The latest bank move against president Jacob Zuma’s cronies comes amid a scandal over the Gupta family’s relationship with the Zumster and allegations of an attempted state capture by the Indian family.
And now they are cry babies. In a statement Oakbay said: “Oakbay has received no reason whatsoever justifying FNB’s actions. We are already in the process of moving our accounts to a more enlightened institution.”
FNB joined Absa, Sasfin Capital and auditing firm, KPMG, in cutting ties with the Gupta’s listed company, Oakbay Resources & Energy.
City Press reported on Sunday that the actions of KPMG, Sasfin and Absa left the R10 billion company without its auditors, its sponsor and its banker. KPMG terminated its business relationship with the Gupta business empire last week due to the political storm surrounding the family’s friendship with a president who has no apparent regard for upholding the principles of South Africa’s constitution – a constitution that came about through the blood spilled in the Apartheid struggle.
With regards to KPMG dumping them, Oakbay said in a statement: “The reason for KPMG’s resignation is solely based on their assessed association risk and KPMG have indicated that there is no audit reason for their resignation, whereas the termination of Sasfin’s services follows a recent decision by Sasfin to align the strategic objectives of Sasfin’s Corporate Finance Division more closely with that of the broader Sasfin group.”
Sasfin, which cut ties last month but will stay on until June 1, said it had taken a decision “to align Sasfin Capital’s corporate finance division’s strategic objectives” with the broader group.
City Press noted that Oakbay is obliged to find a new JSE sponsor within 30 days and a new approved auditor, under the exchange’s rules.
Oakbay Resources said that it is in the process of identifying and appointing a new auditor and sponsor.
