Another Bank closes Guptas’ accounts

Leading financial services companies in the country have ended their business ties with the controversial Guptas’s Oakbay Investments and its listed entity Oakbay Resources. The controversial family has come under attacks over the last few months for allegations ranging from ‘corruption to state capture’.

First National Bank joined ABSA, Sasfin and auditing firm, KPMG, in severing ties with the company. The family enjoys close relations with embattled South African President, Jacob Zuma.

KPMG ended its auditing services to Oakbay Resources on the 29 March and Sasfin Capital will withdraw as Oakbay Resources’s sponsor from 1 June 2016.

According to a statement from the JSE, its “listings requirements prescribe that companies must appoint a sponsor within 30 business days after the effective resignation of a sponsor. Listed companies need the services of an auditor when they issue their annual financial statement once per annum and in certain cases for interim and provisional financial statements. Companies must ensure that they have an appointed accredited auditor to perform these function at the relevant times.

“Oakbay has indicated that it is in the process of identifying a new auditor and sponsor”.