CEO Howa quits Gupta company as pressure mounts

The pressure and the publicity around Oakbay Investments appears to have had a telling effect on the company’s chief executive Nazeem Howa, who resigned with immediate effect today due to his “poor health”.

“Based on medical advice, Mr Howa has resigned for reasons relating to poor health,” Oakbay Resources and Energy said in a statement announcing that Howa had resigned as a non-executive director of the company with immediate effect.

Ronica Ragavan, Oakbay financial director, will assume the role of acting chief executive while the company searches for a permanent successor.

“It has been an honour and a privilege to lead such a talented group of co-workers. In time, Oakbay will be recognised as the type of company South Africa needs: innovative, job-creating, taxpaying and law-abiding. I look forward to that day,” Howa said in a statement.

In the latest blow for Oakbay, Finance Minister Pravin Gordhan on Friday submitted an affidavit that revealed how R6.8 billion in “suspicious and unusual transactions” may have resulted in the four major banks closing accounts associated with Gupta family companies.

The payments are listed in a Financial Intelligence Centre report attached to court papers filed in the North Gauteng High Court in Pretoria.

Earlier today, Oakbay Resources and Energy confirmed in a statement to shareholders that five of its transactions were implicated in the list of 72 transactions reported to the Financial Intelligence Centre, as mentioned in Gordhan’s affidavit.

In another announcement, Oakbay denied that any money had been removed from the Optimum Rehabilitation Fund.

“The Rehabilitation Fund balance was moved from Optimum Mine Rehabilitation Trust’s account with Standard Bank to Bank of Baroda in June. This transfer was due to Standard Bank’s closure of all company accounts. This is the only movement of money from this account. This movement was with the full permission of the joint business rescue practitioners,” Oakbay said.

“Any suggestions that the rehabilitation fund has been drawn down upon are absolutely untrue and defamatory,” the company added.

“This is yet another example of groundless innuendo circulated by some media which Oakbay has proven to be totally false,” Oakbay said.

“Oakbay will release a separate announcement in response to Gordhan’s affidavit tomorrow morning,” the company said.