Oakbay using international bank to conduct business in SA

GUPTA-OWNED Oakbay Investments has started using an international bank to conduct its business in South Africa following the closing of its bank accounts by the country’s four major retail banks.

But it says the jobs of its 7 500 employees are still at “severe risk”.

The banks cut ties with Oakbay in April following 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 that its bank accounts were closed by varierating ous South African banking partners early this month‚ despite numerous representations for the banks to reconsider.

“We have since started using an international bank with operations in South Africa.

“However, these are temporary arrangements and, in our current situation, far from suitable for the complexities of our business‚” the company said in response to questions. “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.”

Oakbay would not name the bank it is using.

Earlier this month‚ the Sunday Times reported that the SA Reserve Bank had demanded that an Indian bank release documents related to bank accounts owned by the Gupta family.

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

The newspaper established that the Reserve Bank and the Financial Intelligence Centre had requested the Bank of Baroda to provide documents on deposits into accounts belonging to the Guptas.

Following the decision by the South African banks to cut business ties‚ Oakbay warned its staff that it might not be able to pay salaries.

Employees then wrote an open letter to the banks, appealing to their executives to restore the banking services as they feared losing their jobs.

Oakbay had also asked cabinet ministers to intervene on its behalf. – BDlive