Johannesburg - Oakbay Resources and Energy yesterday confirmed that First National Bank (FNB) had become the second bank to cancel its business accounts after Absa cut ties with the company earlier this week.
This was the latest in a series of backlashes by corporate South Africa against Oakbay Resources after allegations of “state capture” by the controversial Gupta family, and their alleged influence on the business of the government through their close ties to President Jacob Zuma and his family.
Read: Bankers, auditors drop Gupta-linked firms
Oakbay Resources director Nazeem Howa challenged the company’s detractors, calling them “the purveyors of the numerous false allegations”, and said they should provide evidence of wrongdoing against the company.
“We challenge the purveyors of the numerous false allegations made against us in recent months to provide any evidence of wrongdoing. It is time to put up, or shut up,” Howa said.
Howa said it would approach FNB chief executive Jacques Celliers to demand answers for the closing of the Oakbay Resources accounts.
But he said Oakbay Resources was already busy moving its accounts to “a more enlightened institution”.
No reason given
“Oakbay has received no reason whatsoever justifying FNB’s actions. We find the timing of FNB’s decision staggering, given Oakbay’s accounts are in excellent financial health and we have been a loyal and profitable customer for many years,” Howa said.
Howa said Oakbay had invested more than R10 billion in South Africa and employed more than 4 500 people.
He also said the deal to acquire Optimum Coal Mine, which will supply Eskom with 5 percent of its coal, would double the staff compliment and that those jobs would be jeopardised by these latest developments.
Howa further said the Gupta family detractors were talking about state capture when only 1 percent of the family’s business came from the government.
Oakbay Resources is an investment vehicle in mining and exploration business owned by the Gupta family, whose vast business interests range from mining, print and broadcast media to information technology.
Last week auditing firm KPMG resigned as Oakbay Resources auditors with immediate effect after 15 years, citing “risk of association”, while banking partner Sasfin Capital gave the firm notice of their intention to terminate services effective from June 1, saying it was in line with an internally driven strategic review.
Howa, who earlier in the day spoke at The New Age business breakfast, also said Oakbay did not believe that Mark Pamensky sitting on the Oakbay and Eskom boards, constituted a conflict of interest, nor that it was unusual.
“When there is a discussion about Oakbay at Eskom, I can swear from our side that (Pamensky) recuses himself immediately,” Howa said. He also defended the Gupta relationship with the president’s son, Duduzane Zuma, who is a director at 11 firms they own.
ANA