Pretoria - The Ministers of Labour, Finance and Mineral Resources are to engage the four banks who gave notice to close the bank account of Oakbay Investments, said Minister in the Presidency: Planning, Monitoring and Evaluation, Jeff Radebe, on Thursday.
Briefing reporters following Cabinet’s fortnightly meeting of 13 April 2016, Minister Radebe said Cabinet has noted the decision taken by the banks to close the company’s bank account.
“Cabinet has endorsed that the Ministers of Finance [Pravin Gordhan], Labour [Mildred Oliphant] and Mineral Resources [Mosebenzi Zwane] should open a constructive engagement with the banks to find a lasting solution to this matter,” said the Minister on Thursday.
While Cabinet appreciates the terms and conditions of the banks, the acts may deter future potential investors who may want to do business in South Africa, explained the Minister.
This comes as the country’s four major banks Absa, Standard Bank, First National Bank (FNB) and Nedbank earlier this month announced that they were severing ties with Oakbay Investments.
Responding to a question, Minister Radebe said the interaction between government and the bank is not an investigation.
“No this is not interference with the banks that is why the team of Ministers will be interacting with the banks to find out the facts on this matter. This is a normal task team that government makes from time to time if there’s an issue that has to be looked at,” explained the Minister.
The Minister emphasised that interaction between government and the private sector happens all the time. - SAnews.gov.za
