A South African business empire built up by members of the Gupta family is under pressure as they face a mounting backlash over allegations that they exploited their friendship with the president Jacob Zuma to loot billions of rand from the state.
Separate reports by the graft ombudsman in November, and the country’s biggest church association and a team of top academics in May, all allege that Atul, Ajay and Rajesh Gupta used their links with Mr Zuma to influence cabinet appointments and secure sweetheart contracts and deals from state companies. The Daily Maverick news website and the amaBhungane Centre for Investigative Journalism said on June 1 that they have been leaked hundreds of thousands of emails said to have been between the family and their employees and business associates that showed how the family and their allies allegedly benefited from undue influence over the government.
Atul Gupta said in an August 1 interview with BBC Radio 4 that the emails are “not authentic” and that he was doing “a very, very ethical job”. Bloomberg has not had access to the emails or been able to verify their authenticity.
South Africa's four biggest banks shut accounts operated by Gupta-controlled companies last year, due to the perceived risks of being associated with the family, who arrived from India in the 1990s. In April, the Mumbai-based Bank of Baroda said it would follow suit, potentially leaving the Guptas without banking facilities, according to three people familiar with the matter, and the Johannesburg-based Star reported on July 27 that the accounts would be closed in a month. Gupta-controlled Oakbay Resources and Energy was forced to delist from the Johannesburg Stock Exchange last month after its sponsor and transfer secretary quit. The family says all its dealings were above board and that it is being victimised by established white business interests.
_______________
Read more:
Banking dispute puts South African investment at risk
Liberty House’s Sanjeev Gupta to set up new bank
_______________
“The Guptas are being squeezed out of the country in a number of ways,” said Mpumelelo Mkhabela, a political analyst at the University of Pretoria’s Center of Governance Innovation. “They have become untouchable in the sense that no one wants to do business with them now.”
Bell Pottinger, a British public-relations firm, said in April it no longer represents Oakbay Investments, and last month fired a partner and suspended three other employees after a probe exposed “inappropriate and offensive” activities related to their work for the family, including a social-media campaign. On July 18, Vitol Group, the world’s largest independent oil trader, walked away from a deal to buy a stake in Africa’s biggest coal terminal from Tegeta Exploration and Resources, which is part-owned by the Guptas.
Vitol did not provide reasons for calling off the acquisition. Calls to Tegeta’s three listed numbers went unanswered. Oakbay referred queries to the Gupta-owned TNA Media unit, whose press office did not answer calls or return an email requesting comment.
With Mr Zuma narrowly surviving a parliamentary no-confidence vote by secret ballot on Tuesday and several high-ranking officials of the ruling African National Congress publicly calling on him to quit, the president’s ability to provide the Guptas and their businesses with political cover is diminishing. Mr Zuma is due to step down as leader of the ANC in December.
In the face of mounting pressure from his own party to halt “state capture”, a term that is widely used in South Africa to describe the undue influence of private business interests over government institutions, Mr Zuma has pledged to appoint a commission of inquiry. Policymakers are planning a separate, wider probe into state capture.
Gary Naidoo, a spokesman for the Guptas, did not answer three calls to his mobile phone or respond to two voice messages requesting comment. The presidency spokesman Bongani Ngqulunga did notanswer three calls seeking comment.
The Guptas first established a computer business in South Africa in the 1990s before amassing stakes in uranium, gold and coal mines, a luxury game lodge, an engineering company, a newspaper and a 24-hour news TV station.
Mr Zuma’s son, Duduzane, has worked with the Guptas for 13 years, initially starting as a 22-year-old trainee at their Sahara Computers business. Publicly available documents show that Duduzane and the Guptas have simultaneously served on the boards of at least 11 companies.
The favouritism the Guptas allegedly enjoyed from state entities was laid out in the graft ombudsman report last year that alleged Brian Molefe, formerly the chief executive of the electricity utility Eskom, helped them to secure a deal to buy Optimum Coal from Glencore, and awarded them favourable coal contracts. Mr Molefe and Eskom have disputed the allegations, and the public enterprises minister Lynne Brown has ordered an investigation into Eskom contracts for the past 10 years. Mr Molefe resigned as chief executive soon after the November report was released, and was forced by the ANC to leave the company again in May after briefly being reappointed. Glencore has declined to comment on the claims.
The leaked emails suggest that a Gupta associate allegedly secured US$400 million in kickbacks from a contract to supply locomotives to the state rail operator Transnet SOC. A big slice of the government’s advertising budget also goes toward the family’s media outlets, according to the opposition Democratic Alliance.
_______________
Read more:
Eskom’s chief is a cause for concern in South Africa
Africa’s costly missing rail links
_______________
Mr Zuma, his son and the Guptas have denied wrongdoing. While the Guptas said a year ago that they would exit their South African businesses by the end of 2016, “in the best interests of our business, the country and our colleagues” they have not followed through.
