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Court says state can’t intervene on bank clients

Court says Gordhan’s application unnecessary.

South Africa’s High Court said the government can’t intervene in the relationships between banks and their clients and dismissed an application from former Finance Minister Pravin Gordhan for a declaratory order on the matter.

“We hold the strong view that this application was clearly unnecessary,” Deputy Judge President Aubrey Ledwaba said in the ruling in Pretoria on Friday. “To grant the minister the declaratory relief would allow the judiciary to stray into the exercise of executive functions.”

The nation’s four biggest banks last year closed accounts linked to the Gupta family, who are friends of President Jacob Zuma and in business with one of his sons, citing reputation risk and regulatory concerns. Gordhan was pressured by the family to intervene and in October asked the court to order that he has no authority to stop banks from closing accounts of Gupta-controlled Oakbay Investments. All four banks including Standard Bank Group and Barclays Africa Group joined him in his application.

“The minister of finance accepts and respects today’s High Court judgment on Oakbay and will not appeal it,” National Treasury said in an emailed statement on Friday. Zuma replaced Gordhan as finance minister with Malusi Gigaba on March 31.

The minister was ordered to bear some of the costs of those involved in the case while Gupta-linked company Sahara Computers  was ordered to pay some of the application’s costs.

South Africa’s banks index, which declined as much as 0.8%, rose to trade 0.2%  higher as of 1:09pm in Johannesburg.

© 2017 Bloomberg 

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It probably is premature and unnecessary at this stage.
Let the Gupta crowd self apply to the court for a ruling against the banks that closed their accounts or for an order that instructs the ministry of Finance (the Treasury) to intervene in the steps taken by the banks.
Let the Gupta crowd take on the process on their own time and by funding such legal process themselves.
Then it becomes a pertinent matter for the courts to consider and to rule upon.
To ask the court to give a blanket ruling that the ministry of finance should under no circumstances act or intervene between banks and private companies / clients is vexatious and an exercise in futility.
It can only be considered on a case by case basis dependent on the particular facts of each case and the effect of the actions on the parties, the economy, the general public and in terms of legislation.

Turns our Mines minister Zwane’s “Inter-ministerial committee” that even included Jimmy Mayeni in its meeting with Nedbank, was clearly none other than bullying tactics by the state against the private sector, on behalf of Guptas.
Mayeni, according to Nedbank, was dragged along in his capacity as a so-called ADVISER to one of Zupta stooges – a minister. LOL how desperate these people are…..

The only reason for Manyi attending was so that he could try and bully his previous employer, was never happy that they asked him to resign from the bank

just maybe the South Africa’s High Court must become the next government, they’ve been making the decisions for govment for the past 2 years already, proof of govment legal incompetence. Luckily the cost are shared and its not all to the taxpayers expense again.

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