties with Oakbay and its related companies. Due to client confidentiality, no reasons were provided for the decision at the time.

Kokela said any transgression increases the onus on the financial institution “exponentially” to the extent that the institution could be held responsible and be exposed to liability.

“The key factor is that banking is a voluntary and private relationship between the Bank and its clients, therefore the Banks have a right to terminate any relationship should a possible contravention be foreseen.”

Kokela said since most local banks depend on the foreign market to fund their treasury and other countries also have strict regulatory requirements, no South African Bank can afford to transgress international regulation that could affect their banking license or sustainability.

“Sasbo is comfortable that the Banks made the right decision without being influenced.”

Kokela said the issue around the Oakbay Investment employees being unable to receive their salaries is not factual since Oakbay has banking accounts with an international bank operating in South Africa.

“As a result of the Banks’ actions, Sasbo as a trade union is therefore not concerned about the employment security of the Oakbay employees,” Kokela said.

In April, Oakbay expressed its disappointment with a decision by Independent Media not to run Oakbay adverts in its newspapers. The adverts were addressed to the CEOs of Absa, Nedbank, Standard Bank and FNB and urged them to “restore banking services” to the company.

“The livelihood of Oakbay’s 7 500 employees and dependents are in your hands,” the ad read.

Oakbay Investments have said that it would not be able to pay its workers from June 7 if it cannot restore banking relations, Reuters reported earlier. 

Moneyweb approached Oakbay for comment. It will be added as soon as it is received.

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Soon everybody in Luthuli House along with every ANC counselor in the country, will be dependent on an “Indian Bank” to process their salaries…..until that bank is closed down by the IMF.

But then again – in all fairness to the Guptas – a bank is the only business that has a license from the state to commit fraud.

When I take my wheat to the silo for safekeeping, I get a certificate stating the grade and amount, and the silo-operator may not lend my wheat to anybody without committing the crime of embezzlement.
Now when I sell my wheat and take the money to the bank for safe keeping, the bank not only has the right to lend my money to another person but in fact lends the total amount of my money to 10 people (fractional reserve banking).
How can this action be illegal for one business (the silo-operator) and at the same time a legal, standard procedure for another(the bank)?

The answer is – because we prefer it that way, we condone the legalized fraud and participate in embezzlement, because we are the ones accessing the loan!

Since when was wheat legal tender?
Bad example and comparison…..

Oeps – I stepped on your toe there! sorry….

With all due respect , your argument is stupid.

Firstly its the agreement that you have with your wheat keeper that prohibits him from lending it out. Just like your agreement with the bank allows them to lend out the money. Its your choice who you bank with , so if not happy go find a bank that will keep your money in the bank and not use it….. good luck with that. I suppose you will want interest on your deposit though. How do you think a bank will generate profits to pay you interest if they just leave all deposits in their vault !

If Oakbay is proud enough to place advertisements for banking facilities, why are they not making public the reasons why the banks have discontinued banking facilities.

Sweetpea-that is a brainless illogical remark. You miss the point. Start over.

Well done to the union to have come out in full support of the banks in doing the honourable thing. International banks like HSBC have had to pay panelties of $1.92 billion for violating the US law on money laundering and suspicious activity. Were the ANC senior members not embarrased to approach the banks, requesting them to change their decisions. What message were they send out to the citizens of this country, that there are 2 laws, one for us and one for you.

ANC members, senior or otherwise, are incapable of showing embarrassment. Why should they – they never do anything wrong!

End of comments.

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