Gupta, Duduzane Zuma resignations just smoke and mirrors

8 April 2016

The resignation of the Gupta brothers and Duduzane Zuma from Oakbay Investments is for no other reason than to facilitate the sale of the Optimum coal mine from Glencore to Oakbay. It is an insult to the intelligence of the people of South Africa for the Guptas and Zuma to claim that they have done this for their employees: it is an exercise in smoke and mirrors to protect their assets and profits; nothing more. 

A number of questions have already been raised about political influence in the Optimum deal and the extent to which the Guptas have used political connections to facilitate the transaction. Tainted by charges of corruption, the sale may have been in jeopardy with them at the helm.

Investec, the Rand Merchant Bank and Nedbank collectively hold R2.7 billion in Optimum’s debt. One can therefore only suspect that the deal would not have been approved while politically exposed individuals are directors of OakBay. This raises questions as to whether the banks themselves pressured the Guptas and Zuma to step down.

They will, however, remain shareholders of the company and continue to profit from lucrative Eskom tenders secured by Optimum. They will also, no doubt, be replaced by puppet directors who will do anything at their bidding.

Issued by James Lorimer, DA Shadow Minister of Mineral Resources, 8 April 2016