South Africa finance minister says worried about Gupta family

South African Finance Minister Malusi Gigaba said on Friday he was worried about the influence of a wealthy family accused of using its friendship with President Jacob Zuma to secure contracts with state-owned companies.

Gigaba’s unusually strong comments came the day after power utility Eskom suspended its chief financial officer Anoj Singh pending an investigation into allegations that he granted preferential treatment to firms linked to the Gupta family, business friends of Zuma.

Gigaba is close to Zuma and seen as an ally. He took office after Zuma fired highly respected finance minister Pravin Gordhan in a March cabinet reshuffle.

Singh, the Gupta family and Zuma have denied any wrongdoing.

“Like all South Africans, I am very worried about them and I think we need to establish fact from allegation,” Gigaba told the Cape Talk radio station when asked about a slew of leaked emails that have detailed the Gupta family’s business dealings.

“The allegations are quite damaging to the investor perceptions, as well as ratings agencies, of the governance of our state-owned companies,” Gigaba said.

He also said he supported the establishment of a commission of judicial enquiry, called for last year by South Africa’s top anti-graft watchdog, to investigate the mounting allegations swirling around the family.

A number of international companies have been drawn into the widening scandals, including Germany’s SAP and Software AG, and global consultancy McKinsey.

Reporting by Ed Stoddard; Editing by James Macharia and Mark Heinrich

Related Content

Tito Mboweni’s tips for economic growth in SA – is it more talk and task teams?

As the business minds ready for the World Economic Forum Africa in Cape Town next week the finance minister of the continent’s most advanced economy revealed Treasury’s plan how to revive growth

Op-Ed: On corruption: How South Africa’s new leader can replace bold promises with bold action

While holding corrupt leaders accountable sends a powerful message, if Ramaphosa’s long-term strategy does not include investments in innovations that lead to prosperity creation, he’s effectively snipping the buds while the roots remain intact.

#StateCaptureInquiry: The Zuma must go campaign was part of the conspiracy

Zuma sounded a little bitter as he hinted that he was going to retaliate and told of the pain suffered by his family.

“I have been vilified over the years!” Zuma and his comrade conspiracy theories open day one of #StateCaptureInquiry

Former President Jacob Zuma made it clear his comrades were out to get him when he began giving evidence to the Zondo Commission in Johannesburg.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

Quite frankly, be candid… What African mining bosses and the minister call each other behind closed doors

For years it has been daggers drawn between government and mine owners in disputes over mining regulations that the latter fear are driving away investors from starting new mines.

Droppa CEO on adapting and innovating to the harsh realities of COVID-19

Covid-19 has left many businesses with the stark reality of closing down or adapting. One company that is doing the latter is Droppa. Its CEO Khathu Mufamadi joins CNBC Africa for more.

The harsh taste of COVID-19 on Famous Brands

Famous Brands, the owner of several of South Africa’s best loved restaurant chains has scrapped its dividend for the second half of its financial year to preserve its balance sheet. The owner of Steers and Tashas warned that the COVID-19 pandemic has had a significant negative impact on the group. Famous Brands CEO, Darren Hele joins CNBC Africa for more.

African Bank CEO on how the bank is cushioning its customers from the effects of COVID-19

The Covid-19 lock-down has put pressure on individuals and businesses’ finances like never before. But what can be done to ease the pressure? Basani Maluleke, CEO, African Bank joins CNBC Africa for more.

Trending Now

Elon Musk and SpaceX try to make history, plus everything else you missed: CNBC After Hours

CNBC.com’s MacKenzie Sigalos brings you the day’s top business news headlines, and what to watch as the coronavirus pandemic continues to keep most of America on lockdown. On today’s show, CNBC’s Michael Sheetz explains what’s at stake in t

South Africa downgrades lockdown rules, sending 8 million back to work

Key Points South Africa to downgrade lockdown measures to level three on June 1. This means a full reopening...

Is SA’s mining industry too deep in the COVID-19 crisis?

The Covid-19 pandemic has far-reaching economic ramifications on the productivity and profits of many industries without the exception of the mining industry. For more than a century mining was a flourishing industry in South Africa. In 2019 it contributed close to R361 billion or 8.1 per cent to SA’s GDP and over R91 billion to fixed investment. It employed 454,861 people and paid R24.3 billion in taxes. Since early March, the mining industry’s average share price has dropped 10 per cent and individual companies have lost 30 to 50 per cent of their market value. Is mining too deep in the Covid-19 crisis? How can the mining industry pave the way to total recovery and become the sunrise industry it wants to be?...

How Richard Branson Is Trying To Save His Virgin Empire

Sir Richard Branson has cut a figure as a brash and rebellious impresario who took on big businesses with his larger-than-life personality, charm, and sheer guts. The Virgin Atlantic airline Branson started and grew from an industry underdog to a maj
- Advertisement -