Essop Pahad, Guptas sever business ties

Essop Pahad has broken all business ties with the Gupta family after years of serving as the billionaire clan's key Mbeki-era ally.

Pahad, a former minister in the presidency under Thabo Mbeki, said he resigned "one or two weeks ago" as a director of TNA Media - owners of The New Age newspaper - after launching the daily a year ago.

And the Sunday Times can reveal that Pahad's own political magazine, The Thinker, has lost all its funding from the Guptas. Atul Gupta, chairman of TNA, last year appointed Pahad and Telkom chairman Lazarus Zim as the company's two directors.

Pahad said: "It had nothing to do with any break-up. We're still friends. I discussed it with them that I really didn't have the time and, (because of) my age, I would not be able to fulfil my responsibilities as a director."

Pahad, 72, said he had given Atul Gupta his resignation. "They were not happy; they asked me to stay on. I have a grandson now. I want to spend more time with him."

The Guptas co-founded and bankrolled The Thinker with Ajay Gupta serving as non-executive chairman of its holding company, Vusizwe Media. Pahad said three months ago, he had asked Ajay if "I could do it on my own". "We have to cut costs obviously," he said. "The Guptas financed The Thinker. Now we have to finance it ourselves.They were very good about it and, I want to stress that our friendship remains as strong as ever."

Pahad denied any link between his resignation and the end of the Guptas' support for The Thinker.

Yesterday, Atul Gupta bristled at questions which linked the two splits. "We respect Dr Pahad's decision to take things easier since his 72nd birthday."

Gary Naidoo, managing editor of The New Age, said: "That's a board decision and I have not had a proper briefing on it."

TimesLIVE