for subscribers

Guptas exit fails to soothe state capture fears

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Cape Town - The resignation of the Guptas, who are alleged to having an undue influence on President Jacob Zuma, as Oakbay directors changes little with regard to fears about state capture, according to Bidvest Bank.

The Guptas' alleged business connection with and influence on Zuma has resulted in calls for Zuma's recall, as well as an investigation into the Guptas' business activities.

With increasing concerns about state capture in South Africa, the government is clearly facing a taxing time, Bidvest Bank said in a notice to clients on Monday.

"News was received last week that the Guptas had stepped down as directors from Oakbay Investments and Oakbay Resources following the banks’ decisions to give them notice. That followed on from KPMG also choosing to back away from the company along with others."

Oakbay Investments is entirely owned by members of the Gupta family. That company owns 80% of Johannesburg-listed Oakbay Resources and Energy [JSE:ORL].

Atul Gupta and Varun Gupta resigned their positions at Oakbay Resources on Friday after the big four banks - Standard Bank, FNB, Absa and Nedbank - as well as accounting firm KPMG and sponsor Sasfin Capital severed ties with the Gupta-owned firm.

Zuma’s son, Duduzane, who stepped down as a director of the company’s Shiva Uranium unit, said he is planning to divest from the businesses.

"It was hoped that the decision by the Guptas to step down as directors as well as leave the country would ease the pressure on the company. However, for many people that falls short of what was ultimately required to placate concerns about state capture which would have been for them to sell out as shareholders.

"So long as they remain shareholders, very little changes in the sense that if Oakbay is benefiting from state related or parastatal contracts that they will continue to be the main beneficiaries," Bidvest said.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
17.63
(-0.14)
ZAR/GBP
23.01
(-0.05)
ZAR/EUR
20.78
(-0.04)
ZAR/AUD
12.62
(-0.03)
ZAR/JPY
0.17
(-0.02)
Gold
2034.21
(+0.05)
Silver
28.28
(+0.09)
Platinum
961.50
(+0.38)
Brent Crude
44.55
(-1.53)
Palladium
2166.01
(+0.63)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 929 votes
It depends on how the funds are used.
74% - 6239 votes
No. We should have gotten the loan elsewhere.
15% - 1284 votes
Vote