* Barclays (LON:BARC) Africa says no to ministerial meeting on Oakbay
* Nedbank says will meet team but won't discuss clients
* CGIC says providing insurance for Sahara, part of Oakbay (Adds Barclays Africa, Nedbank)
By Tiisetso Motsoeneng
JOHANNESBURG, May 11 (Reuters) - South African lender Barclays Africa BGAJ.J said on Wednesday it had turned down a meeting with a ministerial team appointed to resolve a stand-off between banks and Oakbay Investments, a company at the centre of allegations of political influence.
Several companies, including all four major banks in South Africa, have severed links with Oakbay Investments following allegations that the Gupta family, its owners, used their friendship with President Jacob Zuma to win political favours. NL5N17O29K
Last month, the government appointed a team of ministers including Mines Minister Mosebenzi Zwane to help patch up relations between the company and the banks.
"We confirm receipt of an invitation to a meeting from the office of the Minister of Mineral Resources on behalf of the inter-ministerial committee announced by Cabinet," Barclays Africa said. "We have respectfully declined on account of client confidentiality."
Although the Guptas' relationship with Zuma has been a source of controversy for years, it burst into the open last month when senior figures said the family had exerted undue sway, including offering cabinet positions
Zuma has acknowledged the Guptas are his friends, but denies anything improper. The Guptas, whose wide range of business interests include media and mining, have denied the allegations and say they are pawns in a plot to oust Zuma.
Nedbank, a unit of Anglo-South African insurer Old Mutual OML.L , said it would approach any meeting with government constructively, but would not discuss banking relationships of any client.
The government team, which also includes Finance Minister Pravin Gordan and Labour Minister Mildred Oliphant, is due to report back on its progress at this week's cabinet meeting, Minister in the Presidency Jeff Radebe told Reuters.
Oakbay Investments' Chief Executive Officer Nazeem Howa has said the company would not be able to pay its workers from June 7 if it cannot restore banking relations.
Other companies that have severed ties with the companies in recent months include the local unit of KPMG KPMG.UL and fleet management company Eqstra EQSJ.J .
Mutual and Federal said it has not withdrawn insurance cover on a Sahara Group of companies, subsidiary of Oakbay Investments.
Reuters reported on Tuesday that Mutual & Federal, through its trade credit insurance arm Credit Guarantee Insurance Corporation of Africa (CGIC), had withdrawn its cover for Oakbay Investments, citing a company document. said in a statement it was providing insurance for the Sahara Group, which is part of the Oakbay group. CGIC does not do business with any other company linked to Oakbay, it said.
"Credit Guarantee has not withdrawn its trade credit insurance cover on the Sahara Group of companies (subsidiaries of Oakbay)," Theo Reddi, acting chief executive officer of CGIC said in a statement.
Oakbay Investments did not immediately respond to requests for comment.