Why a Gupta is SA’s richest black man

THE revelations in this newspaper today will rile the many among us who believe South Africa has long since been sold to those who have secured seats at the political table through their proximity to President Jacob Zuma.

These revelations are contained in the 2016 Business Times Rich List, a definitive measure of how well the wealthiest South Africans have done for themselves this year. The list, compiled annually by Who Owns Whom and based on the value of disclosed directors’ holdings in JSE-listed companies for the year, highlights extremely disturbing trends.

While most on the list have seen their wealth drop — such as Christo Wiese, whose holdings shed R23.5-billion — the list is, sadly, still an ugly reminder that South Africa remains one of the most unequal countries in the world. And that gap continues to widen. The people on the list do not represent even 1% of our population, yet the top 10 names alone have combined wealth in excess R230-billion, according to their listed assets. This, while the majority of South Africans still live below the poverty line.

Chief among the disturbing trends is the evidence that black wealth is declining in South Africa. Close scrutiny of the list shows that of the top 200, 157 are white men. Even more depressing is the fact that only seven of the top 200 are women. There is only one black South African in the top 10, ranked seventh, and he happens to be a Gupta.

The past 12 months have been harsh ones for influential BEE pioneers such as mining magnate Patrice Motsepe and Saki Macozoma, who have dropped to 11 and 65, respectively, on the list.

But, while these trends should be cause for concern to all of us, it is the name of Atul Gupta that will remain etched on our minds after the businessman gate-crashed the top 10 — making him the richest black South African.

Atul, the eldest of the Gupta brothers — who are friends of Zuma — has become a symbol of how patronage is destroying our country.

He is responsible for turning the president’s children and other relatives into multimillionaires in just a few years.

Today Zuma’s son Duduzane, who joined the Gupta empire in the 2000s — first as an intern, before becoming their business partner — is among the richest 33-year-olds in South Africa.

Atul was the first of the Gupta brothers to arrive in South Africa, from the state of Uttar Pradesh, India, in 1993. His brothers, Rajesh and Ajay, followed and together they have built an empire consisting of assets in coal, gold and uranium mining. They own a newspaper, a 24-hour news channel and a game lodge.

Very little was known about the Gupta family before Zuma came to power in 2009. Today they wield undue influence and enjoy extraordinary privileges from the president.

There are even allegations that they appoint or have a say in who the president appoints to his cabinet.

The State of Capture report by former public protector Thuli Madonsela places the Gupta family, including Atul, at the centre of a predatory network of patronage, cronyism and the looting of state resources.

Atul’s debut in the top 10 of the Rich List as the richest black businessman in South Africa is more confirmation of what has long been reported — that the Gupta family’s proximity to Zuma has benefited them handsomely.

Another legacy of the Zuma presidency.