Zuma’s controversial friends the Guptas and his son step down from business roles
Members of a family with ties to South African President Jacob Zuma resigned from management positions in the companies they control following a wave of controversy surrounding the Guptas’ alleged influence over the country’s leader.
The resignations of Atul Gupta and Varun Gupta from Oakbay Resources and Energy came after financial-services groups including accounting firm KPMG dropped the company and other Gupta-controlled businesses as clients as questions about the family’s influence over Zuma mounted.
Sasfin Holdings has ceased being Oakbay’s broker, while Barclays Africa Group’s Absa unit and FirstRand’s First National Bank stopped providing banking services to all businesses of Oakbay Investments, the holding group. Zuma’s son, Duduzane, stepped down as a director of the company’s Shiva Uranium unit, Oakbay said.
The company contacted Zuma and the ministers of finance, labour, mines “to express deep disappointment over the decisions of our banking partners and to make it very clear that livelihoods are at risk if we are unable to restore these important banking relationships”, co-director Nazeem Howa said in letter to staff which was obtained by Bloomberg.
The scrutiny has been considerable over the course of the last few months ... It doesn’t look like this is going to dissipate soon
The decision comes as pressure is mounting on Zuma to resign as president following a court ruling over his response to a graft ombudsman report and after allegations by senior officials of the ruling African National Congress that the wealthy Indian family offered them cabinet posts in exchange for business concessions. The claims have spurred probes by the party and the Public Protector. The Guptas deny any wrongdoing.