Guptas and Zuma resign from Oakbay business
JSE-listed Oakbay Resources and Energy Limited has announced that its non-executive chairman, Atul Gupta, and its chief executive officer, Varun Gupta, have resigned with immediate effect.
Additionally, President Jacob Zuma’s son – Duduzane Zuma – has resigned as a Non-Executive Director of Shiva Uranium, a major subsidiary of the company. In a separate statement, Zuma notified that he has resigned from all of his positions at Oakbay Investments, the company owned by the Gupta family
Oakbay Resources is a major subsidiary of Oakbay Investments – the main investment channel for the Gupta family in South Africa.
The group said that it made the decision following “a sustained political attack on the company, and the concern that the jobs and livelihoods of nearly one thousand employees would be at immediate risk as a result of the outgoing director’s association with the company.”
“Accordingly, the outgoing directors are of the view that it would be in the best interests of the company, its shareholders and employees for them to step down with immediate effect.”
The Gupta family has come under increased scrutiny in recent months, following allegations that the family was attempting to capture the state through business relationships with the president – via his son.
Read: Fresh Gupta scandal hits Eskom
In February, deputy finance minister Mcebisi Jonas blew the lid on the saga by claiming that the Gupta family had met with him, promising him the role of finance minister, if he fell in line with the family’s business goals.
This allegedly took place before President Zuma unexpectedly fired former finance minister Nhlanhla Nene, sending the South African economy into a tailspin, wiping as much as R500 billion from the GDP.
Subsequent to the allegations, a number of South African finance groups, including KPMG, Absa, FNB and Sasfin, have cut all ties to the family’s businesses, including Oakbay Resources.
The family has denied all allegations, claiming that they are victim to political in-fighting within the ANC.
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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