Cape Town - Gupta mining firm Oakbay Resources and Energy on Tuesday released a statement via the JSE’s news service acknowledging that KPMG had resigned as auditors with immediate effect and that Sasfin Capital had given notice of their intention to terminate services to the company.
The Gupta family business has been at the centre of allegations of state capture of late. There is also an alleged connection between the family and their business ventures and the current crisis in government.
The Oakbay statement said: “The reason for KPMG’s resignation is solely based on their assessed association risk and KPMG have indicated that there is no audit reason for their resignation, whereas the termination of Sasfin’s services follows a recent decision by Sasfin to align the strategic objectives of Sasfin’s Corporate Finance Division more closely with that of the broader Sasfin group.”
On Monday, it was reported that three companies, including KPMG and Barclays Africa, had severed ties with Oakbay Resources due to concerns over their relationship with President Jacob Zuma.
Members of the Gupta family are perceived to wield some sort of control over Zuma and allegedly influence his Cabinet appointments so that their business interests benefit from government contracts.
Deputy Finance Minister Mcebisi Jonas last month dropped a political bomb by confirming reports that he had been offered the post of finance minister by the Gupta family, which they have since denied.
The ruling African National Congress has since issued a call to any members who might have been influenced by the Gupta family to report the incidents, saying it would investigate the allegations.
African News Agency