Ruling a reprieve for Gupta companies

THE North Gauteng High Court in Pretoria yesterday granted Gupta-owned companies 15 days to interdict Bank of Baroda from closing their accounts.

The Indian-based financial institution wants to cut ties with Gupta-linked companies, joining the ranks of several firms – including South Africa’s four biggest banks – that are distancing themselves from a scandal involving the business associates of President Jacob Zuma.

The public protector has accused the Gupta family of using their close relationship with Zuma to influence political decisions and win business.

Both Zuma and the Guptas have denied any wrongdoing, and the Guptas have not been charged with any crime.

Bank of Baroda was meant to close the Gupta-owned companies’ bank accounts on September 29 following a ruling by Judge Hans Fabricius.

The companies under the Oakbay Group pleaded with the court on the eve of the closing of the bank accounts, asking for them to stay open until December when they will then challenge the bank’s decision to close the accounts.

Yesterday Judge Tati Makgoka granted 20 companies belonging to the controversial Gupta family a stay of execution.

Judge Makgoka said that pending final determination of the matter the bank had been ordered not to close the Oakbay Group accounts or impede their banking needs in any way.

He gave the Gupta-linked companies 15 days to launch their interdict application against the Bank of Baroda. – ANA