Judgment expected in second Gupta bid to stop account closures

The Pretoria High Court will on Monday for the second time hand down judgment on an application by more than 20 Gupta companies to interdict the Bank of Baroda from closing the family’s accounts.

While it is not clear exactly how the matter was again put on the urgent roll so soon after Judge Hans Fabricius denied an application on September 21‚ the matter was heard again on September 28 and 29 before Judge Tati Makgoka.

Both applications sought to delay the account closures until early December‚ at which time the companies will argue the main application to delay the account closures until the sale of the Oakbay group of companies can be finalised. The Bank of Baroda has argued it would suffer reputational harm should it continue its association with the Gupta family‚ and had reconsidered the relationship after a R11-million fine was levied by the Financial Intelligence Centre for the bank’s incorrect reporting of suspicious transactions.

Senior counsel for the Gupta companies‚ Advocate Rafik Bhana‚ submitted that the matter was so urgent that Judge Makgoka could deliver his judgment immediately and only provide reasons at a later stage.

Makgoka was of the view‚ however‚ that the nature of the application was such that he would need to reflect on the material issues of the matter.

The companies‚ which included the Guptas’ mining ventures Oakbay and Tegeta as well as arms manufacturer VR Laser‚ have consistently argued that the closures would place at risk the livelihoods of 7‚500 workers.

Makgoka said he required a week to deliberate and deliver his judgment‚ ordering the accounts remain open until he handed down his judgment.

Bhana told the court that the true reasons behind Bank of Baroda and other banks ending their relationship with the Gupta family would be explained during the main application in December.

This included “pressure on the banks by third parties”‚ namely the Reserve Bank.

He also explained it would take at least two years for the businesses to wind down their requirements of the bank‚ as the sale of their companies was processed.

Bhana also indicated that arguments by the Bank of Baroda that the family could use the various pay agents they had contracted to pay employees was “absurd”.

During the previous judgment‚ Judge Fabricius had accepted the bank’s argument that the pay agents could be paid from bank accounts overseas.