Johannesburg - The SACP has weighed in on the attempted grab for UBank by the Guptas, vowing to help the National Union of Mineworkers (NUM) fight off the controversial family’s advances.
Independent Media revealed yesterday how senior executives of the Gupta-owned Oakbay Investments had been hard at work wooing NUM leadership to persuade them to sell at least part of the union’s 50 percent stake in UBank.
UBank is controlled by Teba Trust, which is in turn jointly controlled by NUM and the Chamber of Mines. The Chamber of Mines said both trustees would have to agree jointly to any sale of a stake in UBank.
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“Work has been under way in UBank and with the support of Teba Trust to find ways to help recapitalise the bank,” the chamber said yesterday.
In a statement issued yesterday, NUM reiterated its rejection of Oakbay’s advances. “When approached by Oakbay chief executive Nazeem Howa , NUM general secretary David Sipunzi alluded to the fact that UBank is not for sale.
"The general secretary stated to them that they have a right like many bidders before them to approach Teba Trust on the matter,” NUM said.
UBank management also confirmed, while it was busy looking for ways to recapitalise the cash-strapped lender, an outright sale was not currently on the cards.
Chief executive Luthando Vutula said it needed to find a “suitable” and “strategic” partner to inject the much-needed cash.
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“UBank’s capital-raising exercise and process is being handled by our transaction advisers. Various companies have shown interest in the transaction. Some have not been successful,” he added.
The lender needs R1 billion for a full recapitalisation, but in the short term needs a R152 million cash injection just to hold on to its banking licence. The Teba Trustees will hold a make-or-break meeting on Tuesday to chart a way forward for the bank.
The SACP has led a long-standing campaign for transformation in the financial sector.
SACP spokesman Alex Mashilo said it was for this reason that the workers’ bank had to be defended.
“The decision by NUM not to dispose of workers’ ownership of UBank is very important. It stands opposed to apparent internal machinations to sell off workers’ property to the bourgeoisie to enrich themselves,” he said.