Guptas dropped by all major South African banks
In an update on the state of its relationships with South African banks, Gupta-owned Oakbay Resources says that all major banks in the country have dropped them – but they continue to get support from foreign banks in the country.
In a SENS update on the matter, the group clarified that reports of FNB dropping the company only apply to the holding company, Oakbay Investments.
Meanwhile, Absa’s decision to drop Oakbay Resources was made in December 2015, but only communicated in April 2016, the group said.
The group added that the last local bank supporting them – which remained unnamed in the update – had given notice on Thursday (7 April) that it, too, would be terminating its relationship with the company.
“As of yesterday, (Oakbay Resource’s) remaining local banking service provider has given notice regarding the termination of their banking services on June 6, 2016,” it said.
This brings the total list of finance groups turning against the company to five: FNB, Absa, KPMG, Sasfin and the unnamed SA finance group.
According to Oakbay, “despite the cessation of the provision of services by the major local banks, the Group continues to be serviced by a major Asian bank with a presence in South Africa.”
The bank, however, made a specific request not to be named.
“The terminations will not impact the operations of the Group and the Company is confident that the remaining banking relationship is sufficient to fully service the operational requirements of the Group.”.
On Friday, Oakbay Resources announced that its non-executive chairman, Atul Gupta, and its chief executive officer, Varun Gupta, had resigned with immediate effect, in the wake of what it called a political attack against the family.
Additionally, President Jacob Zuma’s son – Duduzane Zuma – resigned as a Non-Executive Director of Shiva Uranium, a major subsidiary of the company, and from all of his positions at Oakbay Investments, the company owned by the Gupta family.
More on the Guptas
Another major SA bank closes its doors to Gupta company
Absa cuts ties with Gupta’s Oakbay company: report
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