THE FLIGHT OF MONEY
Leaked e-mails show that Canadian firm Bombardier was negotiating with the Guptas about the possible sale of a second plane to them even after corruption allegations had been widely publicised
The Gupta jet registered as ZS-OAK faces being impounded as the Saxonwold family close to beleaguered President Jacob Zuma appears to have run out of money to make scheduled repayments.
The Financial Mail has reliably learnt that the Canadian government’s export credit agency, which provided a soft loan for 80% of the finance required for the jet, has instituted legal action against the Guptas for defaulting on their payments.
The agency, Export Development Canada (EDC), promotes the growth of Canadian businesses abroad by providing finance to international customers who buy products from that country.
Documents contained in the Gupta e-mail leaks show that by October 14, when the next US$1.4M payment for the aircraft fell due, the Guptas still owed $28.3m to EDC.
Sources in the aviation industry told the Financial Mail that EDC had in November grounded the aircraft at Lanseria airport for 48 hours “due to nonpayment. It would appear that a bank (unknown to us) provided the guarantee of funds and the
EDC released the aircraft”. This was confirmed by another source.
Flight records for ZS-OAK show that since it departed from Lanseria, the aircraft travelled mostly between India and Dubai, where the Guptas have property and business interests. But on December 13 it flew from Dubai to Zurich, where it remained for six days before taking a 36-minute hop to Euroairport Basel Mulhouse Freiburg in France on Tuesday evening.
Asked this week if the Guptas have defaulted on their loan, EDC spokesman Phil Taylor confirmed that the Canadian lender has cancelled the finance agreement.
“EDC monitored the performance of the transaction, as it would for all of its counterparties,” Taylor says. “Consistent with EDC’S underwriting principles and policies, we exercised our contractual rights and the transaction was terminated.”
He declined to comment further.
However, the Financial Mail understands that the Guptas are currently embroiled in a legal dispute with EDC, which apparently wants to seize the jet to settle the outstanding debt.
The Gupta family had not responded to emailed questions by the time of going to print.
The Gupta e-mail leaks contain several revelations that raise uncomfortable questions about the business dealings of both Canadian aircraft and train manufacturer Bombardier and EDC with the Saxonwold family.
They show that in 2015, despite being aware of the political risks attached to the Gupta family, EDC funded $41m towards the purchase price of the Gupta family’s now infamous Bombardier Global 6000, registered as ZS-OAK. The aircraft was used to fly cabinet ministers and parastatal bosses who furthered the Guptas’ business interests around the world, including to Mumbai and Dubai, where several were put up in luxury hotels.