Black business snubs Guptas

The Gupta family have been rebuffed in an audacious attempt to buy the influence of the Black Business Council, a powerful lobby group whose members include some of the biggest businesses in South Africa.

Sources said a proposal to have Oakbay Resources and Energy, the family's investment vehicle, become a corporate member of the council was made last month to the organisation's membership committee by Mzwanele Manyi, the council's head of policy.

But the offer, said to include a once-off R5-million donation as well as R1-million a month, was rejected before any official process could get under way, the Sunday Times has learnt.

The council's vice-president of business, Gilbert Mosena, who serves on the membership committee alongside president Danisa Baloyi and secretary-general George Sebulela, said he could not discuss the proposal as he was not a spokesman.

But, he added, the Guptas "have got issues with the government, and [also] how they have dealt with their issues businesswise, it will not be good for the BBC to find itself entangled with them. They've got a right to belong wherever, but given the polluted sky, they must cleanse themselves."

Asked about the claims of the R5-million donation, he said: "We are not in the organisation for money, we run our own businesses. We're not here to amass money."

Black Business Council corporate members are required to pay an annual fee of R200,000. Some make donations in excess of R1-million.

Approached for comment this week, Manyi said he had no recollection of any such matter. "Who told you this? What you've just said is a blue lie."

He added: "If the Gupta family want to be a corporate member of the BBC, nothing stops them. They qualify to be members of the BBC. If the BBC can accept people that have been confirmed as having stolen billions ... what would be wrong with having discussions with people who have not been found guilty of anything? Not even the public protector has made any adverse findings against them.

"Even [construction company] Group Five, after being part of those that colluded and stole R50-billion, are still part of the BBC."

Manyi, a former government spin doctor, is widely known as a vocal supporter of the Gupta family, and is a firm backer of President Jacob Zuma.

In June, Rapport reported that the family were pushing for him to be made director-general of the Department of Mineral Resources, a claim he dismissed.

Manyi asked the public protector to investigate former finance ministers Trevor Manuel and Nhlanhla Nene, as well as current minister Pravin Gordhan, for the R100-billion overruns by Eskom during its Kusile power station build.

He also threatened to open a case against AngloGold Ashanti chairman Sipho Pityana for calling for Zuma's removal, saying it contravened laws combating the destabilisation of South Africa.

Sebulela dismissed any discussion about the Guptas, saying membership could not be carried out via an informal process.

"I don't remember the discussion of that matter. If it was passage/corridors discussion we must refrain from saying that these things come from BBC."

Sebulela said he could not pre-empt how a formal application would be treated, adding that such an application would only be considered once it was made.

"To become a member you have to make a formal application, and I have not seen any form from them to me."

The organisation styles itself as the voice of black business, with the muscle to lobby the government on policy. Former presidents include mining magnate Patrice Motsepe and Ndaba Ntsele of the Pamodzi Group.

The council's members include associations such as the Black Management Forum, the Association of Black Chartered Accountants and the Association of Black Securities and Investment Professionals.

According to its website, corporate members include African Rainbow Minerals, the Pamodzi Group, Redisa, Edison Group, Group Five, Sanlam and accounting firm SizweNtsalubaGobodo.

It is not clear why membership of the group is so important to Oakbay. Gupta family spokesman Gary Naidoo did not respond to specific questions, saying only: "The Sunday Times has consistently printed innuendo, speculation and lies about the Gupta family, its businesses and its friends."

Two months ago, the council was involved in a war of words with Pityana, who urged businesses to take a stand on Zuma's leadership shortcomings.

In response, then BBC president Ntsele pledged the council's support for Zuma, a decision that angered some affiliates.

The Gupta family have had a torrid 2016, with increased scrutiny of their dealings with state-owned enterprises as well as a growing number of allegations that they were using their proximity to Zuma to influence the government.

In April, South Africa's four major banks terminated the Guptas' accounts over fears they were used for possible money laundering.

A subsequent court application by Gordhan revealed that the Financial Intelligence Centre had flagged R6.8-billion in transactions conducted by the family, their businesses and associates.

Former public protector Thuli Madonsela's report on allegations of state capture by the family revealed how Eskom bent over backwards to ensure they received preferential treatment that allowed them to ultimately purchase Optimum Coal Mine.

skitis@sundaytimes.co.za