Guptas allege political scheme to damage them

Ajay, left, and Atul Gupta pictured in this file image.

Ajay, left, and Atul Gupta pictured in this file image.

Published Jan 20, 2017

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Johannesburg - The controversial Gupta

brothers said in court documents on Friday that they were the

victims of a political campaign to damage their business

interests, the latest stage in a long-running controversy over

their ties to President Jacob Zuma.

The Gupta family filed an affidavit on Friday in response to

one issued by Finance Minister Pravin Gordhan in October linking

them and their firm to suspicious transactions.

Gordhan has said 6.8 billion rand ($501 million) in payments

made by Indian-born Ajay, Atul and Rajesh Gupta, and companies

they control and other individuals with the same surname, had

been reported to authorities as suspicious since 2012.

He has asked the High Court in Pretoria for a declaratory

judgment that he cannot interfere with decisions by South

Africa's major banks to cut their ties with businesses owned by

the Gupta brothers. Gordhan said they had repeatedly asked him

to intervene to have their accounts reopened.

Between December 2015 and April 2016, FirstRand,

Standard Bank, Nedbank and Barclays Africa

terminated the accounts of companies controlled by the

Gupta family's Oakbay Investments.

FirstRand said in an affidavit filed in December that

suspicions of money-laundering lay behind its decision. At the

time, Barclays and Nedbank said they would file legal

applications similar to FirstRand's.

In their affidavit, the Gupta family said the minister's

application was "riddled with factual and legal errors", and

that there was not enough information about the transactions to

conclude they were suspicious.

"The timing of the minister's application supports the

Oakbay Group's suspicions that the application is politically

motivated and is part of the minister's ongoing plan to diminish

the Oakbay Group," the affidavit reads.

Gordhan was not available to comment.

"We cannot comment on this because it a legal matter that is

before the courts," said Treasury spokeswoman Yolisa Tyantsi.

Allegations that the Gupta brothers wielded undue influence

over Zuma were investigated last year by the Public Protector, a

constitutionally mandated anti-corruption watchdog. It stopped

short of reaching conclusive findings but recommended that the

president order a judicial inquiry, which has yet to happen.

Zuma has denied granting inappropriate influence to the

brothers, and they have denied seeking it.

Reuters

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