Guptas fail in bid to keep accounts open

THE public protector’s “State of Capture” report as well as the 45 suspicious transactions made by Guptalinked companies involving R4.2 billion prompted a judge to remark, “I could not help to wonder whether democracy and the rule of law had somehow been suspended.”

Judge Hans Fabricius, in dismissing the application by 20 Gupta-owned companies for the Bank of Baroda to keep their accounts open, said it was not for the bank to prove the allegations contained in the report were true or not.

But the accusations were relevant as they posed red flags and placed the bank at risk of contravening regulations.

The Bank of Baroda at length during its earlier argument before the Gauteng High Court, Pretoria, expressed its concerns regarding charges of unlawful conduct levelled against the Gupta family, their dealings and alleged close affiliation with President Jacob Zuma.

Judge Fabricius, in this regard said: “Could it be possible that the future, so bright in 1994, was now only history? Do the constitutional obligations imposed on the prosecuting authority still exist?”

He also questioned whether the various investigating bodies of the police service still remember their constitutional duty to combat and investigate crime.

“I cannot give an answer in these proceedings for obvious reasons, but the mere fact that the questions arise gravely concerns each and every one of us.”

The Gupta-owned companies suffered a major blow after their urgent bid to prevent the Bank of Baroda from closing their bank accounts at the end of this month was turned down.

The companies – including Oakbay Investments – said the Bank of Baroda was their only lifeline, as several of the major banks had already severed ties with them. It was said that it was unlikely that another bank would be found.

They asked the court for an interim order to keep their bank accounts open. That would be pending an application on December 6 in which they were going to ask the court for an interim interdict preventing the closure of their accounts.

This was to be followed by another application which was due to be heard sometime next year for a declaratory order preventing the bank giving them the boot.

The judge said he could not force the bank to extend its relationship with the family.

The companies were given three months notice before closing accounts.

This was extended to the end of this month. Allegations of state capture, claims of corruption and possible money laundering made it impossible for Baroda to be the family’s banker.