Guptas dismantle South African empire as bank accounts close

Bloomberg

The Gupta family are selling their assets in South Africa to little-known companies as their access to banking facilities dries up and allegations intensify that they used their friendship with President Jacob Zuma to wield undue influence over his administration.
On Wednesday they announced the sale of a coal business to a Swiss company that has no history in the commodities business, after saying this week that they plan to sell their media unit to a former government spokesman in a deal the family are funding themselves. They have said that without banking facilities they won’t be able to pay workers.
“The Guptas allegedly use very elaborate structures to do their business and may be selling assets to circumvent their lack of access to banking facilities,” Darias Jonker, an Africa analyst at risk advisory firm Eurasia Group, said. “I wouldn’t be surprised that as these deals progress and we take a closer look, we find that there’s been no real transfer of ownership.”
The family is facing a backlash from politicians and civil-society groups over allegations they used a friendship with Zuma and a business relationship with one of his sons to secure sweetheart deals from the government and state companies. South Africa’s four biggest banks shut Gupta-controlled company accounts last year, citing reputational risk and regulatory concerns. India’s Bank of Baroda, the last lender to continue doing business with them, is in the process of following suit.

Preferential Treatment
The Guptas, who moved to South Africa from India in the 1990s, deny wrongdoing and claim they’re being targeted by established white businessmen intent on protecting the profitability of the assets that they built up during apartheid. Zuma dismisses accusations that he’s been unduly influenced by the family or given them preferential treatment.
Gupta-controlled Oakbay Investments said Wednesday it agreed to sell its Tegeta Exploration & Resources coal unit for 2.97 billion rand ($244 million) to closely-held Charles King SA, a Swiss company it said is owned by Amin Al Zarooni, to save jobs.