Business 17.2.2017 02:10 pm

Zwane feels vindicated by banks collusion probe

Minister of Mineral Affairs Mosebenzi Joseph Zwane at the Africa Mining Indaba on February 8, 2016 at the Cape Town International Convention Centre in Cape Town. Picture: Gallo Images

Minister of Mineral Affairs Mosebenzi Joseph Zwane at the Africa Mining Indaba on February 8, 2016 at the Cape Town International Convention Centre in Cape Town. Picture: Gallo Images

The Gupta-connected mining minister says the news shows he was right to call for a judicial inquiry into the banking sector.

Mineral Resources Minister Mosebenzi Zwane on Friday welcomed the decision by the Competition Commission to refer the matter of collusion by the banks to the Competition Tribunal for prosecution, saying this vindicated his call made last year for an inquiry into local banks.

This comes after the Commission on Wednesday referred a collusion case to the Tribunal for prosecution following the completion of an investigation into price-fixing and market allocation by 17 banks, including three big South African ones.

Last year, Zwane called for Cabinet to set up a judicial inquiry to probe the conduct of South Africa’s major banks and the reasons why they had closed the business accounts of the politically connected Gupta family.

However, government distanced itself from Zwane’s pronouncements and President Jacob Zuma reprimanded him for them.

On Friday, Zwane said: “We trust that this matter will be speedily resolved, as it also directly affects the mining sector.

“Most significantly, it has a direct impact on our objective of radically transforming the mining sector, and increasing ownership by black people.”

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The Commission said it had found that, from at least 2007, the banks had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US dollar to rand currency pair.

At the Tribunal, the matter has now entered a new phase in which the banks will have an opportunity to answer.

Meanwhile, Treasury has said this process must be allowed to run its course without fear, prejudice or undue influence.

Treasury said it viewed this matter in a very serious light and welcomed any steps taken against wrongdoing by any financial institutions.

– African News Agency (ANA)

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