GOVERNMENT PANDERS TO GUPTAS CRY FOR HELP

It happens everyday - banks unilaterally close customer accounts.  They do so for a myriad of reasons all predicated on exposure to one or more actual or perceived risks.  

In South Africa's highly regulated banking industry, banks are required to operate within narrowly defined parameters.  But, there is no legal obligation requiring banks to maintain customer relationships in perpetuity.  All that is required is reasonable notice of termination.  

Why then the cabinet's decision to "constructively engage" the banks on terminating of their banking relationship with the Guptas?  According to the Minister in the Presidency Jeff Radebe, the decision was taken to "deter future investors who may want to do business with South Africa".   The opposite is true:  foreign investors will not want to do business with South Africa knowing the government's proclivity to intrude and orchestrate banking relationships.  

The cabinet's decision to "constructively engage" on behalf of the Guptas sets a dangerous precedent.   It is time to stop pandering to them.  

Government interference with banker/client contractual relationships will not engender confidence in South Africa's otherwise reputable banking regime.