Finance minister Pravin Gordhan recently slammed claims by the Gupta family that he was masterminding a conspiracy to shut down its businesses in South Africa.

This formed part of a legal case launched by Gordhan to prevent himself from interfering with the Gupta family’s business with South African banks.

As part of the court application, Gordhan listed a Financial Intelligence Centre report detailing how the Gupta’s businesses made R6.8 billion in “suspicious and unusual transactions”.

President Jacob Zuma joined the debate, arguing that the national treasury is frustrating the ANC’s economic transformation agenda and failing to provide enough funds so that ministers can complete projects.

Speaking on Business Day TV, Sasfin Securities Deputy Chairman David Shapiro said he is not certain what will happen in the war between Gordhan, Zuma, and the Guptas.

“It looks like Gordhan is going to be replaced just after the budget speech,” said Shapiro.

He said the Gupta family appears to have a second wind, and that Zuma looks strong at the moment.

This may lead to Zuma replacing Gordhan, capturing the Treasury, and gaining power over the country’s finances.

“This is not good for South Africa. Not good at all,” said Shapiro.

While Gordhan is fighting to protect the Treasury and expose questionable dealings, Shapiro said it is in vain.

Shapiro said few organisations are bemoaning the situation, but the larger voice – the ANC-led government – do not care.

“No matter how much we speak about it, no matter how much we write about it, it just carries on.”

Shapiro said it is a sad situation for South Africa.

“We are going to get the cabinet Zuma wants, which ensures his future earnings are safe and his family will be looked after forever” he said.

Government grants debacle

Another debacle in South Africa relates to it social grants payment system, where the government is not prepared for its scheduled handover.

Cash Paymaster Services, which is part of listed company Net1, currently handles the payment of 17 million social grants in the country.

The South African Social Security Agency (Sassa) was set to take over payments from March, but it is not prepared for the transition.

Post Office CEO Mark Barnes said it makes sense for the Post Office to form part of the social grants network, with a presence across the country and an established financial system.

Shapiro agreed, but said the government is not too concerned about the smooth payment of grants.

“I cannot understand the administration of this country that no contract has been put in place, and that there is no urgency to do it,” he said.

Giulietta Talevi, host of The Week That Was on Business Day TV, said the amaBhungane Centre for Investigative Journalism detailed links between the BEE partners in Cash Paymaster Services and people connected to Minister of Social Development Bathabile Dlamini.

She said this may be one of the reasons why the delays were taking place.

“Every contract in South Africa has someone at the other end who is going to benefit. Government doesn’t do business without some individual or group of individuals benefitting,” said Shapiro.

“There is no benefit for the country. That is the whole culture of this ANC government. This is a feeding scheme for the elite. It is not BEE.”

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