SACP sceptical of Gupta family plan to sell SA shares

2016-08-28 21:24
Ajay and Atul Gupta. (Muntu Vilakazi, City Press)

Ajay and Atul Gupta. (Muntu Vilakazi, City Press)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town – The South African Communist Party (SACP) has expressed scepticism at news of the Gupta family’s stated intention of selling off their South African interests.

The SACP said on Sunday there was a strong possibility the Guptas simply intended to sell their South African interests to themselves through their foreign-based investment venture capital operations.

The Gupta family on Saturday said they would sell their South African shareholdings by the end of the year.

The family said their exit from South Africa businesses would benefit existing employees and lead to further growth.

"We believe that this decision is in the best interests of our business, the country and our colleagues," the family said.

In a statement on Sunday, following a three-day meeting, the SACP questioned the timing of the decision.

Great deal of scepticism

"Frankly, we treat this announcement with a great deal of scepticism. It comes at a time when Gupta companies are reportedly under increasing scrutiny from the Reserve Bank, treasury and the Financial Intelligence Centre," the Tripartite Alliance partner said.

The SACP expressed doubt there would be much appetite for buying the shares, given “the over-valued and under-traded nature of Gupta-linked JSE interests”.

They called on the Financial Intelligence Centre to ensure that if any sales were effected, the Gupta family or close relatives were not the beneficial owners of the sale.

"We trust that the Reserve Bank, before approving any sale from a resident to a non-resident, will ensure that there is full legal compliance with capital export requirements," the SACP said.

The party also called for all financial regulatory entities to ensure that money was retained in South Africa in a blocked account so that any potential penalties and liabilities were covered “should further information emerge in regard to the wrecking-ball activities of the Guptas and their associates".

Read more on:    gupta family

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.