In an update on the state of its relationships with South African banks, Gupta-owned Oakbay\u00a0Resources says that all major banks in the country have dropped them – but they continue to get support from foreign banks in the country.<\/p>\n
In a SENS update<\/a> on the matter, the group clarified that reports of FNB dropping the company only apply to the holding company, Oakbay Investments.<\/p>\n Meanwhile, Absa’s decision to drop Oakbay Resources was made in December 2015, but only communicated in April 2016, the group said.<\/p>\n 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.<\/p>\n “As of yesterday, (Oakbay Resource\u2019s) remaining\u00a0local banking service provider has given notice regarding the termination of their\u00a0banking services on June 6, 2016,” it said.<\/strong><\/p>\n This brings the total list of finance groups turning against the company to five: FNB, Absa, KPMG, Sasfin and the unnamed SA finance group.<\/p>\n According to Oakbay,\u00a0“despite the cessation of the provision of services by the major local banks<\/strong>, the Group\u00a0continues to be serviced by a major Asian bank with a presence in South Africa.”<\/p>\n The bank, however, made a specific request not to be named.<\/p>\n “The terminations will not impact the operations of the Group and the\u00a0Company is confident that the remaining banking relationship is sufficient to fully\u00a0service the operational requirements of the Group.”.<\/p>\n On Friday,\u00a0Oakbay 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.<\/p>\n Additionally, President Jacob Zuma\u2019s son \u2013 Duduzane Zuma \u2013 resigned as a Non-Executive Director of Shiva Uranium, a major subsidiary of the company, and\u00a0from all of his positions at Oakbay Investments, the company owned by the Gupta family.<\/p>\n Another major SA bank closes its doors to Gupta company<\/a><\/strong><\/p>\n Absa cuts ties with Gupta\u2019s Oakbay company: report<\/a><\/strong><\/p>\nMore on the Guptas<\/h3>\n