Judge President Dunstan Mlambo will meet the legal counsel of the different respondents, including 14 Gupta-owned firms, Treasury, SARB governor, the FIC director, the registrar of Banks, and SA’s big four banks.
What Gordhan’s team is arguing is that “nothing in the Constitution, the Public Finance Management Act, the Banks Act or any other legislation, regulation or common law authority authorises ministerial intervention.
The Reserve Bank itself confirms that the same applies to it: there is no legal provision which entitles the Reserve Bank to interfere in the relationship between banks and their clients.
The Registrar of Banks similarly confirms the same in respect of himself.
A fortiori, then, the same should apply to the Minister of Finance, because if the primary regulator has no power of intervention then the political head overseeing the entire financial sector will have even less legal authority to do so.
It wants the court to agree on this. However, while the Guptas agree with this, they want Gordhan to pay costs and/or drop the case, because they believe it is a moot point.