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Court cuts politics out of Gordhan-Gupta battle

Publish date: 29 March 2017
Issue Number: 4192
Diary: Legalbrief Today
Category: Banking

On the first day of the battle that pits Finance Minister Pravin Gordhan against the Gupta family over the closure of their Oakbay company and other accounts, the Gauteng High Court (Pretoria) disposed swiftly of the extraneous politics to move on to the key legal issue: whether the government is permitted to intervene in matters between banks and clients. A Business Day report notes Gordhan approached the court in 2016 for a declaratory order stating that he could not intervene, after being pressured to do so by the Cabinet and Oakbay executives. His move was widely interpreted as an attempt to put an end to the lobbying and shine a light on the Guptas’ financial affairs. However, by the time of yesterday’s hearing, all parties agreed that Gordhan did not have the power to intervene. The court, therefore, attempted to persuade the parties to reach a settlement. But Jeremy Gauntlett SC, for Gordhan, told the court although parties agreed the Minister could not intervene, there was no agreement on a declarator and therefore there could be no settlement. Gauntlett described the Guptas as being ‘like Alice in Wonderland’, according to a Mail & Guardian report. Referring to the Guptas’ ‘contradictory’ statements, Gauntlett said the family on the one hand denied any dispute with Gordhan, but on the other hand did not want the court to make a pronouncement on the matter. Gauntlett, acting for Gordhan, said that ‘all parties here agree on the Minister of Finance’s powers. The (Guptas) say what is before court is not a contested issue. They say we are right, that is the answer, but don’t do it (don’t give judgment on the matter),’ Gauntlett argued. Gordhan wants the court to pronounce on his powers in law to intervene in a bank/client relationship.

Full City Press report

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