Banks stand firm on Gupta accounts
STAFF REPORTER
ETHEKWINI municipality will be launching a R35 million state-of-the-art furniture manufacturing hub in the KwaMashu area this Tuesday.
Municipal spokeswoman Tozi Mthethwa said the manufacturing facility would be unveiled in partnership with the office of the MEC of economic development, tourism and environmental affairs, Sihle Zikalala.
“Once fully operational, the facility will be the first of its kind in the eThekwini area,” said Mthethwa.
Called the Pink (Phoenix, Inanda, Ntuzuma, KwaMashu) Furniture Incubator, situated at the intersection of Malandela Road and Curnick Ndlovu Highway ( KwaMashu Highway), the idea is to promote small businesses, which play a major role in contributing to the economy, she said.
The incubator is a partnership between the municipality and furniture training and incubation sector trust, Furntech, and is aimed at taking infrastructure development and economic opportunities right to the doorstep of communities.
Space
“Small businesses will have access to workshop space, machinery, meeting rooms, showrooms, the internet and other facilities,” she said.
Mayor James Nxumalo said the facility was a milestone in manufacturing infrastructure in underdeveloped areas in eThekwini.
“We are proud of this achievement and the great partnership we have with Furntech. The furniture industry is labour intensive and can significantly contribute to reducing the level of unemployment, increase exports and contribute to the development of small and medium enterprises,” said Nxumalo.
Nxumalo said the furniture manufacturing industry remained an important sector in the country’s economy, as it could contribute towards job creation and poverty alleviation.
The centre will serve as a mechanism for the development of small, medium and micro-sized enterprises (SMMEs).
It will provide easily accessible services and equipment allowing products to be manufactured close to markets, reducing logistics and transport costs.
The Durban Chamber of Commerce and Industry was not available for comment at the time of publishing. BANKS have not changed their decision to close the accounts of the Gupta family businesses despite a cabinet statement yesterday announcing there had been a “constructive engagement” between three ministers and stakeholders in the industry.
The cabinet said it had received a report from the ministers of mineral resources, Mosebenzi Zwane, labour, Mildred Oliphant and finance, Pravin Gordhan, “following their constructive engagement with stakeholders in the banking industry”.
The outcome of the report would be communicated “in due course”, the cabinet said.
The three ministers were given the task in April of speaking to the banks after they decided to close the accounts of Gupta firm Oakbay Investments, citing risks to their reputations after allegations of interference by the Guptas in cabinet appointments – an exclusive prerogative of the president.
But initial attempts by Zwane to meet Absa were rebuffed and a meeting between him and Oliphant and Standard Bank was inconclusive.
Gordhan, who was out of the country when the cabinet made the decision to approach the banks, did not attend these meetings.
The Banking Association of SA supported the decision of its members, saying they had to comply with regulations relating to the Financial Intelligence Centre Act and money laundering.
The cabinet said in April it was concerned about potential job losses and the impact on would-be investors of the decision by the banks.
Oakbay’s auditing firm KPMG and sponsor Sasfin Capital have also severed ties, though it has since appointed SizweNtsalubaGobodo Inc in place of KPMG.
Gordhan was caught by surprise on talk radio station PowerFM last month when three Oakbay executives called in to quiz him about progress in talks with the banks.
Oakbay has said, though it has acquired the services of a foreign bank with operations in South Africa, it will struggle to continue operating and may have to retrench workers if its accounts are closed.
Its claim that 7 500 jobs are at risk has been disputed by Africa Check, which put the figure at closer to 4 900 excluding the New Age newspaper staff.
Atul and Varun Gupta and President Jacob Zuma’s son, Duduzane, resigned as directors of the firm in a bid to rescue its operations but the move had little impact.
Yesterday, Absa said in response to the cabinet statement it had not discussed its clients’ accounts with anyone, including representatives of the government, and would not do so.
Nedbank spokeswoman Esme Arendse said “We would have approached any meeting in a spirit of constructive engagement but would not discuss the banking relationships of any of our clients.”
Oakbay had not responded to requests for comment by the time of publication.