Former president Jacob Zuma lied to his Cabinet and unleashed the worst form of corruption in order to benefit the controversial Gupta family, their associates, and certain families, Public Enterprises Minister Pravin Gordhan said on Wednesday while testifying at the State capture commission of inquiry.

"The former president [Jacob Zuma] did lie...asking us to intervene in the relationship between the Guptas as clients and the banks, pushing the nuclear deal, and if one looks at State capture hypothesis, by allowing for particular types of boards in [State-owned enterprises] SOEs to be established, and putting in place particular ministers and others who might be cooperative in this venture as well," said Gordhan.

"If you look at all these.... it shows that there was a scheme at play designed by somebody. I hope that by the time you complete your work, you will tell us who is that somebody."

The minister further testified about the closing of the Gupta companies' bank accounts by South Africa's big four banks in 2016. 

He said an inter-ministerial task team was appointed by cabinet "in a spur of the moment" reaction, with former minerals resources minister Mosebenzi Zwane making himself the de facto chairperson. The committee initially included Gordhan and Labour Minister Mildred Oliphant, and later roped in then communications minister Faith Muthambi. 

Gordhan said he never attended any of the committee's meetings as he questioned its legality and mandate.

"I questioned the purpose and seeming aim of the task team with colleagues who were nominated to it. I explained the extensive global and domestic legal and regulatory framework that governs the financial sector, and cautioned that this framework needed to be understood and considered prior to any engagements with the banking institutions," Gordhan said.

"My concerns were not addressed by the members of the task team. I chose not to attend the meetings of the task team nor to participate in its actions, because I was of the view, confirmed in legal advice, that members of the executive cannot interfere in the contractual relationships between banks and their customers."

Zuma, said Gordhan, backed Zwane's quest to have the Gupta accounts at ABSA, FNB, Standard Bank and Nedbank re-opened.

"I do recall further events in Cabinet that I cannot publicly disclose, but which I have indicated to the commission should be investigated, and that indicated to me that Mr Zwane had the full backing and support of former President Zuma in pursuing the task team's objective of undermining and maligning the stance adopted by myself and National Treasury to the closure of the bank accounts. This included three reports from the task team, two of which were distributed in Cabinet."

ABSA was the first bank to shut both the personal and business accounts of the family. They cited reputational risk as well as possible contraventions of banking regulations. The other banks then followed suit. 

The Guptas then opened accounts at India's Bank of Baroda's South Africa's branch. However, the bank also severed ties with the Guptas in January this year after rumours surfaced accusing it's South African arm of laundering money on behalf of the family.

On allegations by the Economic Freedom Fighters (EFF) that his daughter Anisha is doing business with the State, and had in the past few weeks "went around closing all her bank accounts, to hide the hundreds of millions she received as payments from government", Gordhan said his daughter is not involved in any transactions with the State.

"Wrong information about my daughter was put in public yesterday. She is not involved in any malfeasance. The allegations about tenders is a lie...she does not have a bank account in Canada and neither do I. So I need to say this -- let's not play the man... play the ball. Come to me and I will answer...do not choose vulnerable targets, because, chairman, if this continues as it is, it means that witnesses will be scared of coming before you and testifying."

Gordhan finished giving his evidence on Wednesday. His appearance was marred by protests led by the EFF outside the commission's venue. The red berets returned for the third day unfazed and calling for Gordhan's head.