Guptas deny fleeing probe

A corporate sign at the entrance to Oakbay Investments' offices in Sandton. File picture: Siphiwe Sibeko

A corporate sign at the entrance to Oakbay Investments' offices in Sandton. File picture: Siphiwe Sibeko

Published Aug 29, 2016

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Johannesburg - The Gupta family’s Oakbay Investments has denied that their decision to sell off their shareholdings in South Africa was linked to an investigation instituted by the National Treasury.

The family announced on Saturday that shareholdings would be sold by year-end.

“As a family, we now believe that the time is right for us to exit our shareholding of the South African businesses, which we believe will benefit our existing employees and lead to further growth in the businesses,” said a statement released by Gupta family spokesman Gary Naidoo.

Speaking to SABC news this weekend, Oakbay Investments chief executive Nazeem Howa said any investigations would involve”management and directors” of the companies, not shareholders. He said the move had been made because of a lot of interest from international buyers.

The DA’s David Maynier on Sunday described the family as”like rats abandoning a sinking ship”. He said members of the Gupta family, and the businesses controlled by them, were the subject of multiple investigations, including an investigation by the Hawks into alleged corruption; an investigation by the Financial Intelligence Centre into alleged money laundering; an investigation by the South African Reserve Bank relating to the termination of business relationships with certain banks; and numerous investigations by the National Treasury into alleged corruption.

“We will not back down and will do everything to ensure that the various investigations being conducted into the Gupta family’s businesses are concluded and that the results of those investigations are made public,” Maynier said.

Meanwhile the SACP called on the Financial Intelligence Centre to ensure that if any sales of the shareholdings were effected, the Gupta family itself or close relatives were not the beneficial owners of the sale.

“Ostensibly this is for the benefit of South Africa and to save local jobs. Frankly, we treat this announcement with a great deal of scepticism. It comes at a time when Gupta companies are reportedly under increasing scrutiny from the Reserve Bank, Treasury, and Financial Intelligence Centre,” the SACP said.

“We also believe our financial regulatory entities should ensure money is retained in South Africa in a blocked account so any potential penalties and liabilities are covered should further information emerge in regard to the wrecking-ball activities of the Guptas and their associates,” the SACP said.

The Mercury

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