That announcement was part of a public-relations exercise and “in no way sincere,” said Darias Jonker, an analyst at Eurasia Group. However, “the email leaks and other circumstantial evidence show that the family has indeed been divesting, in the sense that large sums of money have been moved offshore”, he said.
The Guptas could eventually leave South Africa, said Andre Duvenhage, a politics professor at North-West University in Potchefstroom, west of Johannesburg.
“The position of the Guptas is extremely difficult,” he said.
“The tide is constantly going against them. There’s no future for them here.”
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
Killing of Qassem Suleimani
The%20specs
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Know your camel milk:
Flavour: Similar to goat’s milk, although less pungent. Vaguely sweet with a subtle, salty aftertaste.
Texture: Smooth and creamy, with a slightly thinner consistency than cow’s milk.
Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.
MATCH DETAILS
Liverpool 2
Wijnaldum (14), Oxlade-Chamberlain (52)
Genk 1
Samatta (40)
Squad
Ali Kasheif, Salim Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdulrahman, Mohammed Al Attas, Abdullah Ramadan, Zayed Al Ameri (Al Jazira), Mohammed Al Shamsi, Hamdan Al Kamali, Mohammed Barghash, Khalil Al Hammadi (Al Wahda), Khalid Essa, Mohammed Shaker, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Al Hassan Saleh, Majid Suroor (Sharjah) Walid Abbas, Ahmed Khalil (Shabab Al Ahli), Tariq Ahmed, Jasim Yaqoub (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Muharami (Baniyas)
The specs
Price, base / as tested Dh12 million
Engine 8.0-litre quad-turbo, W16
Gearbox seven-speed dual clutch auto
Power 1479 @ 6,700rpm
Torque 1600Nm @ 2,000rpm 0-100kph: 2.6 seconds 0-200kph: 6.1 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Fifa Club World Cup quarter-final
Kashima Antlers 3 (Nagaki 49’, Serginho 69’, Abe 84’)
Guadalajara 2 (Zaldivar 03’, Pulido 90')
INFO
What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Honeymoonish
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Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
'Moonshot'
Director: Chris Winterbauer
Stars: Lana Condor and Cole Sprouse
Rating: 3/5
MORE FROM CON COUGHLIN
More from Rashmee Roshan Lall
Day 1 results:
Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)
Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
6 UNDERGROUND
Director: Michael Bay
Stars: Ryan Reynolds, Adria Arjona, Dave Franco
2.5 / 5 stars
The biog
First Job: Abu Dhabi Department of Petroleum in 1974
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work
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WORLD'S%2010%20HIGHEST%20MOUNTAINS
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New schools in Dubai
Low turnout
Two months before the first round on April 10, the appetite of voters for the election is low.
Mathieu Gallard, account manager with Ipsos, which conducted the most recent poll, said current forecasts suggested only two-thirds were "very likely" to vote in the first round, compared with a 78 per cent turnout in the 2017 presidential elections.
"It depends on how interesting the campaign is on their main concerns," he told The National. "Just now, it's hard to say who, between Macron and the candidates of the right, would be most affected by a low turnout."
The biog
Age: 19
Profession: medical student at UAE university
Favourite book: The Ocean at The End of The Lane by Neil Gaiman
Role model: Parents, followed by Fazza (Shiekh Hamdan bin Mohammed)
Favourite poet: Edger Allen Poe
UAE currency: the story behind the money in your pockets
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
The Saga Continues
Wu-Tang Clan
(36 Chambers / Entertainment One)
THE DETAILS
Solo: A Star Wars Story
Dir: Ron Howard
Starring: Alden Ehrenreich, Emilia Clarke, Woody Harrelson
3/5
Fast%20X
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MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
OTHER IPL BOWLING RECORDS
Best bowling figures: 6-14 – Sohail Tanvir (for Rajasthan Royals against Chennai Super Kings in 2008)
Best average: 16.36 – Andrew Tye
Best economy rate: 6.53 – Sunil Narine
Best strike-rate: 12.83 – Andrew Tye
Best strike-rate in an innings: 1.50 – Suresh Raina (for Chennai Super Kings against Rajasthan Royals in 2011)
Most runs conceded in an innings: 70 – Basil Thampi (for Sunrisers Hyderabad against Royal Challengers Bangalore in 2018)
Most hat-tricks: 3 – Amit Mishra
Most dot-balls: 1,128 – Harbhajan Singh
Most maiden overs bowled: 14 – Praveen Kumar
Most four-wicket hauls: 6 – Sunil Narine
Scoreline
Liverpool 4
Oxlade-Chamberlain 9', Firmino 59', Mane 61', Salah 68'
Manchester City 3
Sane 40', Bernardo Silva 84', Gundogan 90' 1