FNB declined to meet with ministers over closure of Gupta accounts

Former FirstRand Group – which First National Bank (FNB) is a division of – chief executive officer (CEO) Johan Burger said the bank wanted the finance minister to be present at a meeting with an inter-ministerial committee to discuss the institution’s decision to close Gupta business accounts.

Burger was testifying at the commission of inquiry into state capture on Tuesday.

Burger said the bank had refused to meet with the committee, which was chaired by the former minister of mineral resources Mosebenzi Zwane, unless the finance minister was present.

The former FirstRand Group CEO said FNB had requested to know who would attend the meeting and what its agenda would be – a request which was not agreed to which led to the bank turning down the meeting.

The summoning of banks by the committee and the governing ANC to explain their decision to close the accounts of the Guptas was an unexpected first for Burger in the more than 30 years he had spent in the banking industry.

Burger said the bank had decided to close the Gupta business accounts – Tegeta, Islandsite, TNA Media and Sahara computers – due to reputational and business risks.

Burger repeated Standard Bank’s retired head of legal Ian Sinton’s testimony at the state capture inquiry on Monday that the banks had not colluded to close the accounts of the Guptas.

An ABSA representative testified after Burger on Tuesday.

Meanwhile, The EFF has criticised South Africa’s major banks, calling them opportunistic and hypocritical “in their testimony given to the state capture inquiry”.

On Monday, Sinton testified at the inquiry giving reasons leading to Standard Bank deciding to close the accounts of the Guptas.