Nedbank CEO, Mike Brown says the bank communicated with representatives of the Gupta-linked companies before terminating their relationship.
He says Oakbay officials tried to give reasons as to why the accounts should not be closed; however the bank still felt it necessary to go ahead with the closure.
Brown is appearing before the state capture commission of inquiry currently under way in Parktown Johannesburg.
Like the executives of other banks who have testified, Brown has cited the reputational risk caused by escalating media reports about the Gupta family as a reason for the bank’s move.
He says: “In respect of the perceptions, we take a lot of time to try and understand where the underlying news flow comes from and therefore as a consequence how reliable that is likely to be. There’s clearly an enormous amount on social media that would have some weight but a lot less weight than a statement coming out of the ministry of finance, or the resignation of auditors or sponsoring brokers.”