Oakbay still without a local bank, but talks ‘continuing’

GUPTA-owned Oakbay Investments has secured the services of an international bank but discussions with SA’s four major banks were continuing, the company said on Tuesday.

Oakbay said even though it was now using an international bank with operations in SA, it was concerned that the jobs of its employees, claimed to number 7,500, were still at “severe risk”.

In April, SA’s major banks cut ties with Oakbay, after allegations that the politically connected Gupta family was interfering in the running of the government and influencing Cabinet appointments. The family and Oakbay Investments have denied exerting improper influence.

The family has close ties with President Jacob Zuma, his family, and other ANC heavyweights.

Oakbay said this week its accounts had been closed early in June, despite numerous representations to the banks to reconsider.

“We have since started using an international bank with operations in SA. However, these are temporary arrangements and, in our current situation, is far from suitable for the complexities of our business,” the company said.

“As a result, all jobs at Oakbay remain at severe risk, and we implore the banks to reconsider their decisions in the interests of saving the livelihoods of our 7,500 staff members and their families.”

While Oakbay would not name the bank it is using, the Sunday Times reported earlier this month the Reserve Bank had demanded that Bank of Baroda release documents on deposits into accounts belonging to the Gupta family.

This reportedly formed part of a wider investigation into allegations that the Guptas may have been illegally channelling money out of the country.

It was reported that the Bank and the Financial Intelligence Centre had requested the Bank of Baroda to provide the documents.

Bank of Baroda operates in SA, and according to its website it offers banking products and services to industrial, commercial, retail and agricultural customers in India.

Mineral Resources Minister Mosebenzi Zwane, Labour Minister Mildred Oliphant and Finance Minister Pravin Gordhan have been tasked by the government to meet with the banks and resolve the impasse.

Oakbay said it understood that the discussions were still “ongoing”.

“We have not had any word that our current status with the banks will change,” the company said.