Johannesburg - A R3.5 million mortgage bond, secured by the Guptas from the Bank of Baroda in favour of one of former president Jacob Zuma’s wives was one of the factors that led to Standard Bank cutting business ties with the family.
This was revealed at the state capture inquiry on Monday after chairman Deputy Chief Justice Raymond Zondo summoned all commercial banks to appear before him and testify about the impact state capture had on their businesses.
The commission heard that the Guptas, through Westdawn Investments, gave surety to pay the mortgage bond for a trust in which one of Zuma’s wives was the sole trustee and her son the sole beneficiary.
These shocking details were given by Ian Sinton, Standard Bank’s former head of legal compliance, on Monday.
Sinton was testifying about the bank’s decision to give notice on April 13, 2016, to terminate the banking services for the Guptas after the bank gathered “sufficient evidence” that the Guptas might be involved in illegal financial activities.