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The Gupta family have put their shares up for sale as they prepare to exit all their South African operations by the end of the year.
Gupta family spokesperson Gary Naidoo said in a statement yesterday afternoon that “this decision is in the best interests of our business, the country and our colleagues”.
He said “several prospective international buyers” were already lining up to take the shares off the hands of the Guptas, well known as President Jacob Zuma’s benefactors, and that they “will soon be in a position to make further announcements”.
“Since our decision to step down from all executive and nonexecutive positions in all our South African businesses in April 2016, the local management team has grown our businesses from strength to strength, with turnover and profits showing good growth and more jobs created,” Naidoo said.
“As such, we announce today our intention to sell all of our shareholding in South Africa by the end of the year.”
In an interview with the SABC last night, Oakbay CEO Nazeem Howa said the family’s decision to “step down was a sacrifice” and that they were “genuinely concerned about our 7 500 staff members”.
“We are very sad to be losing what we consider to be very good people,” he said. “It’s a very sad day today.”
Howa denied, however, that the family was leaving the country, saying that the family was in South Africa at the moment.
“They are South Africans; they love this country,” he said.
It has been a torrid week for the Gupta family, who sent out three statements yesterday, the last of which revealed that they planned to sell their interests in their South African businesses.
In a statement sent at 10.30am, they dismissed allegations that the Guptas were central in efforts to get rid of Finance Minister Pravin Gordhan.
News24 reported that Gordhan told a meeting of Treasury staff on Friday that the Guptas were attacking him because of the work the department was doing.
The website reported that Gordhan also explained to his staff that the Hawks’ reading of the law in formulating charges against him was incorrect, and that there was no legal basis for their investigation.
He also allegedly said that what was underway in the country at the moment was a battle of “Mandela values” versus the values of those who steal.
Treasury spokesperson Phumza Macanda did not comment on the meeting.
But Naidoo said in a statement on Saturday: “We have read media reports on News24 regarding the alleged comments by Minister Gordhan to his Treasury staff, about the Gupta family, with deep disappointment.”
“We have repeatedly pointed out that our family has been a victim of a political campaign against it. A narrative has been constructed against us, which has been perpetuated by many media titles, and that flawed perception has become the truth in the eyes of some.
“Meanwhile, no charge has ever been brought against us. We repeat the challenge to our detractors – if you have evidence against us, please bring it. Otherwise, please leave us alone. We have no interest in politics, only business.”
Just hours before the shock announcement that the family was selling its business interests in the country, Naidoo said that they “remain fully committed as shareholders to ensure that our businesses are run along sound business lines with all transactions being done on a transparent, at-arms-length basis.
“We hold our executives to high standards and would not hesitate to take action against any executive who breaches our internal codes of good practice, or, indeed, any regulatory or legislative policy, procedure or framework. We firmly believe in the rule of law and we are happy to answer to any and all allegations made against us.”
“Finally, to the media, may we plead with you to not unnecessarily position us in the middle of the current issues in our country.”
In the first statement of the day, sent just after 7am, Oakbay Investments denied the reported “conflict” between a Gupta coal mining company, Tegeta, in which President Jacob Zuma’s son Duduzane has a significant stake, and the Treasury.
“Oakbay Investments and Tegeta have noted press coverage in recent days surrounding the company’s contracts with Eskom and coal supply from the Brakfontein mine,” the statement said.
“We strongly believe we have done nothing wrong and have followed every policy and process correctly and have no issue with government or a regulatory body reviewing our activity,” the company said.
Business Day reported on Wednesday that Tegeta Exploration and Resources threatened to interdict the Treasury should it release a report into its investigation of Eskom’s coal contracts.
The newspaper reported that Treasury’s chief procurement officer, Kenneth Brown, investigated Eskom’s coal contracts at the beginning of the year, and the findings of the investigation have never been publicly released.
The DA has applied for a copy of the report in terms of the Promotion of Access to Information Act.
Brown’s investigation, the paper reported, followed a Treasury decision to review contracts worth more than R10 million as a move to crack down on corruption.
But Oakbay Investments said in its statement that “at the time of the Treasury’s request to release its report, Tegeta offered to participate and assist with the provision of relevant facts and accurate data”.
“We believe that any report publicly released should be accurate. We also believe that our input would enhance its accuracy ahead of the report being made public,” it said.
Oakbay Investments said none of the companies in its group had “any direct relationship with Treasury, and are fully supportive of the work being done by Treasury to create an environment conducive to growing South Africa’s economy.”
In April, following the Guptas’ announcement that they had relinquished control of their business empire, City Press reported that Ajay and Atul Gupta had left Lanseria airport on a trip to Dubai with “a mountain of suitcases,” prompting speculation that the family was leaving South Africa for good.
The trip followed deputy finance minister Mcebisi Jonas’ bombshell announcement that the Guptas had offered him the job of finance minister while Nhlanhla Nene was still in office.
The country’s four major banks also dumped the family, who claimed then that they were resigning from their executive and nonexecutive positions in their South African companies for their sake of their staff.
City Press also reported that the family had bought a R445 million rand home in the exclusive Dubai suburb of Emirates Hills, which was decorated in marble and gold and had 10 bedrooms, 13 bathrooms, nine reception rooms, a double grand staircase, hand-painted dome and space for 11 cars.
Naidoo said yesterday that the April decision had seen the company’s “local management team” growing the family’s businesses.
“As a family, we now believe that the time is right for us to exit our shareholding of the South African businesses that we believe will benefit our existing employees, and lead to further growth in the businesses,” he said.
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