S Africa regulators query BoB on Gupta accounts

June 13: SouthAfricanregulatorsare seeking details from Bank of Baroda of accounts belonging to businesses owned by the Gupta family, intensifying scrutiny of the friends of President Jacob Zuma, according to a person close to the bank with knowledge of the situation.

The regulators are asking questions regarding deposits and bank accounts Gupta family businesses hold at BoB and are not implying the bank violated any rules in any way, the source said, declining to be identified because the information is not public. Bank of Baroda’sMumbai-basedspokesmandidn’t respond to an e-mail and two calls to his office seeking comment.

South Africa’s four biggest banks — StandardBankGroup,NedbankGroup, First National Bank and Barclays Africa Group — said this year they wouldstopdoingbusinesswiththeGuptas without saying why. KPMG stopped auditing Gupta-controlled businesses, ending a 15-year relationship.

The ruling African National Congressandthestategraftombudsmanin March started investigations into the Gupta family’s relationship with Zuma, after deputy finance minister McebisiJonassaidtheyhadofferedhimthe position of finance minister. The familydeniesapproachingJonasandsaysit willcooperatewithanyprobe.Zumaalso denies any wrongdoing.

The Johannesburg-based Sunday Times on Sunday reported that the South African Reserve Bank and the Financial Intelligence Centre, which is overseen by the South African Treasury, asked Bank of Baroda to provide documents detailing the Gupta family’s accounts. It cited a gover nment official it didn’t identify. Treasury and central bank officials declined to comment, the newspaper said.

“The South African Reserve Bank does not comment on specific matters of individuals or entities regarding investigations we may be involved in,” Bulelwa Boqwana, chief of staff at the Reserve Bank, said in an e-mailed response to questions.

The Gupta family companies are “happy to work directly with the Reserve Bank to resolve any questions,” Nazeem Howa, CEO of the Gupta family’s Oakbay Investments holding company, said in an e-mailed statement.

Since arriving in South Africa from India in 1994, the Gupta family has built a business empire spanning computers, engineering, media and mining. Zuma’s son Duduzane is a shareholder or director in several of their companies. Bloomberg