Brothers Atul and Varun Gupta were directors of Oakbay until they stepped down last Friday.
Auditors KPMG severed their relationship with Oakbay Investments as the risk of being associated with the company due to the controversy surrounding the Guptas was too great.
Reports have alleged that the brothers have held influence over politicians‚ and have been said to have offered ministerial positions.
As Oakbay is a listed company‚ it has to be audited annually in terms of JSE listing requirements and the Companies Act.
Andre Visser‚ general manager of Issuer Regulation at the JSE‚ said: “Listed companies need the services of an auditor when they issue their annual financial statement once per annum and in certain cases for interim and provisional financial statements.
“This ensures that the information is reliable to assist investors make informed investment decisions.”
Without annual audits‚ the JSE would be legally obliged to delist them from the exchange‚ he explained.
It is unclear if Oakbay has been able to find new auditors as its CEO‚ Nazeem Howa‚ had not responded to queries.
Visser said: “The JSE is keeping a close eye on the Oakbay group’s compliance with the listings requirements and will ensure that the appropriate announcements are made.”
Three banks have also stopped offering services to the Guptas and their companies.
Asked if it would consider reopening banking accounts with Oakbay Investments following the brothers’ resignations‚ FNB remained mum.
Nainesh Desai‚ manager at FNB Risk‚ said: “Due to the confidential nature of our customer relationships‚ FNB is not in a position to provide any further details.”
– TMG Digital/The Times
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