Guptas‚ FIC face-off over Oakbay's 'suspicious and unusual' transactions

27 November 2016 - 16:16 By Franny Rabkin

Companies in the Gupta family's Oakbay group on Friday launched a court case against the Financial Intelligence Centre (FIC) to access more information about reports of “suspicious and unusual” transactions‚ recently revealed in a court case by Finance Minister Pravin Gordhan. Pressure has been mounting on the Gupta family and their companies‚ first with the closure of their bank accounts by the four big banks earlier this year and then the release of the Public Protector's State of Capture report on 2 November – detailing serious allegations against them. Just prior to that‚ in October‚ there was the bombshell release of a list of 72 “suspicious and unusual” transactions with a value of at least R6.8bn over four years‚ in a certificate from the FIC. The FIC certificate was annexed to the founding papers in Gordhan's case‚ which is asking the High Court in Pretoria to declare that the finance minister has no power or obligation to intervene in the relationships between the Gupta's and the banks.Oakbay has publicly said it could defend the propriety of every single transaction listed‚ but is yet to file its answering papers in court. Instead it has launched a new case‚ against the FIC only‚ asking that a “duly authorised representative” of the Oakbay group “have access to and obtain detailed information” with regard to the certificate.Jacob Zuma says banks’ move to close Gupta accounts is ‘suspicious’The decision by four major banks — Nedbank‚ Standard Bank‚ First National Bank (FNB) and Absa — to stop doing business with the Gupta family is suspicious‚ and that is why the banks need to be investigated‚ President Jacob Zuma said in Parliament on Wednesday. Oakbay acting CEO Ronica Ragavan said in an affidavit that‚ since the certificate was released‚ there was a “huge media response”‚ with reports “slamming” the Gupta family and which impacted on the business of the Oakbay companies.The response came despite there being no adverse criminal findings against them and despite the fact that the State of Capture report did not make “one single adverse conclusion” against the Oakbay companies or the Gupta family‚ she said.“The applicants have a clear right to protect their commercial interests and good name‚” said Ragavan.While the FIC certificate gives some information – which company was involved‚ and‚ sometimes‚ the value of the transaction – there is much that is not revealed: who was on the other side of the transaction‚ which way the money flowed‚ from which (or to which) bank account it was paid; and also‚ possibly‚ identifying who made the report.President Zuma did not ask Ministers Van Rooyen or Zwane to interdict state capture reportPresident Jacob Zuma says he did not ask for help from the two cabinet ministers who‚ unsuccessfully‚ sought to block the release of the Public Protector report on the Gupta family's political influence. Ragavan said it was even unclear whether the dates referred to on the certificate were the dates of the transactions or the dates the reports were made.She said the Oakbay group needed this information in order to answer the allegations and “address the misconceptions” created by Gordhan's application.But a request for the information to FIC was refused‚ with a lawyer's letter saying that the Oakbay companies were not entitled to “any of the information requested”.Ragavan said the Oakbay group had not ask for the identity of the reporter and that the information could be furnished in a way that protected the reporter. “The applicants do not intend to use the information obtained from the centre for any other reason than to protect their rights‚” she said.“Since the applicants only require access to information about themselves‚ nobody will be prejudiced by the relief sought‚” she said.TMG Digital..

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