Guptas left stranded as last remaining bank closes their accounts: report
The Bank of Baroda’s South African branch has reportedly started closing accounts of companies controlled by the Gupta family, leaving the friends of president Jacob Zuma without banking facilities in the country, according to a report by Bloomberg.
Citing three sources familiar with the matter, Bloomberg reported that the Mumbai-based lender had begun winding down its relationship with Gupta-owned companies to ensure it is in compliance with banking rules.
Oakbay said in an emailed response to Bloomberg, that it wasn’t aware of the closures.
South Africa’s major banks have all closed their doors to the Gupta family, and their businesses, following allegations of state capture, which the family denies.
The banks followed the lead of auditing firm, KPMG and financial group Sasfin, who stepped away from the Guptas citing reputational concerns due to the allegations.
Bloomberg also reported that the Bank of China South African branch dropped the Guptas as clients in September, citing court documents filed by the family in January.
Last year, the Sunday Times reported that that the Reserve Bank requested that the Bank of Baroda release documents containing the accounts owned by the Gupta family
The paper noted that the Reserve Bank’s demands were part of a wider investigation into allegations that the controversial family may have illegally channeled money out of the country.
The Financial Intelligence Centre has also reportedly requested bank documents belonging to the Gupta family.
Read: ‘Flawed, abusive political conspiracy’ – why the Guptas think Gordhan’s court bid should be dropped
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