Banks not in support of 'mafia state'; says Zuma is giving them headache.

South Africa’s  main banking group said interference in the government by private groups is threatening the nation’s constitutional democracy, adding to a chorus of criticism over allegations that businessmen linked to President Jacob Zuma influenced cabinet appointments.

The Banking Association of South Africa, which includes all major banks in the country, was commenting on an uproar over Deputy Finance Minister Mcebisi Jonas’s claim last week that he was offered a promotion to the Treasury’s top spot by members of the Gupta family, who are friends of Zuma’s and in business with his son. 

South Africans have described this sort of influence as “state capture.”

“We must be clear that ‘state and corporate capture’ is an euphemism for blatant corruption,” banking association Managing Director Cas Coovadia said Wednesday in an e-mailed statement. 

“We remain deeply concerned and disturbed that the worrisome trend of undue and illegitimate influence and interference in the state continues to represent a clear and present danger and threat to the stability of our constitutional democracy.”

The controversy has weakened Gordhan’s bid to turnaround a weakening economy that’s set to grow less than 1% this year and is threatened by a credit-rating downgrade. Standard & Poor’s has a negative outlook on its BBB-rating, one level above junk. Moody’s Investors Service rates South Africa’s debt one level higher.

Jonas’s claims triggered several senior members of the ruling African National Congress to make similar allegations about the Gupta family’s attempts to unduly influence the state. They prompted ANC Secretary-General Gwede Mantashe to warn that South Africa is slipping into a “mafia state.” 

The Gupta family has denied the accusations.

The allegations over the Guptas have fuelled disgruntlement with Zuma that peaked in December when he replaced his respected finance minister, Nhlanhla Nene, with a little-known lawmaker, sparking a selloff of the rand and the nation’s bonds. Four days later, Zuma reappointed Pravin Gordhan to the post which he had held from 2009 to 2014, after coming under pressure from ANC and business leaders.

The rand declined as much as 16% against the dollar in the weeks after Zuma fired Nene on Dec. 9. As of 1 p.m. in Johannesburg on Wednesday, it was 4.6% weaker than the day before the finance minister was replaced.