Absa has joined auditing firm, KPMG, in cutting ties with the Gupta’s listed company, Oakbay Resources & Energy, according to a report by the City Press.<\/p>\n
It leaves the R10 billion company without its auditors, its sponsor and its banker, the paper said.<\/p>\n
KPMG terminated its business relationship with the Gupta business empire earlier this week due to the political storm surrounding the family\u2019s friendship with President Jacob Zuma.<\/p>\n
KPMG was the auditor for all Gupta-owned and-controlled businesses and performed a variety of other services for the Guptas, who are allegedly at the heart of a ‘state capture’.<\/p>\n
City Press reported that JSE sponsor Sasfin has also served notice on Oakbay, while banking group Absa, has also confirmed it will no longer serve Oakbay.<\/p>\n
“In our view, the association risk is too great for us to continue,” KPMG chief executive Trevor Hoole reportedly told staff in an internal email.<\/p>\n
“There will clearly be financial and potentially other consequences to this, but we view them as justifiable.”<\/p>\n
Sasfin, which cut ties last month but will stay on until June 1, said it had taken a decision \u201cto align Sasfin Capital\u2019s corporate finance division\u2019s strategic objectives\u201d with the broader group.<\/p>\n
City Press noted that Oakbay is obliged to find a new JSE sponsor within 30 days and a new approved auditor, under the exchange’s rules.<\/p>\n
The full article is contained in the Sunday 3, April 2016 edition of the City Press.<\/em><\/p>\n KPMG cuts ties with Gupta family<\/a><\/strong><\/p>\n Fresh Gupta scandal hits Eskom<\/a><\/strong><\/p>\n \u2018Mobilise for a week of outrage\u2019 over Gupta crisis<\/a><\/strong><\/p>\nMore on the Gupta family<\/h3>\n