S. African presidency distances itself from mineral resources minister over Gupta scandal

South Africa's presidency on Friday distanced itself from Minister of Mineral Resources Mosebenzi Zwane over his statement calling for a judicial inquiry into the move by South African banks to blacklist businesses owned by the Indian Gupta family.

Zwane said on Thursday that the inter-ministerial committee set up by the cabinet to probe why South Africa's banks blacklisted Gupta-owned businesses recommended that a judicial inquiry be set up.

Zwane, who heads the committee, said in a statement that the judicial inquiry should consider the current mandates of the Banking Tribunal and the Banking Ombudsman, consider the current Financial Intelligence Centre Act (FICA) and the Prevention of Combating of Corrupt Activities Act in relation to the banks' conduct, and re-consider South Africa's clearing bank provisions to allow for new banking licences to be issued.

Importantly, the inquiry should look into the establishment of a state bank of South Africa with the possible corporatization of the Post Bank being considered as an option, Zwane said.

He said President Jacob Zuma would have to approve these recommendations.

But the presidency said on Friday that Zwane issued the statement in his personal capacity and not on behalf of the task team or the cabinet.

Zwane does not speak on behalf of the cabinet and the contents of his statement do not reflect the position or views of the cabinet, the presidency or the government, presidential spokesperson Bongani Ngqulunga said.

"The unfortunate contents of the statement and the inconvenience and confusion caused by the issuing thereof are deeply regretted," the spokesperson said.

The presidency wishes to assure the public, the banking sector as well as domestic and international investors of government's unwavering commitment to the letter and spirit of the country's Constitution as well as in the sound fiscal and economic fundamentals that underpin our economy, he said.

The wealthy Gupta family, which allegedly keeps close ties with Zuma, has been under fire for influencing the president in the appointment of cabinet ministers. But the Guptas have denied the accusation, saying the have fallen victim to political struggle in the country.

The exposure prompted South African commercial banks to terminate their business relationships with Gupta-owned businesses in April.

The cabinet later set up the inter-ministerial committee to look into the banks' decision. Endit