Mogomotsi Magome and Theto Mahlakoana
TRUSTEES of the cash-strapped Ubank are in a race against time to raise funds in a bid to stave off a potential takeover by the Guptas.
Independent Media understands that a crucial meeting of the bank’s owners, Teba Trust, will be convened on Tuesday to finalise plans to recapitalise in line with a Reserve Bank directive.
Teba Trust is administered jointly by the Chamber of Mines of SA and the National Union of Mineworkers (NUM).
Independent Media disclosed yesterday how executives of the Gupta-owned Oakbay Investments have been lobbying NUM leaders to back their move to buy Ubank.
Their efforts included a R1 million “donation” to the union to cover costs for its central committee meeting, the first time Oakbay had given the NUM money.
The bank’s management said yesterday it needed R1 billion to fund its growth plan and recapitalisation. However, in the short term, it needs R152m to keep its licence.
The chamber said that both trustees would have to jointly agree to any sale of a stake in Ubank. “Work has been under way in Ubank and with the support of Teba Trust to find ways to help recapitalise the bank,” it said yesterday.
Ubank chief executive Luthando Vutula said a “suitable” and “strategic” partner was needed to inject the much-needed cash.
“We are cognisant of the fact that a couple of months ago, Oakbay Investments confirmed in some national newspapers that they had unsuccessfully made an approach to buy Ubank. So far as Ubank’s executive and board are concerned, this position has not changed,” Vutula said.
Oakbay has not responded to questions, but its chief executive, Nazeem Howa, was quoted on various media platforms denying claims of an attempt to buy the bank.
He did, however, confirm that he recently phoned NUM general secretary David Sipunzi as disclosed by Independent Media yesterday. In its statement issued yesterday, NUM reiterated its rejection of Oakbay’s advances.